Close menu




February 10th, 2022 | 13:40 CET

Alerio Gold, Aixtron, Siltronic - The signs point to growth!

  • Gold
Photo credits: pixabay.com

The US Federal Reserve (Fed) has for some time begun to scale back bond purchases massively and will raise the key interest rate at its next meeting in March. Semiconductor manufacturers have indicated that the chip shortage will level off over the course of the year. How will these developments affect commodity prices and cryptocurrencies?

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: Alerio Gold Corp. | CA01450V1040 , AIXTRON SE NA O.N. | DE000A0WMPJ6 , SILTRONIC AG NA O.N. | DE000WAF3001

Table of contents:


    Bill Guy, Chairman, Theta Gold Mines Limited
    "[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited

    Full interview

     

    Alerio Gold - Good prospects

    Experts widely agree that gold has already proven its strength as a crisis asset in the aftermath of the 2020 Corona Crash. At that time, the precious yellow metal rose to an all-time high of just over USD 2,000 per troy ounce. In the meantime, the price has settled around the USD 1,800 mark and entered a sideways movement. There are a few reasons for this. On the one hand, the recent announcements by the Fed in the direction of higher interest rates make gold no longer seem so attractive as an investment. On the other hand, there is currently no excess demand for the precious metal. Moreover, there are other alternative investment opportunities with attractive yield promises with cryptocurrencies.

    But now the good news: Experts do not expect a price decline for gold in the short term but anticipate a further sideways movement at a high level. As a result, current exploration projects continue to promise good profitability. One example is the Canadian junior explorer Alerio Gold. The Company, listed on the Frankfurt Stock Exchange since November 22, 2021, is currently developing two 100%-owned gold projects in Guyana, a small, mineral-rich country in northeastern South America, where industry giants such as Barrick Gold and Newmont are already active.

    The Company has already spent CAD 34 million on constructing a camp, a runway and a jetty for the Tassawinni/Sonne project. In addition, all necessary mining licenses have already been obtained for the project, which has resources of approximately 499,000 ounces of gold (indicated and inferred), according to a study conducted by SRK in 2009. In addition to continuing the exploration program to increase resources, Alerio plans to obtain an environmental impact statement and publish a PEA (preliminary economic analysis) study later this year. So positive newsflow should be provided. In addition, the Company recently announced that it has successfully closed the second tranche of a private placement of approximately CAD 150,000.

    Aixtron - Nervous tech investors

    What is going on at Aixtron, the global leader in MOCVD deposition equipment for the semiconductor industry? Actually, the starting position could not be better at the moment. The global chip shortage forces numerous semiconductor manufacturers to expand their production capacities. This is reflected in the order books of the North Rhine-Westphalian company: the order backlog increased by 80% in the first nine months of fiscal year 2021 compared to the same period of the previous year, sales revenues climbed by 54%, and gross profit by as much as 60%.

    This prompted a large number of analysts to raise their forecasts for Aixtron. Stifel currently sees the price target as much as three euros higher at EUR 19 and changed its investment recommendation from "Sell" to "Hold". DZ Bank (price target: EUR 25, recommendation: Buy) and Barclays (price target: EUR 29, recommendation: Overweight) were even more optimistic. The main drivers are the increasing demand from the data center and 5G infrastructure sectors. However, all the positive prospects do not seem to be taking hold at the moment. The share has barely gained a few percentage points when tech investors, driven by the threat of interest rate hikes in the USA, caused prices to fall due to profit-taking. There is currently no sign of a new upward breakout. Investors are now eagerly awaiting February 24. On this day, Aixtron will present its figures for the past fiscal year.

    Siltronic - Takeover by GlobalWafers collapsed

    After the German Federal Ministry of Economics failed to issue a clearance certificate for the takeover of the Munich-based Siltronic Group, the world's third-largest manufacturer of wafers, by Taiwanese chip supplier GlobalWafers within the set deadline, the takeover is off the table. However, Siltronic's main shareholder, Wacker Chemie, also based in Munich, was not particularly disappointed. Although the takeover could have created a global market leader with strong European roots, the Company believes it is very well positioned on its own for the time being, especially given the current strong growth in demand for semiconductors.

    Analysts share this opinion. The experts already see the Siltronic share at a price of EUR 160 (Jeffries, "buy") and EUR 135 (Berenberg, "buy"). On average, the analysts place the fair price at around EUR 145 - this is how much GlobalWafers were prepared to pay for a share at the end. Given the market data and the well-filled order books of the semiconductor specialist, shareholders should lean back and relax.


    Who will benefit from the current macroeconomic developments in the foreseeable future? Although there is currently nervousness on the stock markets because of the Fed decisions, a look at the past shows that negative effects of such decisions are "forgotten" by the stock market after just 18 days. Other factors are likely to weigh much more heavily. The semiconductor crisis, for example, will keep us busy for a while yet and will provide companies such as Aixtron and Siltronic with solid profits. Most exciting for us is Alerio Gold. Here, risk-averse investors have the opportunity to invest at an early stage and earn disproportionate returns.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Nico Popp on May 24th, 2022 | 10:20 CEST

    Monkeypox: risks and opportunities - Bavarian Nordic, Desert Gold, Varta

    • Gold
    • Monkeypox

    Supply chain problems, energy price chaos and now monkeypox? The list of disturbing news never ends. Investors need to keep a cool head in this market phase. Which construction sites are a permanent burden on the markets, where are only isolated problems still looming, and where are there possibly even surprising potholes? We have taken a close look at three stocks from different sectors. Let's go straight to the monkeypox!

    Read

    Commented by Armin Schulz on May 23rd, 2022 | 12:49 CEST

    BASF, MAS Gold, Plug Power - Shares with great turnaround potential

    • Gold
    • Hydrogen
    • Investments

    The Fear & Greed Index is down to 11, which means nothing other than extreme fear. And there are many areas causing headaches for investors. There is the Ukraine crisis, inflation, rising interest rates in the US, supply chain problems due to zero-COVID policies in China, and fear of recession. However, the S&P has formed a double bottom last week, which raises hope for a turnaround in the markets. Due to the crises, there are currently also opportunities again. We take a look at three potential turnaround candidates.

    Read

    Commented by André Will-Laudien on May 23rd, 2022 | 11:42 CEST

    Share sell-off: TUI, Barsele Minerals, Nel ASA - Buy or sell these stocks?

    • Gold
    • Investments
    • Hydrogen
    • travel

    The sell-off in equities entered a new round in May. With rising inflation, disrupted supply chains and uncertain energy supplies, the risk for investors is increasing as interest rates are now exploding to unprecedented levels in parallel with the highly volatile environment. The 10-year yields on government bonds in Germany and the USA have moved up from near zero to 1.14% and from 1.5% to 3.12%, respectively. Whenever there was a noticeable rise in interest rates for bonds, things became critical on the stock market. At the moment, this is weighing on technology stocks in particular. The DAX and S&P have already lost 20% in the current correction phase. After initial losses, gold is now accelerating. Where are the opportunities for investors?

    Read