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Jared Scharf, CEO, Desert Gold Ventures Inc.

Jared Scharf
CEO | Desert Gold Ventures Inc.
4770 72nd St,, V4K 3N3 Delta (CAN)

jared.scharf@desertgold.ca

Desert Gold Ventures CEO Jared Scharf on West Africa and its potential


Stephan Dorfmeister, Finance Department, Deep Nature Project GmbH

Stephan Dorfmeister
Finance Department | Deep Nature Project GmbH
Untere Hauptstraße 168, 7122 Gols (AT)

office@deep-nature.at

+43 681 10139055

Like Aurora Cannabis and Canopy Growth, Deep Nature Project GmbH focuses on value chain


Alison Coutts, Executive Chairman, Memphasys Ltd.

Alison Coutts
Executive Chairman | Memphasys Ltd.
30 Richmond Road, 2140 Homebush West (AUS)

alison.coutts@memphasys.com

+61 2 8415 7300

Memphasys Executive Chairman Alison Coutts on in vitro fertilisation (IVF)


25. February 2020 | 14:27 CET

Barrick Gold, B2Gold, Newmont - who buys which gold explorer?

  • Gold

The price of the troy ounce of gold is at its highest level in seven years. Currently, the precious metal costs around USD 1,650.00. The value of the troy ounce has thus increased by more than 30% in the past 12 months from under USD 1,270.00. Because the precious metal is considered a safe haven in uncertain times, it is clear how much investor uncertainty must have increased in recent months. As a result, margins and profits are rising for gold producers. The more that is mined, the more reserves must be discovered or acquired in order to continue producing gold in the future.

time to read: 2 minutes by Mario Hose


Jared Scharf, CEO, Desert Gold Ventures Inc.
"[...] Our SMSZ project is the largest contiguous land package of any exploration company in the region at 400km2 and overlays a 38km portion of the prolific Senegal Mali Shear Zone. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.

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Generating profits and securing reserves

Barrick Gold, B2Gold and Newmont are well-known gold producers. These experienced companies ensure that the demand for the precious metal can be satisfied. In market phases, when margins are particularly high, it is probably worthwhile to produce more in order to realize profits from reserves.

However, if the gold reserves in the ground are declining, then less could be mined in the future. This is a situation that investors would not welcome and that is why gold producers must continue to discover new reserves and develop areas or simply take over exploration companies or their areas. For this reason, exploration companies can also be an interesting addition to the portfolio for investors.

Mining is a billion dollar market

In order to get a feel for the dimensions of these gold producers and possible takeover targets, market capitalisation is a useful first impression. Barrick Gold is valued at the stock exchange at a price of 29.30 CAD with over 52 billion CAD. Competitor B2Gold closed yesterday at CAD 6.36 and was valued at over CAD 6.5 billion. Mining giant Newmont is the most valuable company in this selection with a market capitalization of over CAD 54 billion at yesterday's closing price of CAD 66.90.

Exploration performance opportunity

In addition to the profit development of these producers, investors are particularly interested in the question of who they could take over next. In this context, exploration companies probably offer the highest return for investors if successful. Companies with a focus on exploration that can successfully explore their areas and expand their reserves continuously reduce the risk for potential takeovers.

It is also not uncommon for producers to acquire additional areas from exploration companies or even take over the whole company in the neighbourhood - the latter can be most lucrative for investors, because often an attractive premium is paid. Next Sunday in Toronto, the four-day commodity conference PDAC, the world's largest industry meeting, will begin, providing an excellent platform for the personal exchange of information.

Osino Resources in Southern Africa

Osino Resources is a classic takeover candidate with areas in Nambia, which continuously collects and releases data on the areas through drilling programs. The company is led by CEO Heye Daun, who has already sold a company to B2Gold in the past and therefore knows what is important. Osino Resources closed yesterday at a share price of CAD 0.79 and was worth approximately CAD 67.5 million. Commodity legend Ross Beaty is invested in Osino Resources, giving the company a special charm.

Desert Gold Ventures in West Africa

The same applies to Desert Gold Ventures with projects in Mali, in which Ross Beaty is also a shareholder. The company yesterday announced results from its latest drill program and the value of its shares rose to CAD 0.155, while its market capitalization increased to CAD 14.4 million. Barrick Gold, B2Gold and Newmont are also active in West Africa. Above a certain proven amount of reserves, it is therefore possible that one of these gold producers will signal its interest.

Triumph Gold in North America

Triumph Gold is active in Canada and has territories in the Yukon. Newmont is already on board as a major shareholder through its previous acquisition of Goldcorp. The market value of the company is approximately CAD 24.7 million at yesterday's closing price of CAD 0.235. As the price of gold rises, Triumph Gold is also more likely to be completely acquired by Newmont or a third party might come in to take over the projects or Triumph Gold as a company.


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 shares in the aforementioned companies and that there may therefore be a conflict of interest. Further details can be found in our Conflict of Interest & Risk Disclosure.


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06. July 2020 | 08:48 CET

Desert Gold, Steinhoff, Wirecard - what investors need to know now

  • Gold

Central banks have been printing more money than ever before since the outbreak of the Corona Pandemic. Those who want to escape from money are buying shares or purchasing physical assets such as real estate or precious metals. Gold is the oldest and most secure currency in the world. The value of bars and coins has been rising since the second quarter of 2019 and is increasingly gaining momentum. In the case of Wirecard, the extra time has begun and the fair value will move towards zero after the insolvency filing. What is now going on at Steinhoff? An exciting week has begun.

Read

24. June 2020 | 12:10 CET

Barrick, Franco-Nevada, Yamana - Gold price at record high and now the second row is getting interesting

  • Gold

In the morning the price of gold rose to over USD 1,770.00, its highest level since 2012, and continues to gain momentum; there is no end in sight. The big gold companies can already profit from the price increase since May 2019. Their margins have risen significantly and profits are developing in line with this. The share prices of the largest companies reflect what shareholders are already benefiting from: the flight of money into gold is in full swing. Gold is virtually the only independent currency in the world. There are now many opportunities to profit from it.

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16. June 2020 | 11:34 CET

Barrick, Desert Gold, Endeavour Mining - Who benefits from the gold shortage?

  • Gold

The production of gold is expected to reach its historic peak this year and from then on it will go down more or less dramatically. While the production of the largest producers was still below 80 million ounces in 2009, since then it has risen almost linearly to the volume of over 117 million ounces forecast for 2020. In 2029, not even 55% of this quantity is expected to be reached - with consequences for the gold price.

Read