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May 12th, 2020 | 06:55 CEST

Barrick Gold, Desert Gold, Roscan Gold - protection against shock after Corona

  • Gold
Photo credits: pixabay.com

The state aid measures in connection with the containment of the Corona Pandemic cost a lot of money. The restrictions have brought social life and the economy to a virtual standstill. To avoid chaos and unrest, the states are making payments that are currently only partially covered due to declining tax revenues. In the coming months, when the chaos has cleared up and Covid-19 has hopefully disappeared, a cash check will bring the exact costs to the table. Given that the state refinances itself through fees and taxes, citizens and companies will have to bear an additional burden. Moreover, it is to be expected that the value of currencies will fall due to inflation as the money supply increases. Gold can offer a safe haven as a hedge.

time to read: 1 minutes | Author: Mario Hose
ISIN: CA25039N4084 , CA0679011084 , CA77683B1076

Table of contents:


    Bill Guy, Chairman, Theta Gold Mines Limited
    "[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited

    Full interview

     

    Shares as an alternative to bars and coins

    For investors who are not interested in buying and storing bars or coins with high fees, but still want to park their money in gold, shares of listed companies offer a real alternative. One of the largest gold producers is Barrick Gold and shareholders receive a dividend paid out once a quarter. This is a significant added value compared to physical gold in the vault, because logically this does not pay a dividend.

    The advantage of Barrick Gold is also that the company also mines copper and, in the context of global electrification, demand will provide additional revenue streams. Barrick Gold is active in North and South America and Africa.

    Focus on Mali

    Desert Gold Ventures and Roscan Gold are also active in Africa. Both companies focus on their own areas in Mali. The value driver of these exploration companies is to explore reserves and gather further information on their size. Typically, after each discovery, additional drilling programs are conducted to explore the structures in order to draw conclusions about the grade and quantity of the reserves.

    Usually successful exploration companies are taken over by large producers. For shareholders, a takeover often means exit, unless the transaction is paid for with shares of the acquirer.

    Price potential through drilling program

    Barrick Gold's market capitalization is approximately CAD 67.8 billion at CAD 36.60, making it one of the most valuable mining companies. Roscan Gold is valued at CAD 72.5 million at a price of CAD 0.375. The market capitalization of Desert Gold Ventures is currently around CAD 9.5 million at a share price of CAD 0.105.

    Given that Desert Gold's management recently announced the continuation of a drilling program on the approximately 400 square kilometre areas in the context of the completion of an oversubscribed financing, it is expected that further information will be collected and published in connection with this work. The West of Africa is now one of the best regions on the continent for mining. In this context, the interest of investors in Desert Gold will continue to grow as the work progresses. The comparatively low valuation is also an opportunity.


    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



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