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July 22nd, 2020 | 11:03 CEST

Barrick Gold, Desert Gold Ventures, Triumph Gold - the gold boom has begun

  • Gold
Photo credits: pixabay.com

The price of gold has been rising for more than a year and there is no end in sight. As long as the central banks print money to cure the problems of the Corona Pandemic, the flight from money will continue and investors will exchange paper for gold or other tangible assets. If you have no plans today, then you should think about investing in gold. If you already have a busy schedule, then you should take the time. Don't put yourself in the position of being annoyed at not having traded after these lines when the price reaches USD 2,000.00 and above.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA0679011084 , CA25039N4084 , CA8968121043

Table of contents:


    Margins increase and reserves decrease

    Barrick Gold is one of the largest gold producers in the world. The company has gold and copper projects in 13 different countries around the globe. The focus is on regional diversification as well as high margin and long mine life. As the price of gold rises, the margin will also continue to increase. The temptation suggests that production volumes will also be increased, so that revenues will continue to rise even at this high level.

    The biggest challenge for Barrick and all other gold producers, however, is the fact that reserves are continually shrinking - and rapidly. Since 2012, the largest producers have recorded a 34% decline in reserves. Barrick also predicts that by 2020 the production peak of all companies will be reached with around 118 million ounces and that in the following years significantly less new gold will be on the market. By 2029, the annual production rate is even expected to fall below 65 million ounces. Producers can fix the decline in reserves most easily by taking over exploration companies. An M&A wave in the gold sector is likely to start soon. So anyone who wants to invest in gold should have a foot in the door of promising exploration companies.

    Acquisition target in West Africa

    Desert Gold is active in West Africa and has properties covering more than 400 km2. The company has proven gold occurrences in various locations in the past and is currently exploring for further structures containing the precious metal. The management has set a target of up to six million ounces to be proven on the properties. The current and future drilling programs are therefore designed to accumulate the amount of deposits towards this magnitude.

    Desert Gold is not alone in the region and is surrounded by renowned producers such as B2Gold, Barrick Gold and Iamgold. These producers already operate mines in West Africa and are potential buyers of Desert Gold. The exploration company becomes attractive for a takeover already with a critical amount of gold reserves. In Africa, takeovers in 2018 have already paid more than USD 200.00 per ounce in the ground - and at that time the price of gold was significantly lower.

    Fresh capital in the bank

    Triumph Gold is successfully exploring for gold deposits on its properties in the Yukon, Canada. The company already has the producer Newmont on board as a major shareholder. As with most successful exploration companies, Triumph Gold focuses on the acquisition by a producer as an exit strategy for its shareholders.

    An acquisition can be interesting for a producer for a number of reasons. If the acquirer is already active in the region, such a transaction has many organisational advantages in the neighbourhood. The infrastructure and personnel are already largely in place. But it also happens that a takeover means the entry of a producer into a new region. Triumph Gold announced the completion of a financing last Friday. According to this, the company has received more than CAD 3.3 million in fresh capital. With the money, the management can continue to beautify the bride.


    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.

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    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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