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Nick Mather, CEO, SolGold PLC

Nick Mather
CEO | SolGold PLC
1 King Street, EC2V 8AU London (GB)

emichael@solgold.com.au

+44 20 3823 2125

SolGold CEO Nick Mather on building a major gold and copper mining company


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


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


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

 

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 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:

24. September 2020 | 09:15 CET

Barrick Gold, Blackrock Gold, Osino Resources: buy when weak?

  • Gold

The price of gold and silver has come under pressure in the past few days and so too has the price of the shares of the companies involved in the creation of value for precious metals. The fear of another lockdown in connection with the Corona pandemic seems to be worrying the markets. Against this backdrop the central banks and governments continue to support the economy with measures. The correction in precious metals may now be an opportunity to enter, because when the presses are running at full speed, the oldest currency in the world is usually a safe haven.

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18. September 2020 | 09:00 CET

BHP Group, Newcrest Mining, SolGold: Getting bogged down or putting all your eggs in one basket

  • Gold

When it comes to investing in commodity companies, the BHP Group is a household name. The British company is active worldwide, mining coal, iron ore, copper and other commodities and has long been considered a solid dividend earner. But recently the company has disappointed: Special effects put pressure on profits, unrest in Chile made life difficult for BHP and the Corona pandemic also left its mark: the bottom line at the end of the financial year at the end of June was a profit of no less than EUR 6.75 billion. While the mood among investors was not particularly good, BHP cut its dividend by around ten percent, thus spoiling shareholders’ sentiment even further. On a year-on-year basis, the share price fell by around 1.4%. In view of the good performance of copper following the outbreak of the pandemic, this is too little for many investors.

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15. September 2020 | 11:00 CET

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

  • Gold

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.

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