July 9th, 2020 | 07:41 CEST
Ballard Power, NEL ASA, Plug Power - what comes after hydrogen now?
Table of contents:
"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
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.
Money loses value
One of the measures taken by politicians and central banks worldwide to combat the effects of the corona pandemic was to drastically increase the money supply. The consequences are obvious, the value of money is declining. Creditworthy investors have the opportunity to borrow cheap money from banks and invest in real estate. However, the danger of this form of investment is that the real estate is logically not movable and for this reason it is always subject to the influence of politics. Dues, taxes or expropriation, as already discussed in Berlin on a political level, can become a brake on returns or a problem.
Central banks cannot print gold
Very popular with risk-conscious investors is physical gold, such as bars and coins. However, there are some things that should be taken into account, as the buying and selling fees are relatively high and there are also risks involved in storage and other costs. Finally, physical gold does not pay dividends. Nevertheless, the gold price is rising and will continue to do so for various reasons. Experts believe that gold production will reach its historic peak in 2020 with around 118 million ounces. In 2029, annual production is expected to be less than 65 million ounces. The increasing demand for gold and less production volume on the supply side will cause the price of the precious metal to rise accordingly.
Reserves decline and the importance of exploration increases
Against the background that the gold reserves of the world's largest producers have also fallen by around 34% since 2012 and the time from discovery to production is increasing for various reasons, one area in the gold sector will be of particular importance in the coming years - exploration, i.e. the discovery of new gold deposits. Anyone wishing to invest in this area should pay attention to three essential characteristics: good management, promising projects and the ability to raise enough capital. Exploration companies have no revenues and investors are looking to increase value through successful drilling programs and further discoveries. Typically, a successful exploration company is taken over by a producer from a critical mass of reserves.
Gold companies with potential
If you are interested in exploration, you should take a closer look at the following companies. Desert Gold Ventures has projects of over 400 km2 in West Africa and still has a market value of CAD 25 million. Among the shareholders is the commodity expert Ross Beaty, who is also invested in Osino Resources. Osino has projects in Namibia and has a market value of CAD 114 million. In the Golden Triangle of British Columbia Scottie Resources is active and counts billionaire Eric Sprott among its well-known investors. Scottie has a market value of CAD 41 million.Triumph Gold with projects in the Yukon has a market capitalization of CAD 31 million. SolGold already brings CAD 673 million to the scales and focuses on its large projects in Ecuador.
Shifting can be worthwhile
The value drivers of these exploration companies are the scarcity of producers' gold reserves and the associated pressure to take over. The valuation of these companies is downright homeopathic compared to hydrogen companies. Ballard Power is valued at EUR 4.2 billion, NEL ASA at EUR 2.8 billion and Plug Power at EUR 2.7 billion on the stock exchange. Nobody knows how long the price development of the hydrogen industry will last, but if the Bank of America's estimate that gold can rise to USD 3,000.00 per ounce in 2021 comes true, then the shares of the exploration industry will offer enormous price potential.
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.