Close menu




May 27th, 2020 | 14:38 CEST

B2Gold, Barrick, Desert Gold Ventures - Gold rush in West Africa

  • Gold
Photo credits: pixabay.com

Interest rates in the G20 countries are historically low. Those who have cash in their bank accounts receive low interest rates at best or even have to pay a penalty. This situation will not change in the foreseeable future. On the contrary, the central banks' measures to stop the Corona Pandemic are expected to increase inflation and reduce purchasing power. Gold and shares of companies that participate in the value chain of the precious metal are a classic hedge for wealth and offer protection against slow devaluation.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA25039N4084 , CA11777Q2099 , CA0679011084

Table of contents:


    Nick Luksha, President, Prospect Ridge Resources
    "[...] As we look at four or more zones in more detail from the beginning, investors can expect a continuous news flow that will underscore our vision of the Holy Grail project as a giant opportunity. [...]" Nick Luksha, President, Prospect Ridge Resources

    Full interview

     

    Fear of devaluation will increase

    The current package of measures by central banks around the world is with around USD 9 trillion, is more than four times as large as the concerted activities during the financial crisis in 2008, which amounted to around USD 2 trillion. Following the financial crisis, the price of the troy ounce of gold rose from below USD 800.00 to over USD 1,900.00. It is therefore hardly surprising that Bank of America is predicting a potential gold price of USD 3,000.00 per troy ounce for 2021.

    Producers start first

    At the moment, various sectors are already in recovery mode and their stocks are rising, while the potential of gold company stocks is not yet in the public eye. Given that the gold price is expected to continue to rise and gold producers are already achieving high margins, it is only a matter of time before the run on gold stocks begins. Usually the shares of the well-known companies such as B2Gold, Barrick and Newmont rise first. However, the multiplication potential of these giants is limited due to their size.

    Value driver is exploration

    If you want to speculate that the investment will more than double or multiply, you should take a look at the exploration scene near major producers. West Africa is where the gold producers B2Gold and Barrick are located and in their neighbourhood are the exploration companies Desert Gold Ventures and Roscan Gold. The projects of these two explorers are mostly located in the west of Mali, the country with the fourth largest gold production on the continent. More than 2.1 million troy ounces of gold were produced in Mali in 2018.

    Big, successful and unnoticed

    While Roscan Gold's share price has risen from CAD 0.12 to more than CAD 0.45 since January 2020 and most recently had a market capitalization of more than CAD 75 million at CAD 0.38, Desert Gold Ventures' share price remains unchanged at CAD 0.145 and has a market capitalization of less than CAD 16 million. Desert Gold yesterday announced a drill program to expand on the discoveries made to date and possibly discover additional gold deposits.

    Takeover candidate in case of success

    Historically, the company has reported gold at 3.52 g/t Au and 6.28 g/t Au on its approximately 400 square kilometre properties. Desert Gold Ventures' project is reportedly the largest contiguous area in the region not yet in production. Therefore, it is expected that the awareness of Desert Gold will increase in the coming weeks and months.

    Management is aiming for 1 to 6 million ounces of gold in the areas. Usually exploration companies with deposits of this size are taken over by experienced producers. As a guide for a takeover price, the price is around USD 100 per ounce in the ground. A perspective for Desert Gold shareholders that may be worthwhile.


    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

    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.

    About the author



    Related comments:

    Commented by Fabian Lorenz on November 29th, 2023 | 10:00 CET

    Sell Varta shares? Positive news from JinkoSolar and Manuka Resources

    • Mining
    • Gold
    • renewableenergies
    • Solar
    • Batteries

    Is the Varta share price party over again? The shares of the former German battery darling have gained around 30% in value over the past six months. But now analysts are advising to sell. JinkoSolar's management had hoped for more buying when it announced the dividend at the end of September. While this was not the case, shareholders can at least look forward to a payout next week. Manuka Resources is currently managing the balancing act between positive cash flows from the sale of gold and investments in resource expansion. The Company is sitting on another potential "treasure" with a project for battery metals. Is the share undervalued?

    Read

    Commented by Stefan Feulner on November 29th, 2023 | 09:55 CET

    Aixtron, Blackrock Silver, Coinbase - Ready for the year-end rally

    • Mining
    • Gold
    • Silver
    • crypto

    Bets are increasing that the US Federal Reserve may have at least paused to raise interest rates further. This prompted the gold price to reach a six-month high of USD 2,016 per ounce. As with its little brother silver, the signs point to further price rises in the short term. The world's largest cryptocurrency, Bitcoin, even reached a new high for the year of over USD 38,000. Optimists are already anticipating prices well above the USD 50,000 mark.

    Read

    Commented by André Will-Laudien on November 27th, 2023 | 07:00 CET

    Turnaround Special: 60 billion financial hole - Not with us! TUI, Desert Gold, Bayer and Lufthansa - Get in now!

    • Mining
    • Gold
    • travel
    • Pharma

    When the stock market is booming almost every day, it is easy to lose sight of the loss-makers of 2023. But it does not have to continue like this! The market regularly rotates through segments, so today's losers will soon be the winners again. This is already evident with TUI and Lufthansa, who are slowly emerging from the Corona shock. Bayer is halting a promising drug and still has to deal with legal disputes. The current situation and the rising gold trend speak in favor of Desert Gold. Let's take a look at the values of tomorrow.

    Read