Menu

Recent Interviews

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


25. March 2020 | 08:04 CET

Barrick Gold, Desert Gold Ventures, Yamana Gold - all eyes on gold

  • Gold

The decade without recessions in Canada, Germany and the USA was hardly over when a mixture of different problems and shocks hit the people, politics and economy. The price of WTI oil collapsed to a historic low of around USD 20.00 per barrel, the US dollar gained dramatically in strength and the corona virus caused curfews, disruptions in supply chains and a slump in demand. The central banks in North America and Europe are taking measures to increase liquidity and the Trump Administration is determined to help citizens with 'helicopter money'.

time to read: 2 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

 

Panic causes a sellout

The volatility on the stock markets has been as high in recent weeks as it was during the financial crisis. The power with which the spread of COVID-19 caused panic on the capital markets was unprecedented. Within a few weeks, the S&P 500 Index fell by 30%. During the financial crisis from 2008 onwards, the index of the largest 500 US companies needed around 250 days for a comparable correction.

In the weeks following the Lehman bankruptcy, most asset classes sold out. The gold price also came under pressure, as did the share prices of producers and explorers. Only after a few weeks was the selling pressure over and the gold price rose from around USD 700.00 per troy ounce in October 2008 to over USD 1,900.00 in August 2011.

Money supply is increasing

Whether the financial institutions will continue to falter with their customers during the Corona Crisis will become clear in the coming days and weeks. The faster the pandemic can be stopped, the less damage will be caused.

However, the measures taken by governments and central banks will lead to an increase in the money supply and inflation is likely to rise accordingly. For this reason, the price of gold is expected to rise in the coming weeks, as the precious metal is considered a safe haven by investors. As a result, the companies in the gold industry should also become the focus of investors' attention.

Value creation of gold

Well-known companies such as Barrick Gold and Yamana Gold are broadly based and often the first choice of investors. Barrick's market capitalization is approximately CAD 44.9 billion and Yamana is currently valued at CAD 4.0 billion. Investors who wish to invest in a gold company at the exploration stage to benefit from new discoveries should take a closer look at Desert Gold Ventures. The Company is active in Mali and holds exploration rights for approximately 400 square kilometres near the border with Senegal.

The market value of Desert Gold is approximately CAD 7.5 million. Given that the Company has already discovered zones of 6.3 g/t Au over 13 metres, 3.03 g/t Au over 10 metres and 2.04 g/t Au over 30 metres, there is a possibility that the discovery of additional resources will increase the value of the Company. Once a critical mass of data on the gold occurrences in the areas is reached, a take-over by a major gold producer is likely.

A region with great potential

The West of Africa has extensive gold deposits. In 2018, Mali was the fourth largest gold supplier in all of Africa with a production volume of 2.14 million ounces. In total over 35 million ounces of gold reserves have already been measured or proven in Mali. Besides Desert Gold, the producers B2Gold, Barrick and Endeavour Mining are also active in Mali.

At the beginning of the week Endeavour announced the acquisition of Semafo. The merger will now create a gold producer that will be among the top 15 worldwide, with a total of six mines in Burkina Faso and the Ivory Coast. This transaction puts the region once again in the spotlight. In 2020, the new Endeavour plans to produce 1 million ounces of gold. Desert Gold is obviously located in an interesting region.


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:

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.

Read

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.

Read

11. September 2020 | 10:50 CET

Newcrest Mining, Barrick Gold, Blackrock Gold: Eat and be eaten

  • Gold

Major gold producers are shining with fundamental data. This increases the scope for important acquisitions. At the same time, young companies are attracting attention. Is a wave of takeovers following?

Gold has become a serious alternative for many investors. Even investment professionals, who until now have tended to focus on bonds, are now adding precious metals to their portfolios. Due to high liquidity and certain investment guidelines among professional investors, equities are also increasingly becoming the focus of attention. But not all shares are the same - investors should not blindly buy everything that has "gold" or "mining" in its name.

Read