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Jim Payne, CEO, dynaCERT Inc.

Jim Payne
CEO | dynaCERT Inc.
101-501 Alliance Avenue, M6N 2J1 Toronto, Ontario (CAN)

jpayne@dynacert.com

+1 416 766 9691

dynaCERT CEO Jim Payne on attractive hydrogen opportunities


Sebastian-Justus Schmidt, CEO and Founder, Enapter AG

Sebastian-Justus Schmidt
CEO and Founder | Enapter AG
Ziegelhäuser Landstraße 1, 69120 Heidelberg (D)

info@enapterag.de

Enapter AG CEO and founder Sebastian-Justus Schmidt on the future of hydrogen


John Jeffrey, CEO, Saturn Oil & Gas Inc.

John Jeffrey
CEO | Saturn Oil & Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary, AB (CAN)

jjeffrey@saturnoil.com

+1-587-392-7900

Saturn Oil & Gas CEO John Jeffrey on the future of the company and ESG


27. May 2020 | 14:38 CET

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 by Mario Hose


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

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


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.


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.

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.


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  • Gold

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Sibanye-Stillwater, Desert Gold Ventures, Barrick Gold - Take advantage of the consolidation to enter quickly!

  • Gold

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Fokus Mining, Yamana Gold, HelloFresh: The lockdown can come!

  • Gold

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