Close menu




September 24th, 2020 | 09:15 CEST

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

  • Gold
Photo credits: pixabay.com

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.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA09258M1014 , CA68828L1004 , CA0679011084

Table of contents:


    Nevada in focus

    Blackrock Gold's share price peaked at CAD 1.61 in July 2020. The shares are now changing hands at less than CAD 1.00. The value of the company has fallen to below CAD 100 million and with this development, it is certainly an invitation to enter the market at a reduced price.

    The company recently announced that some of the projects would be floated on the stock exchange in a separate company. The project is currently being examined and in the event of a positive decision, shareholders will also have a stake in the new company. The spin-out gives the company the advantage that the project can be financed separately in the new company without further diluting Blackrock Gold for a necessary capital round. The companies can then focus on their own projects.

    As Blackrock Gold has already announced, in July 2020 the company discovered a grade of 2,198 grams of silver equivalent ("AgEq") per tonne at 3.0 metres, which came as a surprise to market participants. In a further announcement, 1,577 grams of silver equivalent per tonne over 4.6 metres, including 3.0 metres at a grade of 2,215 grams of silver equivalent per tonne, was announced. The projects in Nevada offer potential.

    Blackrock Gold CEO Andrew Pollard said: "(...) Though we experienced deviation in some drillholes that caused them to miss their targets, we've been able to recalibrate quickly as we ramp up our exploration efforts with the recent addition of a core drill rig. With many assays pending, and plenty of drilling to come, including at yet untested targets, we are excited to add a new chapter to this once storied district."

    Setbacks were always opportunities

    Osino Resources is focused on projects in Namibia and CEO Heye Daun is an experienced company leader. In the past, Daun had successfully prepared a company takeover and sold it to B2Gold. The previous company was also active in Namibia. Daun and his colleagues, in familiar surroundings, are driving the development of Osino Resources so that the first resource can be calculated as soon as possible. The ambitious team wants to have completed all the necessary drilling by October 2020.

    The Twin Hills Central gold project is the focus of activities. The charm of the project lies in its high continuity and depth extension. A few weeks ago, the Osino Resources share was still trading at a peak of CAD 1.65. Currently, the shares are changing hands at CAD 1.35. A year ago the shares were trading at under CAD 0.80. During the Corona Crash in March 2020, the price of the share was even briefly below 0.45 CAD. Since then, the performance has been supported by positive reports.

    Warren Buffett Bonus used up

    Barrick Gold recently surprised the market with a strategic decision. The company will not develop the Pascua-Lama project in the border region of Argentina and Chile. This was preceded by years of dispute with the authorities and the population on the Chilean side. Barrick Gold justified its decision by stating that since the merger with Randgold, emphasis has been placed on developing a good relationship with the population.

    The share was in the spotlight a few weeks ago when Berkshire Hathaway informed the market that the investment company had bought into Barrick Gold. As a result, the share rose by over 10%. The stock is now trading at around CAD 36.00 again - at the entry-level of Warren Buffett. Since April 2020, Barrick Gold has fluctuated between around CAD 30.00 and 40.00. With a market capitalization of around CAD 67 billion, the company is one of the heavyweights in the mining industry.


    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

    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.

    About the author



    Related comments:

    Commented by Fabian Lorenz on April 11th, 2024 | 07:00 CEST

    Out of defense, into gold!? Renk, Barrick Gold, Desert Gold

    • Mining
    • Gold
    • defense
    • armaments

    On Tuesday, German defense stocks were shaken briefly and sharply. In a flash crash, Renk, Rheinmetall and Hensoldt fell by more than 10%. This indicates that defense stocks have run hot. The future prospects for the companies are undeniably positive, but a consolidation is in order. Gold is an entirely different story. The price of the precious metal is at record levels, but the shares of gold producers are still a long way from their 2020 highs. This applies to the heavyweights like Barrick Gold and Endeavour Mining, but even more so to the explorers. One of the promising explorers is Desert Gold. The Company operates in an attractive region, is on the verge of becoming a Tier 1 mine producer, and is a takeover candidate. Barrick Gold is one of many companies that could make a move on Desert Gold.

    Read

    Commented by Stefan Feulner on April 9th, 2024 | 06:45 CEST

    Palantir, Globex Mining, Bayer - The trend is pointing upwards

    • Mining
    • Commodities
    • Gold
    • Silver
    • Pharma
    • Software

    After a successful first quarter of 2024, the DAX and Dow Jones took a well-deserved breather last week. In contrast, the precious metal markets for gold and silver continued their upward trend. Gold also reached new absolute highs of USD 2,354 per ounce. While gold producers such as Barrick Gold and Newmont remained in hibernation, they have been following the rising base price for several weeks now. There is currently also an opportunity for smaller commodity stocks to participate disproportionately in the upward trend.

    Read

    Commented by Stefan Feulner on April 8th, 2024 | 06:45 CEST

    Geopolitical uncertainties - Sibanye Stillwater, Saturn Oil + Gas and Barrick Gold benefit

    • Mining
    • Oil
    • Gold
    • Silver

    In addition to the stock markets, which reached new highs last week, the direction of precious metals and oil is also clearly pointing upward. While gold also reached a new all-time high, silver has significant catch-up potential compared to its big brother. In the case of black gold, the current uncertain geopolitical situation could cause oil prices to break through the USD 100 per barrel barrier once again.

    Read