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Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


Alex Kent, Managing Director, Aspermont Limited

Alex Kent
Managing Director | Aspermont Limited
613 - 619 Wellington Street, WA, 6000 Perth (AUS)

Corporate@aspermont.com

+61 8 6263 9100

Aspermont shows the success of digitalization - Alex Kent has an agenda


25. March 2020 | 08:04 CET

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

  • Gold
Photo credits: pixabay.com

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

 

Author

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


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.


Author

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



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.


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  • Gold

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  • Gold

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  • Gold

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