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Ryan Jackson, CEO, Newlox Gold Ventures Corp.

Ryan Jackson
CEO | Newlox Gold Ventures Corp.
60 Laurie Crescent, V7S 1B7 West Vancouver (CAN)

info@newloxgold.com

+1 778 738 0546

Newlox CEO Ryan Jackson on building a green gold producer with a rapid growth trajectory


Nick Mather, CEO, SolGold PLC

Nick Mather
CEO | SolGold PLC
1 King Street, EC2V 8AU London (GB)

emichael@solgold.com.au

+44 20 3823 2125

SolGold CEO Nick Mather on building a major gold and copper mining company


Jared Scharf, CEO, Desert Gold Ventures Inc.

Jared Scharf
CEO | Desert Gold Ventures Inc.
4770 72nd St,, V4K 3N3 Delta (CAN)

jared.scharf@desertgold.ca

Desert Gold Ventures CEO Jared Scharf on West Africa and its potential


19. November 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 by Nico Popp


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

Author

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


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.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

26. November 2020 | 11:36 CET | by Nico Popp

Osino Resources, Barrick Gold, Newmont: So are the doublers in Africa?

  • Gold

When it comes to growth, professional investors look to Africa as well as Asia. In 2018 Rwanda and Guinea were the world's fastest-growing economies: the economies of both countries grew by 8.6%. Even countries like Benin, Ethiopia, Gambia or Burkina Faso are still among the top 20 in the world. But what is the reason for high growth in Africa anyway? In addition to a young and rapidly growing population, which drives the domestic market, education from a level of training is also an essential factor. Only in this way can emerging economies also participate in more complex value creation. Legal security and stability are also important factors when foreign investors look to Africa. One country that is considered highly developed and legally secure within Africa is Namibia.

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16. November 2020 | 09:48 CET | by André Will-Laudien

Velocity Minerals, B2Gold, Delivery Hero: We take up the fight!

  • Gold

The news of a vaccine against Corona with a success rate of 90% caused markets to skyrocket since last Monday. While the Dow Jones and the S&P set 500 new records, gold plummeted by as much as USD 118 in one day. Gold's most significant daily drop in more than seven years also wiped out its breakout from a 3-month downward wedge last Friday.

As gold futures closed below USD 1,890 this week on the Comex, the strong sell-off below this support brings with it the possibility that the zone between USD 1,750 and USD 1,800 will be tested again before the correction of the safe-haven metal's large gains finds a significant bottom. The gold futures base of USD 1,800 has technically become a critical support level, an area that dates back to the bull market of 2008.

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13. November 2020 | 12:40 CET | by André Will-Laudien

Pfizer, BioNTech, Desert Gold - inoculate portfolios with gold!

  • Gold

After only three days, disillusionment already! The winners of yesterday are the losers of today. Since Monday's vaccination rocket, the markets have been hanging around up there, looking to see if any more buyers have left the sickbed of the last bear market. Unfortunately, no, the case is rather that airlines are, on average, down 5% again and a battered TUI is looking for further state aid which pushes the price back towards 4 euros. The problematic week began as the Dow rose by 4% to a new record high, and yields on ten-year government bonds shot up by almost 17% in a single day as investors relinquished security. Oil prices rose by 8% as people now believe that the stalled economy is coming back to life.

Meanwhile, the US dollar index rose by about 60 basis points, while even some exotic currencies with higher beta jumped too. Of course, some gold and silver enthusiasts wonder if a vaccine is enough to kill both the Covid-19 virus and the bull market in precious metals as gold and silver lost between 5 and 9%. However, if you look at the markets today, the chances are that smart money, in particular, will start to buy the dips in the precious metals.

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