Close menu




September 10th, 2020 | 07:06 CEST

AngloGold Ashanti, Newmont, Velocity Minerals: Where does price potential slumber?

  • Gold
Photo credits: pixabay.com

While the German government is thinking about softening the insolvency law even longer than expected and thus keeping many ailing companies alive, central banks make no secret of continuing the path of cheap money they embarked on immediately after the outbreak of the Corona pandemic. As a first reaction, the prices of gold and companies related to the mining of gold climbed significantly. Currently the prices have come back somewhat. Since the basic fundamental situation around the precious metal is still intact, the current phase should be seen in retrospect as a pause for breath. Reason enough to take a closer look at three companies from the gold sector.

time to read: 2 minutes | Author: Nico Popp
ISIN: ZAE000043485 , US6516391066 , CA92258F3007

Table of contents:


    Jared Scharf, CEO, Desert Gold Ventures Inc.
    "[...] We have already discovered 1.1 million ounces of gold on our 440 km2 flagship SMSZ Project and our stock market value is currently around USD 10.60 per troy ounce in the ground. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.

    Full interview

     

    AngloGold Ashanti does not yet convince the market

    AngloGold Ashanti's stock generated a return of 26.6% on a one-year horizon. **The company decided to implement a comprehensive restructuring program even before the outbreak of the pandemic, and although this had a negative impact on the quarterly figures, analysts are convinced that the measures will pay off in the long term. Also in view of the increased gold price, the planned sales of projects should proceed slightly and also have a positive effect on AngloGold Ashanti's cash position.

    It is also a fortunate coincidence that the company will be able to expand production in 2020, which should allow the company to benefit directly from rising prices. However, the stock is not really getting off the ground on the stock markets. Investors are worried that AngloGold Ashanti may no longer have a broad enough base following the sale of further projects.

    Newmont: Vision through exploration

    The mood among investors in Newmont is more optimistic. Higher gold prices have had a direct impact on margins and have brought the company high profits. The company that emerged from the merger of Newmont Mining and Goldcorp has accumulated a number of promising projects over the past few years and is therefore considered to be well positioned for the gold boom. The stock market agrees: Shares of Newmont Goldcorp increased on view of one year by nearly 60%. The announcement of a USD 1 billion share buyback program may also have contributed to creating greater imagination.

    When it comes to vision, Velocity Minerals' shareholders have a clear picture in mind: ideally, the company will bring its gold projects in Bulgaria gradually into production. But the reality is different: Although the company recently released a Preliminary Feasibility Study for its flagship Rozino project, in which the company has a 70% interest, the other projects are still in the exploration stage. For the three satellite projects, Velocity Minerals has options to increase stakes in the event of positive exploration results. **All projects are within truck range of an existing processing plant with a potential of 200,000 ounces of gold annually.

    Velocity Minerals: Production planned for end of 2022

    Although at first glance Velocity Minerals may not appear to have much in common with the likes of Newmont or AngloGold Ashanti - after all, their market capitalization is only around EUR 45 million - at second glance, parallels are apparent. Like Newmont, Velocity has further exploration potential and plans to increase it over the coming months and years. The flagship Rozino project is already further along the road, with Velocity's goal of producing gold by the end of 2022. This clearly communicated company perspective has not yet made the rounds on the stock exchange - the share price is now trading at more or less the same level as a year ago.


    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 Carsten Mainitz on October 21st, 2025 | 07:40 CEST

    Power Metallic Mines, RENK, BYD – An explosive combination! And the winners are?

    • Mining
    • Copper
    • Nickel
    • Gold
    • CriticalMetals
    • Electromobility
    • Defense

    Many topics are dominating the headlines. Peace in Gaza – and soon in Ukraine? This prospect initially put a significant damper on defense stocks – but only temporarily. After just a few days of correction, prices are already rising again. Gold at an all-time high is another major topic being covered in the media. Meanwhile, the geopolitical shifts we were reluctant to acknowledge for far too long are now catching up with many companies: China is cutting the world off from critical raw materials and rare earths. Read here to find out how investors can identify promising high-potential opportunities in this constellation.

    Read

    Commented by André Will-Laudien on October 21st, 2025 | 07:35 CEST

    Gold USD 4,300 and Silver USD 53 – Buying frenzy at Silver North, First Majestic, Nel ASA, and JinkoSolar

    • Mining
    • Silver
    • Gold
    • renewableenergies
    • Solar
    • Energy

    Silver has been shorted by many investment banks for several years because sufficient supply was available from Mexico and other producing countries. The tide has turned. Over the past 12 months, the precious metal has caught up with its big brother gold, gaining 54%. There are several reasons for the scarcity-driven rally: there are only around 250 active silver mines worldwide, compared to around 1,400 gold mines. In addition, silver has massively expanded its importance as an industrial metal: it is indispensable in high-tech, e-mobility, defense, and medical technology. As a result, less and less physical silver is available to investors, while inventories on the futures markets continue to decline. Now is the time to take a position in silver. Alongside industry giants such as First Majestic, Silver North is among the most promising beneficiaries of the new silver boom.

    Read

    Commented by Armin Schulz on October 21st, 2025 | 07:15 CEST

    Barrick Mining and Kobo Resources: Gold as security – Occidental Petroleum: Energy as opportunity

    • Mining
    • Gold
    • Commodities
    • Oil
    • Gas
    • Energy

    In an era of geopolitical upheaval and monetary policy experimentation, tangible assets are gaining strategic importance. Gold remains a fundamental store of value, while the transformation of the energy sector is driving demand for critical raw materials. Even oil, despite volatile prices, retains its status as a geopolitical lever. In this environment, companies with access to these resources are well-positioned. Three players are in focus: the gold producer Barrick Mining, the exploration specialist Kobo Resources, and the oil and gas company Occidental Petroleum.

    Read