Close menu




November 19th, 2020 | 09:27 CET

AngloGold Ashanti, Blackrock Gold, Newmont: Investing in gold - but how?

  • Gold
Photo credits: pixabay.com

Gold investors are in a comfortable situation: The precious metal has lost a little from its highs, but still shows excellent relative strength at the USD 1,900 an ounce mark. Although news of vaccines has taken some pressure off the markets in the short term, the big picture for gold investors remains intact. The crisis of the century requires trillion-dollar measures. This flood of money, in turn, increases the risk of further problems and could drive inflation. Contrary to the opinion of many investors, it is not inflation that drives the gold price, but their expectations. Given the measures already taken and those still in the pipeline by governments and central banks, there is every reason for increased inflationary expectations. But how does an investment in the expected gold boom succeed?

While grandmother still hid bars and coins under the bed, today's investors can resort to gold ETCs. These usually securitize physical gold and can also be held in custody at attractive fees and actively traded. Yield hunters nevertheless prefer to use gold shares. The reason: stocks such as AngloGold Ashanti, Blackrock Gold or Newmont usually offer leverage on the gold price. Depending on how a Company develops, the gold reserves in the ground are also valued.

time to read: 2 minutes | Author: Nico Popp
ISIN: CA09258M1014 , ZAE000043485 , US6516391066

Table of contents:


    Ryan Jackson, CEO, Newlox Gold Ventures Corp.
    "[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

    Full interview

     

    AngloGold Ashanti: Slowed down by the pandemic

    AngloGold Ashanti is one of the largest gold mine operators in the world and is particularly well-positioned in Africa. The rising gold price has also been good for the share: on a one-year horizon, the return on investment is still around 10%. Although this is less than the gold price has risen during this period, AngloGold Ashanti is also in a unique situation. The Company is restructuring itself, buying new projects here and there, and separating itself from other, less lucrative projects.

    Overall, however, the Company's production costs are still considered too high, but being in a pandemic also means that restructuring cannot proceed as quickly. Geologists and the management team must travel to visit new projects, but travel is only possible to a limited extent during the pandemic and, above all, is challenging to plan. This being one of the reasons why the share price has fallen under the wheels in recent months. AngloGold Ashanti is the best example that the price of a gold producer can also lag behind the development of the precious metal.

    Blackrock Gold has two irons in the fire

    The situation is different with Blackrock Gold. Within the last year, the price has tripled. In reflection of this, the price decline of the past months no longer looks dramatic - on a three-month view, the share price fell by almost 50%. Blackrock Gold operates two precious metal projects in the US state of Nevada and is currently working to define the deposits more precisely utilizing exploration drilling. During the summer the market celebrated drill results of 26g/t gold or 2,030 g/t silver.

    Currently, Blackrock Gold has commenced a drill program on its Silver Cloud property in Nevada that is to be completed by the end of the year. The goal is to demonstrate that the property has similarities to the geology of the nearby Hollister Mine operated by Hecla. Blackrock had previously announced that it might seek a separate public offering of its Silver Cloud property. The Tonopah flagship project is also progressing. Into 2021, Blackrock intends to drill gold for precious metals. Given the activities on two projects and the future Company results, Blackrock Gold's share could be attractively valued again after the price setback of the past months.

    Newmont under pressure - small companies could benefit

    The Newmont share is also a perennial favourite when it comes to gold. The world market leader has acquired and integrated Normandy, Franco-Nevada and Goldcorp in recent years. Most recently, Newmont increased its dividend and reported a high free cash flow. Despite the pandemic, the established Company is earning well from the high gold price. The good earnings show in the share price, which has risen by around 60% on a one-year horizon.

    Recently, however, the share price lost some ground, and although Newmont is doing well, such companies are still under pressure to replace depleted reserves. The pandemic makes this task more difficult. Beneficiaries could be smaller companies in the sector that can develop their projects in the shadow of the crisis without having to fear takeover bids at an early stage. For investors, these smaller companies could be an exciting niche in which to invest with foresight.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Nico Popp on April 23rd, 2025 | 07:00 CEST

    The end of the dollar? Deutsche Bank, Newmont, and Desert Gold

    • Mining
    • Gold
    • Investments

    The independence of the central bank is a valuable asset that is highly valued by investors. Once again, US President Donald Trump has shaken the independence of the Fed and raised the possibility of dismissing US Federal Reserve Chairman Jerome Powell. The reason: While the ECB cut interest rates on Maundy Thursday, Powell wants to wait and see how the tariffs affect the dollar zone before he adjusts interest rates. Powell's dismissal could have fatal consequences for the capital markets.

    Read

    Commented by Nico Popp on April 22nd, 2025 | 07:40 CEST

    How hedge funds are now betting on gold: Amazon, Barrick Gold, and Golden Cariboo Resources

    • Mining
    • Gold
    • ecommerce
    • Investments

    "Asset managers and hedge funds are seeking refuge in gold," read the headline in Handelsblatt in the week before Easter. But what is driving the rush for the precious metal? In addition to the considerable uncertainty surrounding the trade tariff dispute, investment professionals are also turning to safe havens due to growing geopolitical risks. But what options do investors have beyond coins and bars? We look at how investors can indirectly bet on the precious metal through stocks.

    Read

    Commented by Fabian Lorenz on April 22nd, 2025 | 07:00 CEST

    Gold price soon to reach USD 4,000! Profit with gold gem Tocvan Ventures! Share about to be taken over?

    • Mining
    • Gold
    • Investments

    Will the tariff hammer be followed by a currency war? Speculation about the devaluation of the US dollar is already rife on the capital markets. One sign of this is that central banks are continuing to buy gold on a massive scale. After the price per troy ounce easily surpassed USD 3,300 last week, analysts are now targeting the USD 4,000 mark. The current environment makes it clear that gold belongs in every diversified portfolio. Tocvan Ventures is an exciting opportunity to jump on the gold bandwagon. The project in Mexico is at an advanced stage and is set to be developed into a world-class operation. After more than four years of exploration work, the project is expected to be given the green light in 2025. The share price has finally taken off, still has a lot of upside potential, should receive mining approval this year and offers takeover speculation.

    Read