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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


15. September 2020 | 11:00 CET

B2Gold, Barrick Gold, Desert Gold: Did Warren Buffett bet on the right horse?

  • Gold
Photo credits: pixabay.com

The price of gold has stabilized above the USD 1,900.00 per troy ounce mark in recent weeks. Against the background that the Corona Pandemic is not slowing down and that a second wave is becoming measurable in many places, the actions taken by governments and central banks are continuing cheerfully, thus ensuring further demand for the world's oldest currency. Those who want to protect their assets are probably best off buying shares in a gold company like Warren Buffett, and for those who can't decide, there is also a solution.

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


Gold becomes attractive for value investors

The US-investor Warren Buffett has set an example with his investment in Barrick Gold. In the past, the experienced and successful CEO of Berkshire Hathaway has always avoided gold companies, as the shares of other industries offered him ever more sensible investment opportunities in connection with their operational possibilities. However, due to the rising gold price, producers like B2Gold and Barrick Gold are making real money and can also pay dividends, a new fact that Buffett does not like to ignore.

Precious metal becomes rarer

According to its own information, Barrick Gold expects that in 2020 the highest amount of gold within one year will be brought to the market by the largest producers, at around 118 million ounces. From then on, an annual decline is to be expected. In 2029, only a quantity of about 65 million ounces of gold is expected, which corresponds to a decline of 45%. There are several reasons for this development. Firstly, the attractive areas are already in production and in addition it is becoming more and more costly to develop new areas. Regulations and restrictions often make it difficult for the industry to expand.

Takeover candidate in West Africa

Given that the reserves of the largest producers have decreased by around 34% since 2012, these mining companies must continuously look for attractive supplies. Each ounce of gold can only be mined and sold once. For this reason, the producers also like to look at attractive takeover targets in their neighbourhood. In West Africa, B2Gold and Barrick Gold each operate gold mines. Not far away, the exploration company Desert Gold Ventures is also active in the areas covering more than 400km2.

Further drill results expected

The company has reached several milestones in recent weeks. Firstly, Desert Gold has raised more than CAD 6.8 million in fresh capital from investors at a price of CAD 0.28, and in addition, management has confirmed the assumptions made in the latest drill program with regard to expected deposits and further discoveries have been announced. Final drill results from the latest program are expected to be released shortly. Work on the projects will resume in approximately six weeks. With the fresh capital, the Company is well positioned for the coming drilling season.

The profit lies in purchasing

On the stock market, however, Desert Gold's share price is in a downward spiral and has lost significant value in recent weeks due to profit-taking. Approximately six weeks ago, the shares changed hands at over CAD 0.30. Despite the successful financing round at CAD 0.28, the share price has since fallen to CAD 0.17. Volatility is a side effect on the stock market and with good timing an attractive yield can be achieved. Desert Gold's management has not only reported good drill results, but the company now has probably the highest cash position since its incorporation. Against this background, it is probably only a matter of time until the share price returns above CAD 0.30. Those who cannot decide on a particular company should diversify.


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.


Related comments:

14. January 2021 | 18:43 CET | by André Will-Laudien

Blackrock Gold, Barrick Gold, Sibanye Stillwater: In gold, we trust!

  • Gold

Why does one need precious metals at the moment? For hedging? No question, we are currently in the biggest liquidity boom since the turn of the millennium, and every day there are new highs on the stock markets. Usually, one would say that there is no need for hedging. Nevertheless, a sensible spread across all sectors makes perfect sense. Right now, the hot topics are hydrogen, e-mobility and copper. When discussing mountains of debt and when inflation fills the gazettes again, then the need for precious metals is back immediately. Therefore, one can state: In asset price inflation, which is undoubtedly taking place presently, gold, silver and platinum will also potentially see a sharp price increase! In gold, we trust - at the latest if the Bitcoin loses 50% again!

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12. January 2021 | 10:18 CET | by André Will-Laudien

Osino Resources, FuelCell, Nikola: Things are moving fast!

  • Gold

Yesterday saw a not-so-surprising move in the super-shooter Bitcoin (BTC). Within 12 hours, the cryptocurrency corrected from levels above USD 40,000 down to USD 30,600, a daily loss of 25%. This correction was a move that had been in the air for a long time but was probably not expected at this speed. It is not for nothing that BTC has a calculated volatility of over 100%. However, the bout of weakness once again illustrates the cryptocurrency's high susceptibility to fluctuation. All the great euphoria thus escapes somewhat, but the fan community is likely already ready to fabricate new highs. As a result of the correction, the total market volume of all, currently around 8,225, digital currencies fell back below the one trillion-dollar mark. Last week, the mark had been surpassed for the first time. Speed is more in demand than ever!

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11. January 2021 | 10:08 CET | by Stefan Feulner

Geely, Desert Gold, Li Auto - Incredible development!

  • Gold

The trend towards electromobility and away from combustion engines is developing more and more rapidly. Almost all the electric car manufacturers across the board increased their sales figures by 100% in 2020. With new models and better battery technologies, the old automobile world's replacement is being strongly forced. The big technology groups are now getting into the lucrative electromobility business. In cooperation with Hyundai, Apple is probably making a start and others will follow, giving the industry another considerable push.

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