August 26th, 2020 | 05:51 CEST
B2Gold, Barrick, Blackrock Gold - who doubles its value the fastest?
Since Warren Buffett and his investment company Berkshire Hathaway joined Barrick, investors and media have tended to change their minds about the world's oldest currency. In the past, the US star investor has made no secret of the fact that, in his opinion, the expense of gold mining and subsequent monitoring is, in a sense, insane. In the meantime, however, the oracle from Omaha seems to have come to the conclusion that there is a lot of money to be made as a producer at the current price level and that demand for the precious metal will remain stable in the future due to the measures taken by the central banks.
time to read: 2 minutes
|
Author:
Mario Hose
ISIN:
CA0679011084 , CA11777Q2099 , CA09258M1014
Table of contents:
Author
Mario Hose
Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.
Tag cloud
Shares cloud
Gold supply will decline
The gold market is becoming increasingly important. While central banks around the world are working with politicians to maintain social peace through measures, the money supply has been increased significantly. A major advantage of gold, on the other hand, is that it cannot be printed, and in 2020 it will even reach the historic peak of production. Barrick's experts estimate that approximately 118 million ounces will be produced this year and the annual production volume will drop to below 65 million ounces by 2029. The reserves of the largest producers have already decreased by about 34% since 2012.
Exploration provides for new supplies
Producers such as B2Gold and Barrick can achieve a high profit margin within the current gold price. The disadvantage is, however, that each ounce can only be sold once. For this reason, these companies must continuously ensure that the amount of reserves secures future sales. In this context, exploration companies such as Blackrock Gold come into play. The company has properties in the state of Nevada and is exploring for gold deposits. As soon as a critical quantity of the precious metal can be proven, the interest of the large producers in a takeover increases.
Financially well positioned
Blackrock Gold has raised a total of approximately CAD 12 million in fresh money since June 2020 to explore the areas in Nevada. One of the most prominent investors is Eric Sprott, a commodities expert who invested CAD 5 million. About 100 years ago, the state was already experiencing a gold and silver hype. Due to this history, companies can still make plans today. The region around the town of Tonopah is one of the most attractive silver areas in North America.
Successful drilling program raises expectations
Blackrock has made several interesting discoveries during the current drilling program. Drill hole TW20-001 intersected 965 g/t silver equivalent over 29 metres and another new vein with a grade of 2,198 g/t silver equivalent over 3 metres was discovered. A total of 15,000 metres of drilling is planned in the Tonopah region to confirm 2.5 to 6.0 million tonnes of silver equivalent at a grade of 1,300 to 2,100 g/t.
Several million ounces of gold
Four target areas have already been identified on the Silver Cloud project, where about 3,500 meters of drilling is planned to be completed starting in September with up to 14 holes. The company believes that the area has a potential of several million ounces of gold. With a market capitalization of approximately CAD 120 million, the company still has sufficient potential with further discoveries, making it more attractive to potential investors. Barrick has now achieved a market capitalization of CAD 68 billion and B2Gold of CAD 6.8 billion.
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.
