December 17th, 2020 | 09:12 CET
Barrick Gold, Desert Gold Ventures, Yamana Gold - the winners of the next gold price increase
Central banks are printing new money at a rate that can make you dizzy. No one can answer where this will lead. The Corona pandemic causes further worry lines with its profound effects on our daily life but also in terms of the labour market and economy. Given these general conditions, it is not surprising that gold, as a crisis currency, has marked new highs in the year. Even though there is a consolidation at the moment, the outlook remains positive. Which stock should you bet on?
time to read: 2 minutes
|
Author:
Carsten Mainitz
ISIN:
CA25039N4084 , CA0679011084 , CA98462Y1007
Table of contents:
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
Tag cloud
Shares cloud
BARRICK GOLD CORPORATION - diversified big player
With the shares of Barrick Gold, investors invest in an established and profitable gold producer. Only Newmont is just ahead of Barrick Gold in terms of annual production and market capitalization. Barrick currently has a market capitalization of around CAD 52 billion and plans to produce up to 5 million ounces of gold in the current year.
In addition to gold, the Group also owns and operates several copper mining operations and projects. Copper is in high demand in the wake of electromobility. In total, the Canadians operate in 13 countries worldwide, particularly in North and South America and Africa. The portfolio includes many of the world's most productive gold districts, with the Group focusing on high-margin, long-life mines.
According to the most recent quarterly data, Barrick achieved record free cash flow of USD 1.3 billion, up 151% year-on-year, as a result of high commodity prices. Currently, the stock is trading at CAD 29, well below its high for the year of CAD 41. Seven of nine analysts rate the stock a "buy" with an average price target of CAD 41.50.
DESERT GOLD VENTURES INC - the tension rises
Desert Gold Ventures Inc. is a gold exploration and development Company and focuses on Africa. The core of the portfolio is two gold exploration permits with large land areas, for the SMSZ project and Djimbala, in western Mali. Mali is the fourth-largest gold producer on the continent.
The day before yesterday, Desert Gold announced that its joint venture partner, Indigo Exploration, had commenced exploration work at the Djimbala Gold Project. After preliminary work, drill targets will be defined within the two zones, Djilefing and Forela. These zones have shown high gold grades in assays. Indigo Exploration acquired the option to purchase up to 100% of the rights to the Djimbala Gold Project subject to certain milestones. Desert Gold would thereby significantly increase its current interest in Indigo Exploration.
The Djimbala Gold Project is 100sqkm in size and is located near producing mines. If positive news from the exploration program follows here, the Company, with a current market value of CAD 21 million, should soon see much higher valuation levels. However, the company's own drilling program, which is currently underway, also offers enormous potential due to its dimensions of 20,000 meters.
YAMANA GOLD INC - strategically to success
The Canadian gold and silver producer is active in North and South America. Yamana's production in the current year will be equivalent to nearly 900,000 gold equivalent ounces.
Like Barrick, the Company reported positive third-quarter numbers in the wake of high precious metals prices. In early December, Yamana announced priorities for its strategic exploration program. The goal is to discover a stand-alone project with resources (inferred) of at least 1.5 million gold equivalent ounces within three years. In the longer term, the discovery is expected to result in a new cash flow generating mine with a production of 150,000 ounces per year for at least eight years.
The Canadians are currently valued at CAD 6.7 billion. The majority of analysts are optimistic about the share and formulate an average price target of around CAD 9.70. Based on this, there is a potential of almost 40%.
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.
