The Physical Treasure: The Countdown Is On at Lahontan
In the shadow of the established gold giants, an up-and-coming developer is making its mark: Lahontan Gold. The Canadian company operates exclusively in the US state of Nevada, one of the safest and most mining-friendly regions in the world. An updated Mineral Resource Estimate (MRE) is set to be published by September at the latest, perhaps even as early as August. At the same time, a revised Preliminary Economic Assessment (PEA) for the flagship project, the historic Santa Fe Mine, is nearing completion. There are many indications that the ground contains far more resources than the previously estimated 1.95 million ounces of gold equivalent would suggest.
However, the upcoming studies only cover the core project that is already known. The latest discoveries outside the old open-pit boundaries are not yet included in these estimates. Recent press releases demonstrate just how quickly the projects are gaining value. During drilling in the neighboring Calvada East area, the team stumbled upon a geological sensation. The drill hole designated CAL26-11R returned 13.7 m grading 1.10 g/t gold equivalent (AuEq). What makes this special is that the high-grade mineralization is hosted in Tertiary volcanic rock. This represents a completely new type of deposit and opens up a major new exploration target. Just one hole further, CAL26-12R, another 12.2 m grading 1.26 g/t of oxide ore was uncovered. In addition, there are broad, shallow hits in the Slab West zone, such as approximately 35.1 m grading 0.21 g/t in hole CAL26-13R. This shows that Lahontan sits atop a growing area that the market has so far overlooked. 0.21 g/t may not sound like much, but thanks to the heap leaching process widely used in Nevada, which involves dousing the rock with a dilute cyanide solution to extract the precious metal, this is sufficient, at the current gold price of nearly USD 4,400 per ounce, to enable highly profitable mining.
The management team is committed to turning this potential into commercial success. CEO Kimberly Ann and Brian Maher, the company’s geological mastermind, are legends in the industry: as early as 2010, they led Prodigy Gold to success. At that time, they started with an estimate of 1.6 million ounces. Just 26 months later, Argonaut Gold acquired the company—with a resource more than four times as large. Aggressive drilling programs and Maher’s geological intuition had brought the true potential of the deposits to light. The duo is now repeating exactly this feat at Lahontan.
Such a permit-ready oxide project in Nevada would be attractive to major competitors. This time, however, the plan is different. Instead of selling early, management intends to lead the project to success on its own. The stated goal: the first gold bars produced by the company are to be cast by the end of 2027, or early 2028 at the latest. The logistical groundwork has been laid thanks to the company’s own water rights and an in-house substation. And on the old heap-leach pads of the main Santa Fe mine, there is enough ore-bearing rock exposed that could not be processed with 1990s technology. Using modern methods, approximately 200,000 ounces can be recovered from this, with a current market value of just under USD 880 million. This is offset by financing costs of USD 135 million for the mine’s reopening. This provides sufficient leeway to fund further activities arising from the West Santa Fe satellite project and the new gold discoveries. The company’s market capitalization is equivalent to approximately USD 110 million (slightly more than CAD 150 million). Given the enormous potential for appreciation, this seems almost absurdly low; the penny share price of CAD 0.37 (currently EUR 0.22-0.23 on German exchanges) leaves plenty of room for growth.
The Hidden Treasure in the Balance Sheet: Allianz on a Steady Upward Trend
Undiscovered value is not always buried deep underground. Sometimes it is hidden in the balance sheets of large corporations. This is illustrated by the example of Allianz. In January, the DAX-listed company announced the sale of its minority stakes in the Indian joint ventures with Bajaj General Insurance and Bajaj Life Insurance. The price? Approximately EUR 2.1 billion. For management, this is a strategic success. Such minority stakes are often carried on European balance sheets at nothing more than their historical cost. The actual sale has now brought this hidden treasure to light. However, Europe’s largest insurance group is not just sitting on the money—it is using it for a smart reallocation. For EUR 2.0 billion, the Munich-based company is acquiring HSBC Life Singapore. In this way, capital is shifting from a passive minority stake to an actively managed, high-margin business in the Asian financial hub of Singapore.
The stock market is rewarding this strategic focus. Since the initial announcement of the exit from India in March 2025, the stock has been rising almost continuously. At that time, it was still trading at around EUR 340.00. A few days ago, the price jumped above EUR 440.00. This brings the share price back to the level of its all-time high from the year 2000. For 26 years, this mark had acted as an insurmountable barrier. Just a few years ago, no one would have believed it could be reached again. Reality has now caught up with most analysts’ price targets, which average EUR 445.50. The question is less about whether and more about when these targets will be raised. Berenberg Bank took the lead, setting a new target of EUR 684.00. In addition to price gains, the dividend remains a key component. For fiscal year 2025, Allianz paid EUR 17.10 per share. Analysts are already expecting EUR 18.48 for 2026, which translates to a yield of more than 4%.
The Strategic Treasure: BP and the Pressure from the Merciless
Lahontan Gold increases its value through drilling, while Allianz finds value in its own balance sheets. Oil stocks like BP offer a third lever: additional profits—so-called “windfall profits”—driven by external price shocks. But while competitors like Chevron are trading near all-time highs, the British company is still grappling with image problems stemming from the 2012 Deepwater Horizon disaster and the aftermath of a USD 25 billion write-down of its Russian operations in 2022. The oil giant has not been spared from scandals either. Former CEO Bernard Looney was forced to step down in 2023 due to a concealed affair with a female employee, and Chairman of the Board Albert Manifold resigned in May of this year due to secret contacts with US hedge fund manager Paul Singer, whose firm Elliott Investment Management holds more than 5% of BP’s shares. Added to this are other legacy issues: an expensive, convoluted corporate structure and higher debt relative to the industry average. Furthermore, the company’s erratic course in its green transition in previous years unsettled many investors. The stock market is punishing this with a significant valuation discount. The share price, currently at GBP 5.23 (EUR 6.13), remains below the level seen in the late 1990s. The market capitalization of around GBP 80 billion is less than half of the revenue expected for 2026.
But this is precisely where an opportunity lies for bold investors. Under new management, led by CEO Meg O’Neill, BP is pursuing a radical course to boost profitability. Unprofitable renewable energy projects are being scrapped. The focus is shifting back to the profitable oil and gas business. The result: thanks to high oil prices, BP is currently generating enormous free cash flow. With an expected price-to-earnings (P/E) ratio of 6, the stock is strikingly undervalued compared to the rest of the industry. US competitors such as ExxonMobil and Chevron have P/E ratios more than double that. Management is using the high profits for share buybacks. At just under 5%, the dividend yield is still slightly higher than that of Allianz. Unlike the German insurance giant, the analysts’ average price target of around GBP 6.20 is well above the current level; some firms see significantly more upside. The Royal Bank of Canada, for example, believes GBP 7.00 is achievable—a good third above the current share price. That is likely more in line with the expectations of the notorious US activist investor Singer (nicknamed “the Merciless”). His pressure is likely responsible for management’s cleanup efforts finally getting underway.
The Ground, the Balance Sheet, and the Barrel: Three Hidden Sources of Value
Whether in the depths of Nevada, in the convoluted balance sheets of DAX-listed companies, or in the volatile energy markets, spectacular gains on the stock market always occur when reality exceeds the market’s often overly conservative expectations. BP is the classic value bet on an undervalued giant that can close the valuation gap with the rest of the industry through long-overdue cleanup efforts—even if management apparently has to be forced to do so by external pressure. The example of Allianz shows how a solid blue-chip stock can, through smart acquisitions and the realization of hidden reserves, reach a historic price level again after 26 years while simultaneously becoming one of Germany’s most reliable dividend payers. Finally, Lahontan Gold offers pure, organic leverage through its drilling operations. New discoveries are rapidly increasing the physical net asset value—and management intends to realize that value with the planned start of production next year.
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