Massive Margins Point to Gilded Road Ahead for Gold Equities, Experts Say

1. Dryden Gold Corp., NexGold Mining Corp., and West Red Lake Gold Mines Ltd. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dryden Gold Corp., NexGold Mining Corp., and West Red Lake Gold Mines Ltd.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Gold miners have experienced a remarkable recovery in 2025, rising over 120% year-to-date, yet they remain fundamentally undervalued compared to the metal itself, according to global investment firm VanEck in a November 7 piece titled "Gold in 2025: A New Era of Structural Strength and Enduring Appeal."

"With all-in sustaining costs averaging around US$1,600/ounce, nearly every producer remains profitable at current prices" of over US$4,300, "resulting in record margins across the industry," the report said. "Miners are displaying improved capital discipline and stronger balance sheets — a key differentiator from previous cycles when high prices often led to overspending."

Gold prices remained near their highest level in over seven weeks on Monday, bolstered by expectations of further U.S. Federal Reserve rate cuts and a weaker dollar. Gold futures increased by 1.2% to US$4,381.10 per ounce, while spot gold rose 1.3% to US$4,349.73, Yahoo Finance UK Reporter Pedro Goncalves reported on December 15.

"Gold is likely to remain well bid into US non-farm payrolls, as evidence of labor market slack would keep front-end yields capped and the dollar weak, supporting a push toward US$4,380 to US$4,440 after a firm rebound from the US$4,243 support zone," said Kelvin Wong, senior market analyst at OANDA, according to Goncalves.

Investors are currently anticipating two rate cuts next year, with this week's U.S. jobs report seen as a crucial test of those expectations.

"Gold trades sharply higher above US$4,345, closing in on its all-time high as the macro backdrop turns supportive with the Fed cutting again, and we could see a year-end run higher," said Neil Wilson, UK investor strategist at Saxo Bank. Non-yielding assets like gold typically benefit from a lower interest rate environment.

'An Exceptional Year' for Gold

According to Frank Holmes writing for U.S. Global Investors on September 15, "Gold mining stocks are experiencing an exceptional year in 2025."

"The price of gold has reached one record high after another, and the mining companies extracting it are delivering some of the best returns in the market today," Holmes noted. "It's rare to witness such a strong alignment of factors benefiting this industry. From central bank purchases to political uncertainty and disciplined corporate practices, everything seems to be aligning perfectly for gold and the miners who produce it."

Gold has risen even further since Holmes wrote, indicating the continuation of the trend. VanEck, in its November 7 article, agreed with that perspective on the metal's future.

"Gold has the potential to trade even higher in 2026," the firm noted. "In recent years, strong rallies, such as the one gold has recently been enjoying, have often been followed by periods of consolidation around an established higher level, with the metal trading in a sideways pattern until a new catalyst emerges to drive prices even higher. Gold tends to outperform during later phases of inflationary cycles, when investors seek protection from social, geopolitical, and financial instability."

Gold was built for the shifting trends currently unfolding in the global economy: inflation, war, uncertainty, and growing financial instability. As of late 2025, gold continues to outperform major equity benchmarks, including the S&P 500, over multiple time horizons, VanEck said. In the past 12 months alone, gold has more than doubled the returns of the S&P 500 Index. As these trends continue to unfold and reshape the global economic landscape in the coming years, gold has the potential to rise toward US$5,000 per ounce.

"A rising gold price environment has historically been accompanied by strong performance by gold equities," the firm continued. "The sector outperformers must also demonstrate that they are fundamentally positioned and have a sound strategy that will translate higher gold prices into improved cash flow and higher returns, which will deliver growth."

Organic growth does not come easy in the gold sector, the piece said. Finding new gold deposits, or defining/expanding existing ones, is a difficult, lengthy, and capital-intensive process. Most senior and mid-tier companies struggle to simply replace their annual production. To significantly expand their depleting reserve and resource base, companies generally must acquire other companies or assets. All things equal, the more advanced a project is, the higher its valuation and the faster the company can deliver growth.

Gold's Rise Expected to Continue

Several Wall Street firms have released reports indicating that analysts and investors anticipate the rise in gold prices to continue in 2026, with some predicting it could reach US$5,000, wrote Investopedia Executive Editor of News Stephen Wisnefski on November 28.

He said many of the factors that have driven investors to invest in this traditional safe-haven asset are expected to persist, experts suggest.

Deutsche Bank raised its 2026 gold price forecast to US$4,450 from US$4,000, projecting a range of $3,950-$4,950, Wisnefski said.

"Third quarter supply-demand data supports a continued central bank bid. The positive structural picture shows inelastic demand from central banks and ETF investment diverting supply from the jewelry market," Deutsche Bank noted in a message to clients, according to the author. "Also, overall growth in demand outpaces supply."

On Tuesday, the gold market continued to test new support around US$4,300 and attracted modest bullish momentum as the U.S. labor market remains relatively resilient but shows signs of slowing, according to a report by Neils Christensen for Kitco News on December 16.

According to a report on Companiesmarketcap.com, the companies with the top margins in the industry include the majors you would expect: Franco-Nevada, Barrick, Agnico Eagle, and Newmont. At the top of the list is ASA Gold and Precious Metals with an operating margin of nearly 97%.

However, many smaller and junior explorers have seen their share prices rise or could be in a clear position to take advantage of gold prices and improved margins to extend their drilling campaigns and expand their resources, including West Red Lake Gold Mines Ltd., Dryden Gold Corp., and NexGold Mining Corp.

West Red Lake Gold Mines Ltd.

West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has initiated a fully funded 3,000-meter surface diamond drilling program at the Fork Deposit, situated roughly 250 meters southwest of its wholly owned Madsen Mine in Ontario's Red Lake Gold District.

This infill program aims to enhance resource confidence in a shallow, high-grade zone identified during a 2024 reassessment of the deposit. Fork is one of several satellite deposits owned by the company and currently contains an Indicated mineral resource of 20,900 ounces with a grade of 5.3 grams per tonne (g/t) gold, along with an additional Inferred resource of 49,500 ounces grading 5.2 g/t gold.

The current program targets a low-plunging zone of mineralization that previous studies have shown to have a footprint of 400 meters by 250 meters. According to the company, the average thickness of this zone is estimated at about 2 meters based on existing core length intercepts.

The company highlighted the near-surface nature of the mineralization, with planned drill holes averaging 170 meters in depth. The proximity to existing underground infrastructure at the Madsen Mine, particularly Level 3 of the McVeigh zone, offers logistical advantages for future development planning.

Shane Williams, President and CEO, stated in the company's news release, "The shallow nature of the deposit will allow for efficient definition drilling from surface and, with its high grades and proximity to existing underground development, it is easy to envision this core zone of Fork becoming part of the production pipeline at Madsen, based on successful infill drilling results."

On November 26, Analyst Paul O'Brien of Velocity Trade Capital said the firm was maintaining its target price of CA$2.05 per share and its Outperform rating for West Red Lake following the company's announcement of the drilling program at the Fork deposit, located 250 meters southwest of the Madsen mine.

Fork, which currently holds a shallow Indicated and Inferred resource of approximately 80,000 ounces of gold, can be drilled from the surface and is situated close to Madsen's existing underground development, which can be extended or connected from Level 3, the analyst said.

"The capital required we expect to be modest (<CA$3.0million, as the 1.2-kilometer connection ramp completed earlier was for ~CA$11 million) and could be quickly added to the mine plan and in production in 2026," O'Brien said. "When also evaluating Rowan and Starratt-Olsen areas along with Fork, this represents a potential hub and spoke system with less reliance on Madsen."

He continued, "Our 2025E NAV/share has changed slightly from CA$2.43/share to CA$2.40/share, while our target remains CA$2.05/share (based on shares outstanding adjustment). Upon commercial production, we estimate re-rating/multiple expansion, decreasing discount rates (from 7.5% to 5%), and the gap between current and fully valued NAV multiples to decrease. The company is currently trading at 0.36x P/NAV (versus blended target multiple of 0.85x, previously 0.84x)."

Madsen's ore production in October increased by 24% compared to September, according to a November 18 research note by Raymond James Analyst Craig Stanley. In the third quarter of 2025, Madsen produced 35.7 kilotonnes of ore with an average grade of 5.4 g/t gold, he noted.

Ore mining rates rose from 435 tonnes per day (tpd) in July to 463 tpd in August. In the latter half of September, the mine achieved 1 kilotonne on several days, including a record 1.4 kilotonnes. The boost in ore production is attributed to mined waste being stored underground since mid-September, allowing trucking capacity to focus on ore transport. Since early August, the mill has processed only directly mined tonnes.

Management anticipates declaring commercial production and providing 2026 guidance in the first quarter of 2026, the analyst said. A pre-feasibility study that combines Madsen with the satellite Rowan deposit is planned for the third quarter of 2026, targeting a production rate of 100,000 ounces per year. Efforts continue to prepare the existing 24-level (1,273 meters deep) shaft for production.

Raymond James rates the stock Outperform 2 with a CA$1.75 target price, a more than 108% increase at the time of writing.

¹Institutions own about 30% of West Red Lake Gold, while management, insiders, and advisors hold around 10%. The remaining shares are held by retail investors. The company's market capitalization is CA$408.21 million, with a 52-week stock price range of CA$0.54-CA$1.18.

Dryden Gold Corp.

Dryden Gold Corp. (DRY:TSXV; DRYGF:OTCQB; FSE: X7W) hosted a webinar on December 5 to provide a comprehensive update on its 2025 exploration activities and outline its priorities for 2026 across its 702-square-kilometer Dryden Gold Project in Ontario, Canada.  

Company leaders, including CEO Trey Wasser and President Maura Kolb, discussed technical advancements, drilling highlights, and structural interpretations developed over the year, with a continued emphasis on the Gold Rock Camp and emerging regional targets at Hyndman and Sherridon.

The 2025 program concentrated heavily on the Gold Rock Camp, with about 55% of the exploration budget dedicated to expanding the Elora Gold System. According to Kolb, the discovery of a third deformation event, termed "D3," was a significant development that allowed the team to more accurately target high-grade gold zones and predict mineralization patterns. The updated structural model also identified multiple parallel zones within the same footprint, indicating a broader system of stacked gold-bearing structures. Drill results released in 2025 included intercepts such as 301.67 g/t gold over 3.9 meters and 55.35 g/t over 3.5 meters in new parallel mineralized zones discovered due to this updated structural understanding. In the Elora Shear area, revised interpretations highlighted wider, higher-grade parallel structures that were unrecognized in earlier mapping and drill campaigns.

In addition to Gold Rock, Dryden Gold continued early-stage testing at Mud Lake, a target located 2 kilometers northeast, where high-grade grab samples and outcropping shear zones have supported further exploration planning. The company also reported initial drill results from the Sherridon target, located in the southern portion of the land package. These included 1.28 g/t gold over 19 meters and anomalous gold values extending up to 136 meters in three drill holes.

The company's third regional focus, the Hyndman target, will see its first drill program in early 2026. Surface and channel samples from this area, hosted in a granodiorite body, have returned grades up to 34.8 g/t on a surface sample and 23.32 g/t over 2.8 meters from channel samples. Hyndman is situated along the TransCanada Highway and is considered highly accessible for year-round exploration.

Financially, Dryden Gold reported a treasury of approximately US$6 million at the time of the webinar. Additionally, the company has 38.5MM 30-cent warrants expiring at year-end. The company could raise an additional US$11.5 million if all the warrants are exercised, with another US$1.5 million potentially coming from top-up rights held by strategic investor Centerra Gold. CEO Trey Wasser stated that full warrant exercise could leave the company with a US$20 million treasury entering 2026, which would support a significantly expanded drill program.

On December 11, Brien Lunden of Gold Newsletter said the company's 2025 program has demonstrated that its Gold Rock project is not just a single-zone system but an emerging camp-scale opportunity with multiple high-grade structures recurring across the Manitou-Dinorwic deformation zone.

The latest discoveries at Mud Lake, located two kilometers northeast of the main Gold Rock trend, confirm the structural periodicity that Dryden's geologists have been modeling, Lundin said. This is highlighted by a 43.1 g/t gold intercept over 0.5 meters and surface samples up to 93 g/t gold in a shear zone similar to the Elora system. Alongside the company's major 2025 breakthroughs at Elora, Dryden has now demonstrated the size, geometry, and repetition needed to support a true district-scale gold camp thesis.

From the high-grade spring discovery at Pearl through to the continuity now demonstrated between Jubilee and Pearl, Dryden has the beginnings of a multi-structure, multi-kilometer, high-grade domain that remains largely untested below 200 meters, he said. Taken together — Mud Lake, Elora, Big Master, and the early successes at Sherridon and Hyndman — Dryden's 2025 program has delivered on its stated exploration goals. The company is now positioned to drill aggressively in 2026 with a fully funded program aimed at expanding both scale and continuity across the Gold Rock Camp, the expert noted.

"I initiated my coverage of Dryden once I became convinced that its technical team had gotten a handle on the somewhat complicated geology," Lundin wrote. "Their grip on that handle has only gotten firmer, and I expect bigger news and higher grades in next year's work. Still, we've got a lull in news flow ahead, so we'll relegate Dryden to a hold for now."

In a November 26 update, Jeff Clark of The Gold Advisor reiterated his Buy rating on Dryden Gold, citing early success at the Mud Lake target and continued structural validation across the Gold Rock Camp.

"Taken together, this week's news adds another solid piece to what has already been a very strong year for Dryden," he wrote. Clark added that the company enters 2026 with "more targets, more structural validation, more scale, and more geological confirmation than it had 12 months ago," and maintained an overweight position in the stock, stating, "I see a lot of upside potential still for this company."

On October 16, Ron Wortel of Couloir Capital raised his price target on Dryden Gold to CA$0.85. In his report, Wortel cited structural evidence of stacked gold-bearing zones across the Elora Gold System, which spans approximately one kilometer. He identified the Gap Hole discovery as a key development, linking the Elora and Big Master systems and suggesting further mineralization toward the Paymaster area.

The report further noted Dryden's CA$7.82 million LIFE financing, which allowed Centerra Gold to maintain its 9.9% equity position. Wortel concluded that the company was progressing on its stated milestones and had delivered strong technical results during the 2025 campaign.

¹Management and insiders hold 6.38% of Dryden, while strategic entities own 53.82%. Centerra Gold Inc. (CG:TSX; CADGF:OTCPK) holds a 9.96% stake, and Alamos Gold Inc. (AGI:TSX; AGI:NYSE) owns 11.93%. Euro Pacific Asset Management LLC has a 3.79% share.

There are 193 million shares in circulation. Its market capitalization is CA$58million, and it trades within a 52-week range of CA$0.395 to CA$0.105.

NexGold Mining Corp.

NexGold Mining Corp. (NEXG:TSX.V; NXGCF:OTCQX; TRC1:FSE) has secured final federal approval for its Goldboro Gold Project in Nova Scotia, completing all major permitting requirements before construction begins.

On November 4, 2025, the company announced that Fisheries and Oceans Canada had granted the Fisheries Act Authorizations (FAAs), the last essential permits needed for the project to proceed. These federal approvals follow the project's Industrial Approval from the Government of Nova Scotia, issued in August 2025.

According to NexGold President and Chief Executive Officer Kevin Bullock in the announcement, "Having received our Industrial Approval from the government of Nova Scotia in August, the receipt of the FAAs announced today provides NexGold with the last key permits required to advance towards construction and operations."

The Goldboro Gold Project now holds both federal and provincial approvals, including the Environmental Assessment (August 2022), Mining and Crown Leases (May 2025), Schedule 2 Amendment (July 2025), and Industrial Approval (August 2025). With all key permits in place for construction and operations, the project is poised to become one of the next producing gold mines in Atlantic Canada.

The company was recently identified as one of 12 on Red Cloud Securities' 2026 Endangered Species List, marking it as a priority takeover target in the current equity market, according to a thematic note from December 2. "In our opinion, NexGold's two development assets offer a would-be acquirer the opportunity to create or enhance a growth pipeline in one fell swoop," wrote Ron Stewart, the Red Cloud analyst covering the company.

Red Cloud has set a target price of CA$4.30 per share for NexGold, which was trading at approximately CA$1.55 per share at the time of Stewart's report. This suggests a potential return of 177%. NexGold remains a Buy.

Stewart outlined the reasons NexGold made Red Cloud's Endangered Species List: NexGold owns two development-stage gold assets, Goldboro in Nova Scotia and Goliath in northwestern Ontario, allowing an acquirer to obtain both in a single transaction, thereby creating or enhancing a growth pipeline. The Canadian explorer-developer also has a third, earlier-stage asset, Niblack, a copper-gold-silver-zinc volcanogenic massive sulphide project in southeast Alaska, which hosts 400,000,000 pounds of copper equivalent in Indicated and Inferred mineral resources.

Goldboro and Goliath are located in Canada, a premier mining jurisdiction, and both projects are well advanced. Goldboro hosts 1,100,000 ounces (1.1 Moz) of contained gold in Probable and Probable (2P) mineral reserves and is fully permitted for construction. Goliath contains 1.3 Moz of gold and 1.7 Moz of silver in its 2P reserves. Both projects are expected to cost about CA$300–350M to build, based on current studies, a manageable investment for a mid-tier company. Together, they are projected to produce about 200,000 ounces annually. "Goldboro represents the most likely first cab off the rank and could begin commercial production as early as 2028," Stewart wrote. Both projects have "excellent" potential to increase their reserves and extend their mine life. NexGold has already demonstrated this through the combined mineral reserves of both projects, totaling about 2.4 Moz out of a 6 Moz total mineral inventory. Additionally, recent drilling at Goldboro has extended mineralization to the east and at depth. NexGold has worked diligently to develop strong, supportive relationships with the First Nations and local communities, who endorse the current development plans and timelines.

According to Stewart, upcoming catalysts for NexGold include an updated Goldboro mineral resource estimate, ongoing Goliath permitting and optimization, and an updated Goldboro feasibility study.

¹Management and insiders own 2% of NexGold.  Institutions and strategic investors, including Frank Giustra, who owns 5%, own 61% of the shares in the company.      

NexGold has 241.47 million shares issued and outstanding and a market cap of CA$412.92 million. It trades in a 52-week range of CA$0.61 and CA$1.82.