March 10th, 2021 | 09:43 CET
B2Gold, Yamana Gold, Barrick Gold, Goldseek Resources - The gold turnaround!
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"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
B2Gold - Convincing performance in the last year
When thinking about a gold mid-tier producer, B2Gold should be on your mind. The Canadian Company has been among the best positioned gold producers for years. The Company reported its 2020 results at the end of February, and according to the data, full-year production was 1,040,737 ounces of gold. A record!
Consolidated revenues from the sale of gold in 2020 amounted to a record USD 1.79 billion (+55%), and cash flow increased to over USD 900 million. Very favorable production costs remain. They amounted to a sustainably calculated USD 788 per ounce of gold sold. As of December 31, B2Gold held cash and cash equivalents worth USD 480 million.
After prices of over EUR 6 in the summer of 2020, the B2Gold price most recently consolidated to EUR 3.74, which was likely the desired consolidation. Get in now!
Yamana Gold - Good figures, but forecast lowered
Yamana Gold has also delivered its annual figures. Q4 net income was USD 103 million, or USD 0.11 per share, compared to a net income of USD 14.6 million, or USD 0.02 per share, a year earlier. Strong free cash flow lowered net debt by USD 323 to USD 566 million for the year. Yamana reported full-year 2020 production of 901,155 gold-equivalent ounces, exceeding its full-year guidance of 890,000 ounces. Yamana is also one of the mid-tier producers.
The year 2020 went quite well in this respect, but for 2021 they have to row back. The Company management immediately followed up the good figures with a reduction of the current outlook. Accordingly, the updated forecast for 2021 is slightly below the estimate from last fall, which is exclusively related to the Covid-19-related restrictions of the Cerro Moro property. The mine's costs had to be adjusted upwards accordingly on a risk-adjusted basis, and it is not yet clear how high the increase will be.
However, good news comes from the project side. Yamana Gold and Agnico Eagle have waved through the construction of the Odyssey joint venture at the Canadian Malartic mine in Quebec for CAD 1.7 billion. The underground project will have a life to 2039, with an average yield of 545,000 ounces per year. The Yamana share price has consolidated about 45% since its high and appears well protected at this level.
Barrick Gold - The price comes back into gear
Over the last days, we have pointed repeatedly to the strength of the gold shares to the precious metal. Now also the boss of Barrick expressed himself to the current situation. Mark Bristow spoke in the press about the gold price and the economy. In his view, there is currently an "exuberance" in the financial markets, with investors rushing into assets that have no real value. He is alluding to the utopian valuations in the technology sector. In particular, to companies that already receive valuations in the billions with the smallest of sales. At the same time, he said, the price of gold is poised for another push higher. "It's similar to what happened after 2008 when the market wished everything would go back to normal but didn't yet know the full impact."
"The liquidity that was provided between 2009 to 2011 was trapped in the banks. This time, however, it has arrived in the market," Bristow said. That says it all about current events. Asset-price inflation is the technical term that results from the flooding of central bank money. In times like these, there are always reminders of the value of gold. Put some Barrick Gold on your side. The stock is already turning upward.
Goldseek Resources - On the trail of the majors
If you think of the major gold producers, you will soon come across Canada's Goldseek Resources. Goldseek takes advantage of the good groundwork of the majors and invests in nearby claims. The probability of a hit increases enormously, and the infrastructure conditions are usually already in a sound stage of development. If a good drilling result is achieved, it is possible to approach the producers directly and conclude purchase agreements.
Goldseek Resources currently has five promising projects, four of which are located in the gold stronghold of Quebec and one property in Ontario. The Hemlo camp in Ontario is located just 4 km north of the Hemlo mine operated by Barrick Gold. One of the claims is also near Wallbridge Mining, which is on the Detour Gold Trend. It is precisely there that there are new drill results that allow an indirect conclusion on the neighboring Goldseek properties.
Wallbridge Mining has already found strong gold intercepts on the Fenelon property in the Tabasco-Cayenne and Area 51 intercepts. Just 30 kilometers away from Fenelon is the advanced exploration zone Beschefer, which can be acquired 100% by Goldseek through an option. The Beschefer project covers approximately 962 acres and is located in the Northern Abitibi greenstone belt, 14 km east of the past-producing Selbaie polymetallic mine. The area has been explored in the past primarily for volcanogenic massive sulfide deposits, similar to the Matagami camp and the Selbaie mine itself.
Goldseek Resources is convincing with its approach but is still relatively new to the Canadian stock market. With CAD 7.8 million, the capitalization is also only at the beginning. The early bird catches the worm, currently at CAD 0.27.
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