Close menu




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:


    Gary Cope, President and CEO, Barsele Minerals
    "[...] We are convinced that we could already leverage significant potential with a drilling program of around 35,000 meters. However, to finance this, we need a decision. Fortunately, there are already interested parties who can imagine advancing Barsele together with us. [...]" Gary Cope, President and CEO, Barsele Minerals

    Full interview

     

    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.

    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



    Related comments:

    Commented by Stefan Feulner on June 2nd, 2023 | 08:00 CEST

    ThyssenKrupp, Orestone Mining, Nevada Copper - Optimistic about the future

    • Mining
    • Copper
    • Gold
    • Silver

    Overall, copper is an indispensable part of the green transformation due to its excellent electrical conductivity, corrosion resistance and reliability. It enables the efficient use of renewable energies, promotes electromobility and supports sustainable infrastructure development. Due to recession fears, the base price corrected strongly in recent months. In the long term, copper should make a renewed attempt to reach new highs due to high demand and too little supply.

    Read

    Commented by Nico Popp on June 1st, 2023 | 07:30 CEST

    The breaking point for the dollar - All new for gold? Barrick Gold, PayPal, Tocvan Ventures

    • Mining
    • Gold

    'Dr. Doom' Nouriel Roubini not only predicted the world financial crisis. The Stern School of Business economist in New York also heralded the Corona Shock. Now Roubini predicts the end of the dollar's supremacy. Here is what that could mean and which companies might even have opportunities as a result.

    Read

    Commented by Armin Schulz on May 30th, 2023 | 10:00 CEST

    Barrick Gold, Desert Gold, Deutsche Bank - What happens after the US debt ceiling is lifted?

    • Mining
    • Gold
    • Copper
    • Banking
    • Investments

    In the US, the Democrats and Republicans have agreed on a compromise in the debt dispute. This means that the US can take out more loans, which will ultimately result in an increasing money supply. This could further fuel inflation, while on the other hand, it could boost the gold price. In recent months, the gold price has soared due to the turbulence in the banking sector and was able to mark a new high. Nevertheless, this is remarkable because the FED had raised interest rates significantly, which would typically have tended to argue for a falling gold price. If interest rates do not rise further or even fall, this would be another positive signal for gold. We, therefore, look at 2 gold companies and analyze Deutsche Bank.

    Read