Menu

Recent Interviews

Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


02. July 2021 | 13:04 CET

Barrick Gold, Desert Gold, Steinhoff: Knowledge instead of hope and fear

  • Gold
Photo credits: pixabay.com

Gold has recently gone under the wheels, but that does not necessarily mean anything. The experts at Commerzbank are still sticking to their gold price forecast of USD 2,000 by the end of the year. Given the recent correction, the potential for price gains is therefore even greater. We outline how investors can invest based on two companies from the gold sector. We then distinguish speculative gold investments from gambler stocks.

time to read: 3 minutes by Nico Popp
ISIN: BARRICK GOLD CORP. | CA0679011084 , DESERT GOLD VENTURES | CA25039N4084 , STEINHOFF INT.HLDG.EO-_50 | NL0011375019


Steve Cope, President, CEO and Director, Silver Viper
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper

Full interview

 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


Barrick Gold: Where is the liberation blow?

Barrick Gold's stock is considered the gold standard by many retail investors. If you ask people about typical gold stocks, they usually always mention Barrick, even though the Company is "only" number 2 worldwide behind Newmont. Barrick Gold operates numerous mines in all the major mining regions of the world. It means that Barrick is well-positioned to compensate for regional problems, such as natural disasters or even strikes. The downside of this solid positioning is that Barrick's stock has little imagination. The share generally moves in lockstep with the price of gold. Last year, Barrick was flush with cash and had strong free cash flow. However, because of the pandemic, it was challenging to identify takeover targets and make moves. Investors resented Barrick's efforts and only sullenly accepted the special dividend paid out in the fall. Investors would have preferred a takeover.

Barrick Gold is still looking for potential takeover targets. The copper sector also remains interesting for the Company, but at the moment, almost everything revolves around gold. With the industrial metal copper, the Company would be more broadly positioned and benefit from future trends, such as e-cars. However, the extent to which Barrick Gold is serious about copper remains to be seen. Other acquisitions would also have to be of a specific size to impact the share price positively. With rising gold prices, Barrick will also gain again, but the potential of the share is somewhat limited.

Desert Gold: Making progress

Desert Gold, on the other hand, is of a completely different caliber. Unlike the world's second-largest gold producer, Desert Gold's resources are valued much lower. The reason: Desert Gold is not yet in production and is developing its SMSZ project in Mali step by step. The project is located in the same geological regions as neighboring producing mines of Barrick Gold and B2Gold. Recently, auger drill results north of Gourbassi West showed promising indications of gold deposits. The results are expected to be confirmed by further drilling. In the event, the results of the exploration work could more than double the strike length of the existing deposit. In total, Desert Gold is drilling more than 20,000 meters in 2021 to advance the project.

Last year, the Company made a name for itself thanks to outstanding gold grades and caused a steep rise in share prices. In the meantime, the share has remained at its current level for several months. Last summer, the share price was more than twice as high. Given further promising drill results, as well as illustrious anchor shareholders, such as Merck, Leede Jones or Ross Beaty, gold investors should keep the shares of Desert Gold on their radar. Smaller stocks that have yet to develop projects offer leverage to the gold price, especially during rising gold prices.

Steinhoff: A never-ending story?

Shareholders of Steinhoff are also hoping for exorbitant profits. The furniture group was rocked by an accounting scandal years ago. Since then, the Company has been facing lawsuits. The claims, amounting to billions, could endanger the existence of the entire Company. There have been repeated references to possible settlements and a resolution of the legal disputes. That would also help the stock, which has been a penny stock for a long time, get back on its feet. But the mills of justice grind one thing above all - slowly. And that is why the speculation surrounding the Steinhoff share is also characterized by many delays and disappointed hopes. Instead of betting on the outcome of complex legal proceedings, investors who are convinced of rising prices for gold can also invest speculatively with Desert Gold, but in a much more predictable way. Given the circumstances, Steinhoff's stock is nothing more than a gamble. Even if the legal disputes end positively, Steinhoff remains a highly indebted furniture group. The potential for the share is limited in any case.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author



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:

25. October 2021 | 13:25 CET | by Carsten Mainitz

Desert Gold, Barrick Gold, K+S - Now or never?

  • Gold

With inflation of over 4% in Germany and the continued massive money printing of the central banks, every investor should think about protecting oneself against the loss of purchasing power. To dismiss this as a temporary phenomenon would be a mistake. In times of high inflation, a good strategy is to invest in tangible assets such as stocks, real estate, and commodities.

Read

22. October 2021 | 13:23 CET | by Stefan Feulner

Infineon, Sierra Grande Minerals, Xiaomi - New attack

  • Gold

2020 shows an extreme increase in government debt in the Eurozone. Due to the Corona Crisis, the ratio of public debt to gross domestic product increased to 90.7%, according to the Eurostat statistics agency. The situation worsened further in the crisis countries, especially in Greece. There, the debt-to-GDP ratio was 205.6%, followed by Italy with 155.8% and Portugal with 133.6%. There is no end in sight to this spiral. In the long term, however, investors can protect themselves by investing in the precious metals sector.

Read

19. October 2021 | 13:13 CET | by Nico Popp

Plug Power, Central African Gold, Newmont: The best of both worlds

  • Gold

The risk appetite is back! Especially in the past week, shares around hydrogen and electromobility have climbed rapidly again. Even hydrogen stocks of the first hour were again kissed awake by the market. We highlight Plug Power, one such share, and list shares that tech-savvy investors can add to their portfolios.

Read