May 27th, 2020 | 14:38 CEST
B2Gold, Barrick, Desert Gold Ventures - Gold rush in West Africa
Table of contents:
"[...] 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
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.
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.
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.