February 25th, 2020 | 14:27 CET
Barrick Gold, B2Gold, Newmont - who buys which gold explorer?
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
|
Author:
Mario Hose
ISIN:
CA0679011084 , CA11777Q2099 , US6516391066
Table of contents:
"[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.
Author
Mario Hose
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.
Tag cloud
Shares cloud
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
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.
