Close menu




November 16th, 2021 | 11:34 CET

Barrick, Barsele Minerals, Agnico Eagle, Yamana - Trading the gold explosion to USD 2,500!

  • Gold
Photo credits: pixabay.com

Minneapolis Fed President Neel Kashkari announced last weekend that high inflation could persist in the coming months, and yet the Fed should not overreact; after all, inflation will pass again. As you can see, central bankers on both sides of the Atlantic never tire of repeating this thesis to us investors. One tends to listen carefully because the same monetary watchdogs tried to conjure up a "wishful inflation" of over 2% a few years ago. A stage goal has certainly been reached with a 4% increase in price! What is the future for precious metals in this environment?

time to read: 5 minutes | Author: André Will-Laudien
ISIN: BARRICK GOLD CORP. | CA0679011084 , BARSELE MINERALS | CA0688921083 , AGNICO EAGLE MINES LTD. | CA0084741085 , YAMANA GOLD INC. | CA98462Y1007

Table of contents:


    Barrick Gold - Current mergers pass the gold giant by

    In the last upward movement of the precious metals, many investors look at the blockbuster concerns such as Barrick, Newmont, Freeport or Agnico Eagle. For a long time, the question was: What are the gold companies waiting for in terms of takeovers because the coffers should be well filled due to the high spot prices. However, things have been going at a rapid pace for a few weeks now. Another blockbuster deal followed the takeover of Kirkland Lake Gold by Agnico Eagle.

    The Australian gold producer Newcrest is making a move for Pretium. The deal cost Newcrest CAD 3.5 billion - a sum last spent in 2007.
    With this, the next large producing gold mine in Canada is going over the bar. The Brucejack mine last produced around 350,000 to 400,000 ounces annually. However, the mine is considered one of the most controversial projects in Canada. Some geologists believe that the nugget effect distorts the drilling and ultimately the Resource, and in fact, Pretium's quarterly results have fluctuated significantly recently.

    The interesting thing is that the major North American producers are only spectators on the sidelines. Neither Newmont nor Barrick Gold was able to announce any major acquisitions recently. Particularly in the case of Barrick Gold, this is surprising since CEO Mark Bristow had announced that Barrick needed significantly more mines in North America. However, both Kirkland Lake and Pretium were not taken up by the North Americans. In the current market, these were the two largest producing Canadian mines behind Canadian Malartic. Agnico and Yamana own this project in a 50/50 joint venture.

    Currently, Barrick Gold is said to be interested in Great Bear. This project currently costs CAD 1.25 billion and has doubled in the last 2 months alone. But even if that is true, Great Bear is certainly still more than 5 years away from production. Investors in Barrick stock are starting to get impatient. That could also explain the relatively weak share price in recent months. While other mines could gain up to 80%, Barrick bobs back and forth between CAD 23 and 26. In Euro terms, Barrick is down 17% on a 52-week basis. It makes sense to take a closer look here in the coming weeks.

    Barsele Minerals - Continuation of cooperation with Agnico Eagle in Sweden

    For years, Sweden has been an excellent location for mining companies. That puts the Scandinavians in a good position in the international race for critical metals, as the deposits of metals and energy sources are outstanding compared to Europe, which is poor in raw materials. For years, the Swedish government has been very cooperative with the mining industry. That also enables smaller raw material companies like the Canadian Barsele Minerals to push ahead with corresponding exploration projects.

    The Company's current project is located in the mining region of Västerbottens Län in northern Sweden, 600 km north of Stockholm, and covers 33,500 hectares in the Fennoscandian Shield. The zone of interest is located at the western end of the Proterozoic "Skellefte Trend", a prolific belt of volcanogenic massive sulfide deposits that overlaps with the "Gold Line" in northern Sweden. Both polymetallic deposits and intrusive-hosted gold intercepts are present in this region.

    Effective September 30, 2021, the Swedish Geological Survey (SGU) has declared the land intercepts of the Avan-Central-Skirasen (CAS) orogenic gold system and the Norra VMS deposit a land and water area of national interest. It covers a size of 685 hectares and, in the future, will impose higher requirements for the public and the relevant planning authorities in project allocation. As the valuable resources and substances have now been classified as nationally valuable, they will in the future be subject to protection against significant interference with nature. That will lead to new and, in some cases, more complex approval procedures for the planned mining activities. Overall, Barsele Minerals regards this as very positive, making access more difficult for unknown competitors.

    According to initial estimates, the project has a potential of over 5 million ounces of gold. In addition, the deposit contains recoverable metals such as silver, lead, zinc and nickel. Currently, 45% of the shares are held by Barsele Minerals and 55% by Agnico Eagle. The stock market value of about CAD 78 million is relatively low compared to the dimensions of the deposit. In our opinion, the project will attract very high attention in the current metal price cycle.

    Yamana Gold - The mid-tier gold producer is highly interesting

    Toronto-based mining Company Yamana produces gold, copper and silver in Canada and South America. In 2003, Canadian investor Peter Marrone acquired the 'old' Yamana for around USD 18 million, which until then had only operated in Argentina and Brazil. The Company then expanded strongly in 2006 with the acquisition of RNC Gold, Desert Sun Mining Corp. and Viceroy Exploration for a combined USD 1.24 billion. Gold production was thus able to exceed the one million ounce mark by 2008. In 2012, the Cerro Moro project in Argentina was purchased from Extorre Gold Mines. Finally, in 2014, Yamana acquired a 50% stake in the Canadian Malartic Mine through a joint venture with Agnico Eagle Mines. Today, Yamana Gold's market capitalization is CAD 5.4 billion.

    Recently, Yamana Gold reported results for the third quarter of 2021. While the group continued to increase its operating earnings, total production costs per 256,464 gold equivalent ounces mined decreased YOY from USD 1,096 to USD 1,041 (AISC). Operating profit increased by 8% to USD 154 million. Earnings per share were in line with market estimates at USD 0.07, while revenue was slightly lower at USD 452.2 million. The Company reaffirmed its full-year production target of approximately 1 million gold equivalents. The market did not warm up to the figures, to put it bluntly, with the share coming under considerable pressure after the announcement.

    Nevertheless, the Yamana chart is not entirely in the bucket if the EUR 3.50 holds. Currently, the share is relatively stable at EUR 3.94. Should the gold price continue to rebel, even a break of the EUR 4.30 line is to be expected. Then the way would also be free to the old 52-week high at about EUR 5.00. Remain courageously invested in this inflationary environment with a tight stop of EUR 3.50.


    High profits are currently being booked in the commodities sector. Industrial metal prices have been rising for some time, and now precious metals are also starting to soar. Agnico Eagle, Barrick and Yamana are major producers, and Barsele Minerals is also sitting on a promising project in Sweden. The realization of this project should soon boost the share price.


    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.

    Risk notice

    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.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    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.

    About the author



    Related comments:

    Commented by Stefan Feulner on March 19th, 2024 | 07:15 CET

    Nvidia, Manuka Resources, Aurora Cannabis - All the rage

    • Mining
    • Vanadium
    • Gold
    • AI
    • chips
    • Cannabis

    The stock markets continue to boom. The DAX was able to climb above the psychologically important 18,000-point mark, at least in the short term, while other asset classes, such as gold and Bitcoin, also reached new highs. By contrast, different sectors, such as hydrogen and cannabis, have continued to plummet in recent weeks. The latter, in particular, has received an upward boost from the US government's statements, which could herald a trend reversal.

    Read

    Commented by Stefan Feulner on March 12th, 2024 | 06:45 CET

    Barrick Gold, Desert Gold Ventures, Newmont - When will the next surge follow?

    • Mining
    • Gold
    • Inflation

    Gold is shining again. After reaching a new all-time high, the crisis and inflation hedge is back in the mainstream. While there has been little to read about the yellow precious metal in the newspapers in recent weeks, gold articles are currently among the most visited. During the initial impulse of the recent rise, mining stocks lagged significantly. However, if the positive trend continues, they could make up for this with disproportionately high price gains.

    Read

    Commented by André Will-Laudien on March 6th, 2024 | 11:40 CET

    Bitcoin soon at USD 100,000? The music is also playing at Rheinmetall, Renk, Manuka Resources and BYD!

    • Mining
    • Vanadium
    • Gold
    • armaments
    • Electromobility

    The stock market is not a one-way street. While Bitcoin reaches new highs daily, many stocks are still on the sidelines. Only 21% of all listed shares reached a new high in 2024, yet the Nasdaq 100 and the DAX 40 index are at their all-time highs. Only a few stocks are gaining favour with investors; others are being left behind. The current focus is on high-tech stocks that enable ever-greater computing power, such as in mining or artificial intelligence. In addition to gigantic amounts of data, mining requires trillions of computing operations to be carried out in a very short time. There are rewards in the form of new bitcoins for confirming transactions on the blockchain, but they will be halved by the next "halving" event in April. Armament values, on the other hand, seem to be heating up. So how much time is left to reap further leaps in returns?

    Read