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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


17. August 2020 | 08:00 CET

Barrick Gold, Desert Gold, SolGold - Buffett's Berkshire gives the starting signal

  • Gold

When on Friday evening after trading hours the news went on the tickers that one of the richest people in the world was switching from banks to gold, then this in itself would have received attention. But that of all people Warren Buffett with his investment company Berkshire Hathaway is now investing in the gold sector has a completely different quality for the investment community. Buffett has always refused to invest in gold, this new attitude towards the precious metal will be the starting signal for a rally through new investor circles. In addition to Amazon, Apple, Facebook, Google, Microsoft and Tesla, gold shares obviously also belong in the portfolio. An exciting stock market week with buying opportunities begins.

time to read: 3 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

 

Gold is the oldest currency

In the past years the topic gold was only present in small investor circles and was more or less frowned upon by value investors. In the meantime, a lot has happened and gold companies are making a lot of money. The price of a troy ounce of the precious metal has risen from under USD 1,300.00 to over USD 2,000.00 in the past 16 months. With this price rise to a new historic level, producers like Barrick Gold are making a lot of money, which is why Warren Buffett has bought nearly 21 million shares of the company and now holds about 1.2% of the producer. Barrick's market capitalization on Friday was CAD 63.3 billion.

Central banks fuel demand

So far, despite the rise in the price of the precious metal, there has been little interest in the gold sector among private and small investors in Europe and North America. With Buffett's landmark decision that gold stocks belong in a value depot, interest in this sector will increase - and for an important reason, because of the increase in money supply by central banks, more and more investors have to use the precious metal to hedge their assets against loss of value.

Supply of gold will decrease noticeably

In addition to the taboo-breaking of Buffett, the decreasing supply of gold will also occupy the markets in the future. The reserves of the largest gold producers have already fallen by 34% since 2012. In addition, the production peak of the largest mining companies is expected in 2020 with around 118 million ounces of gold. By 2029, an annual decline to around 65 million ounces is forecast - this decline of around 45% will change the industry dramatically.

Not only large producers such as Barrick Gold and Newmont will benefit, but also smaller companies such as Desert Gold Ventures and SolGold. As reserves shrink, producers will have to acquire successful exploration companies in order to continue mining in the future. The high price of gold is currently also putting a lot of liquidity into the war chest.

Take-over candidate for Barrick

Desert Gold Ventures is looking for additional gold deposits in West Africa near a Barrick Gold mine. The company has already discovered gold at several locations on its 400 square kilometre projects and will announce the results of its latest drilling program shortly. Desert Gold's management plans to discover up to six million ounces in the existing structures and subsequently be acquired by a producer. In 2018, when the gold market in Africa was still at around USD 1,200.00 per ounce and still low, more than USD 200.00 per ounce in the ground was paid on acquisitions.

Not much imagination is needed to estimate the impact that the rise in the price of gold will have on the possible take-over price of Desert Gold. The market value of the company on Friday was CAD 31.5 million and from today's perspective, there is a chance that the stake will multiply in the event of a take-over.

Giant with deposits in Ecuador

SolGold is already a different caliber, as the company has explored around ten percent of the world's newly discovered gold in the past ten years. The market value of SolGold is CAD 836.6 million - with ample upside potential as the company has defined a copper-gold deposit in Ecuador since 2012 with 21.7 million ounces of gold, 9.9 million tonnes of copper and 92.2 million ounces of silver at the Alpala Project. A total of 13 projects have now been identified and SolGold intends to move forward rapidly with the exploration plan developed at Alpala to advance the other regional projects.

As the top dog, SolGold is also the only company in the world with a pipeline of opportunities with the same geology, regulatory, tax and social environment. Given that the company's market value is still less than CAD 1 billion and that there are numerous projects in the pipeline, the value of SolGold in a take-over would be significantly higher.


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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