Close menu




February 3rd, 2022 | 14:02 CET

Barrick Gold, Desert Gold, K+S - The big picture is right!

  • Gold
Photo credits: pixabay.com

Does inflation hurt the stock markets? The answer is: it depends. It depends on how high it is and how long it lasts. Likewise, industries and consumers are affected quite differently. Interest rate levels also play an important role. What has been shown in the past - gold performs well during periods of high inflation. Agricultural commodities are also predicted to have a dazzling future.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: BARRICK GOLD CORP. | CA0679011084 , DESERT GOLD VENTURES | CA25039N4084 , K+S AG NA O.N. | DE000KSAG888

Table of contents:


    Ryan Jackson, CEO, Newlox Gold Ventures Corp.
    "[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

    Full interview

     

    Barrick - Things get exciting on February 16

    The world's second-largest gold producer was able to make its shareholders happy with the release of preliminary key data in January but also helped to color the sentiment in the industry more positively again. With the Q4 figures, the Canadians could slightly exceed the production volume forecast at the lower end. As before, the high price level of gold and copper plays into the producer's hands.

    Shareholders will receive more information on February 16 during the presentation of the final figures for the past fiscal year. Much more exciting, however, will be the outlook Barrick is likely to give for 2022. High profits and rising cash flows have led to a significant reduction in the Company's debt. The Canadians let the shareholders participate in the form of special dividends. Takeovers would undoubtedly boost the share price further. Analysts calculate an average upside potential for the mining share of almost 40%.

    Desert Gold Ventures - Milestone reached and moving forward!

    No sooner said than done. The gold explorer started the new year by reaching an important milestone. Desert Gold announced the first pit constrained mineral resource from five deposit zones at its flagship SMSZ project. The zones are within a tight, 12km radius in the southern half of the 440 sq km SMSZ project in Mali, West Africa. The state is the continent's third-largest gold producer. Analysts recently took a closer look at the Company's prospects.

    The SMSZ project, named after the Shear Zone between Senegal and Mali (Senegal-Mali Shear Zone), is the region's largest contiguous non-producing land package. Geographic proximity to several producing Tier 1 gold mines captures the imagination.

    The resource estimate totals just over 1 million ounces of gold. Accordingly, the measured and indicated mineral resource totaled 310,300 ounces of gold at 8.47 million tonnes and a grade of 1.14 g/t gold. The majority was in the "inferred" category, i.e. associated with higher uncertainty, with 769,200 ounces of gold (at 20.7 million tonnes and a grade of 1.16 g/t).

    An additional exploration program consisting of approximately 17,000 meters of drilling is planned for 2022. Priorities are the Gourbassi West and Mogoyafara South zones. Follow-up drilling is also planned for gold-bearing drill intercepts from 2021 and previous exploration programs. Recently, the Company secured nearly CAD 1.7 million in a capital increase.

    One thing is sure, the SMSZ project has excellent development potential. It is only a matter of when the Company will be revalued, not if. The Canadians are increasingly a potential takeover candidate. With a stock market valuation of just under CAD 23 million, the market has not yet priced in many factors.

    K+S - Full speed ahead!

    The K+S share ended the past year as the performance leader of the MDAX. The good earnings prospects and the low Company valuation give the shares a strong tailwind this year. Once again, the stock has been the best performer in the index of medium-sized German companies since January 1.

    However, the analysts at Stifel believe that the fertilizer group has even more potential and recently raised the price target to EUR 22. That corresponds to an upside potential of around 25%. Stifel expert Andreas Heine cites the massive increase in profit expectations up to 2023 as the reason for the positive rating. In addition, Heine expects potash prices to remain high and sees a good chance that K+S could surprise positively this year. We fully agree with this assessment.


    Commodities are cyclical investments. Looking at the big picture argues for rising commodity and precious metal prices. Barrick and K+S belong in a well-diversified portfolio. Desert Gold will certainly reward patient investors given the excellent framework conditions and project progress.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Fabian Lorenz on May 19th, 2025 | 07:10 CEST

    RAW MATERIALS and DEFENSE! Sell Hensoldt? Buy Deutz and Globex Mining shares?

    • Mining
    • Gold
    • Defense

    Raw materials and defense remain among the hot topics of the year. Globex Mining is benefiting not only from the gold boom but also from the battle for raw materials. The stock of the mining incubator currently offers an exciting entry opportunity. Analysts recommend buying Deutz. However, after a solid quarter, the engine manufacturer needs to shift up a gear or two to justify its valuation. A highlight was the development in order intake. This is precisely what Hensoldt is lacking. When a growth company's revenue increases more strongly than its order intake, investors should at least keep an eye on it. Analysts are also skeptical regarding Hensoldt's valuation and recommend selling the stock.

    Read

    Commented by André Will-Laudien on May 13th, 2025 | 07:20 CEST

    Defense out - Time to buy commodities! Hensoldt, Globex Mining, Barrick, Mutares, and Steyr

    • Mining
    • Gold
    • Defense
    • Investments

    That is how quickly market darlings can fall out of favor. Just last week, Rheinmetall & Co. were hitting record highs, but as of Monday, the euphoria came to a sudden halt. Trump agreed with China on lower tariffs, and Volodymyr Zelenskyy will travel to Turkey on Thursday to sit down with Russia's aggressor, Vladimir Putin. At the moment, this is still hard to believe. For the capital markets, however, this means a shift: out of defense and into high-tech and automotive stocks, the biggest winners of recent hours. The whole thing could be seen as a healthy rotation, as the major indices are at record levels, while tech and automotive stocks have corrected significantly in recent weeks. Once again, the cards are being reshuffled. For Globex Mining, the setback is suitable for medium-term follow-up purchases.

    Read

    Commented by Fabian Lorenz on May 12th, 2025 | 07:05 CEST

    Gold at USD 6,000 and takeover rumors: Evotec, Barrick Gold, and Desert Gold shares

    • Mining
    • Gold
    • Biotechnology

    Evotec shares shot up by over 10% on Friday. Is it due to the payment from the Gates Foundation? Or is there a new attempt to buy German biotech companies soon? Desert Gold is a hot takeover candidate in the gold sector. The Canadians aim to expand their resources to 2 million ounces and start production soon. Analysts at GBC Research believe the share price could multiply. GBC's estimates are based on a gold price of USD 2,300. Currently, the precious metal is trading above USD 3,000. According to experts, USD 6,000 is even possible. In that case, even Barrick could strike it rich. However, the latest first-quarter report failed to provide new momentum for the stock. Are acquisitions needed?

    Read