November 21st, 2024 | 07:30 CET
Barrick Gold, Globex Mining, Coinbase – When the rockets fly: Your anti-crisis investment
In today's interconnected world, geopolitical tensions not only dominate headlines but also have a direct impact on financial markets and investment decisions. In the face of recent escalations in the Middle East and Ukraine, the search for safe investments is more important than ever. While gold continues to shine as a proven hedge, commodities and cryptocurrencies are also gaining investors' attention. In the case of commodities, Western countries are heavily dependent on China and Russia. Since Donald Trump's election victory in the US, cryptocurrencies have gone through the roof. These investment options not only offer protection but also opportunities for significant profits. We look at a company from each sector.
time to read: 4 minutes
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Author:
Armin Schulz
ISIN:
BARRICK GOLD CORP. | CA0679011084 , GLOBEX MINING ENTPRS INC. | CA3799005093 , Coinbase | US19260Q1076
Table of contents:
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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Barrick Gold – The fourth quarter should be better
This year, the price of gold has enjoyed a remarkable upturn, driven by geopolitical uncertainties and the expansionary monetary policy of central banks. Since the beginning of the year, the price of a troy ounce of gold has risen by almost 33%. Experts at Goldman Sachs and Bank of America predict that the price of gold could reach USD 3,000 by 2025. Despite this positive trend, the strong USD since Trump's election has been slowing the development somewhat, as it increases costs for foreign investors.
Barrick Gold reported a rise in net profit to USD 483 million or USD 0.28 per share for the third quarter, despite a 9.2% year-on-year decline in gold production. The experts had expected USD 0.30. The realized gold price jumped 29% year-on-year. However, higher costs, particularly in Nevada, weighed on margins. Nevertheless, the Company is maintaining its production targets and expects improvements in the fourth quarter, supported by an increased throughput rate and better ore grades at several mining projects.
Barrick is optimistic about the future. The Company has left its dividend at USD 0.10 per share and plans to buy back further shares as part of a USD 1 billion share buyback program, of which USD 95 million has already been used. CEO Mark Bristow emphasizes the focus on organic growth and the intention to significantly increase reserves through new projects such as Reko Diq and Lumwana. This strategic approach should position Barrick well for future market cycles and offer shareholders the potential for long-term returns.
Globex Mining – Growth through a unique business model
If you are an investor looking to invest in something other than gold and copper, like Barrick Gold, you should take a closer look at Globex Mining. The Company stands out thanks to its unique business model in the mining industry, which resembles a "mineral bank". Instead of focusing on high-risk exploration, Globex invests in acquiring, developing and optioning mineral projects. This allows the Company to spread risk and generate stable income through royalties and joint ventures. With over 250 projects in its portfolio, spanning precious, base and specialty metals, Globex is well positioned to benefit from a range of market conditions.
On November 13, 2024, Globex announced a new drilling program at the Ironwood Gold Deposit in Quebec, which aims to improve and possibly expand the previous resource estimate. This program includes 17 drill holes designed to better define the current inferred resource of 243,200 tonnes, grading 17.26 g/t gold and 2.61 g/t silver. The project demonstrates Globex's commitment to optimizing existing resources and taking advantage of the potential opportunities presented by rising precious metal prices. The appreciation makes the subsequent marketing of this property significantly easier for Globex.
On November 19, 2024, Globex's partner Emperor Metals Inc. reported promising metallurgical test results for the Duquesne West Gold Project. The test work indicated gold recoveries of up to 100% in certain styles of mineralization, indicating the effective processability of the ore using conventional techniques such as gravity separation and carbon-in-leach. These results strengthen investor confidence in the potential of this project. The continuation of this positive trend could form the basis for an expanded resource estimate in Q1 2025, which would open up further investment opportunities. Although the stock has gained significantly in recent weeks, currently trading at CAD 1.07, it still appears inexpensive, with a market capitalization of CAD 60 million.
Coinbase – Boost from Donald Trump
The re-election of Donald Trump as US president has sparked optimism in the cryptocurrency sector among investors. As a fervent supporter of digital currencies, Trump plans to make the US the "crypto capital of the world", which has already led to a significant rise in the price of Bitcoin. In addition, demand for crypto-related stocks has increased as regulation is expected to be relaxed. Analysts predict that Trump's plans to deregulate and support cryptocurrencies could pave the way for broader adoption of digital assets in the financial sector, which also benefits Coinbase.
Instead of investing money in a single cryptocurrency, one should take a closer look at the crypto exchange itself. The Company, one of the leading players in the crypto sector, posted weaker-than-expected figures in the third quarter. Although revenues reached USD 1.2 billion, they were below forecasts due to declining trading volumes. Crypto transaction revenue dropped 27% from the previous quarter, demonstrating its reliance on market momentum. Nevertheless, Coinbase remains committed to diversifying its business through subscription and service revenue with the goal of growing it to over USD 2 billion in the coming year.
With a positive outlook on the future, Coinbase is using its strong balance sheet to expand into new markets despite challenges such as the decline in the value of Ethereum and lower interest rates. The Company is relying on technologies such as Base, its layer-2 solution, to promote low-cost transactions and attract new users. Upcoming regulatory changes in the US could expand business potential, particularly in the area of crypto-derivatives. After reports of a meeting between President-elect Donald Trump and CEO Brian Armstrong to discuss personnel decisions for the administration, the stock jumped further and is currently trading at USD 324.57.
In times of geopolitical uncertainty, Barrick Gold offers opportunities for long-term returns with its stable investments in gold, supported by planned strategic projects. Globex Mining relies on a unique business model that generates diversified income streams from the optioning of mineral projects and efficiently diversifies risk. Globex stands out with its expansive strategy and diversified portfolio of a wide range of metals and minerals. Coinbase benefits from the optimistic sentiment in the crypto market, fueled by political support and technological innovations. All three companies offer different approaches to hedging and increasing profits in uncertain times.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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