Barrick Gold, Globex Mining, BP - Commodities In the spotlight: Supercycle started?

Barrick Gold - Benefits twice over

Barrick Gold is benefiting greatly from the recent rise in the price of gold. However, the price of copper has also risen significantly. China has recently "bought the market dry" here, pushing prices up. At the same time, China's market support measures and a weak US dollar are driving prices. Reuters recently reported that Russia and China are manipulating the global copper trade by disguising fresh copper as scrap to circumvent international sanctions and taxes. These events highlight China's growing influence on the copper market. As Barrick is also well positioned in the copper sector, there is also a tailwind for the Company.

China is also buying gold. The current bull market in gold is not yet sufficiently reflected in the share price. Barrick's impressive portfolio of world-class gold and copper mines is complemented by several future projects, some of which will increase production capacity this year. The structural changes in the global economy are providing sustained support to the gold market. At the same time, demand for copper could double over the next 10 years as a result of global urbanization and electrification.

A profitable horizon, therefore, looms for Barrick, as the Company could experience the beginning of a new commodity supercycle. With the increased prices, it should be possible to exceed the forecasts for 2024, even if this will only be reflected in the figures for the second quarter. The forecast is currently based on an assumed selling price of USD 1900 per ounce of gold and USD 3.50 per pound of copper. The gold price was already significantly higher in Q1. This could also mean a higher dividend for shareholders. The share is currently trading at USD 17.37.

Globex Mining - Undervalued

Globex Mining has a commodity portfolio that goes well beyond gold and copper. The diverse range of metals and minerals found in legally secure countries such as Canada, Germany and the US includes base metals, specialty metals & minerals and, above all, precious metals. In total, the Company owns 247 different projects, including 123 precious metal projects, 68 base metal and polymetallic projects and 56 projects for specialty metals and minerals such as lithium, titanium, rare earths, uranium, cobalt and many others. For those looking to diversify their commodity investment, Globex Mining is the right choice.

Globex Mining operates a business model that focuses on the acquisition and enhancement of mineral projects. The Company diversifies its portfolio through exploration and expertise to maximize the potential of its projects. With a focus on income through options, sales, and royalties, Globex strives for financial stability without debt. All Globex Mining projects and licenses are carefully selected based on historical resources, drill results, production history and geological potential. Royalty agreements have been signed for 100 projects.

The business model is risk-free for the Company. The success of the concept is evident from the fact that the Company has been able to acquire over 100 additional projects since 2016 without incurring debt or diluting shareholders. For those who want to learn more, CEO Jack Stoch's company presentation at the 11th International Investment Forum today, April 17, at 2 pm will be worth watching. Although the share has recently gained ground and is currently trading at CAD 0.93, giving it a market capitalization of CAD 52.5 million, it is significantly undervalued. This means that each project is valued at only around CAD 213,000.

BP - Takeover rumors

BP is the smallest oil multinational and is not only a major player in traditional oil and gas production but is also undergoing a diversified transformation to become an energy company of the future. In 2024, the British conglomerate will be agile along the entire value chain. With around 1.4 million barrels of oil equivalent per day, BP is focusing on profitable growth while simultaneously making a strong push into the rapidly developing renewable energy sector. This reflects the Company's ambition to become an integrated energy company without neglecting its fundamental role in fossil fuels.

BP's move into low-carbon energy is particularly visible through investments in photovoltaics and its growing portfolio of EV charging stations. Over 2,700 megawatts of grid-connected capacity confirms the serious drive to help shape the energy transition. Also noteworthy is the strategic development in the customer and product segment, where the expansion of the offering goes beyond conventional charging station services and is increasingly moving into the sphere of holistic customer solutions.

A particularly interesting chapter could open up with the possible interest from the oil giant Adnoc from the United Arab Emirates (UAE). The news agency Reuters recently reported on talks between Adnoc and BP, which have yet to yield a final outcome. Both the prevailing market conditions and overt plans for solid shareholder returns could have a positive impact on share performance as the Company faces an ever-changing energy sector. One share is available for EUR 6.06.

While reports of a weakening economy are everywhere, the price of copper is rising. This has often been an indication that the economy is doing well. Geopolitical tensions will have played their part in the rise in gold, copper and oil prices. Barrick Gold is benefiting twice over and is well-equipped for the future. The increased prices will only take effect in the 2nd quarter. Globex Mining is like a commodity ETF. The commodity portfolio offers everything your heart desires at a very favorable price. The share will rise in the long term. BP has already risen significantly, probably due to the dividend yield, but also to the burgeoning takeover rumors. One should wait for a setback here.