July 28th, 2021 | 10:14 CEST
Barrick Gold, Mineworx, TUI: Summertime is investment time
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At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Barrick Gold: Truly the gold standard?
Prices on the major stock exchanges are currently bobbing along. The gold price has consolidated after its rapid rise last year and shaken off some skeptics. This calm in the market is deceptive. Indices that track the volatility of the S&P 500 or other blue-chip barometers are trading at long-term lows. It appears that all it takes is a trigger to get the markets moving again. As a result, this is a good time to position oneself, adjust weightings in the portfolio and make strategic decisions, for example, for an investment in gold. Many private investors consider the shares of Barrick Gold to be the first port of call. It is understandable - after all, Barrick Gold is the world's second-largest gold producer.
Recently, the stock picked up a bit and managed a return of 2.4% in just 5 days - for Barrick, this is almost a dynamic move. Previously, one had at times the impression that the stock was lagging the gold price a bit. Even during the most incredible euphoria in 2020, the share got going but could not maintain the level. Shareholders had the vain hope that Barrick would invest on a larger scale. To date, however, there has been no news on this. Barrick's stock is very solid and also offers a dividend. However, if you want to invest conservatively, you might be better off with an ETF on gold producers.
Mineworx: Recycling makes the world a better place
The situation is entirely different for the young Company Mineworx. Together with the US recycling specialist Davis Recycling, the Canadians want to extract platinum and palladium from diesel catalytic converters. A commercial plant is to be built for this purpose in the US state of Tennessee. Mineworx recently announced that it had completed a pilot plant. The plant is designed so that the Mineworx team can still fine-tune processes and techniques to further increase efficiency and secure even more of the valuable precious metals. The Company sees its business model as a great opportunity - currently, only about 30% of all catalysts are recycled. Together with its partner Davis Recycling, which has understood the business for twenty years, Mineworx wants to take off. "Now that we have successfully completed the construction of the pilot plant, we are looking forward to moving to the testing phase of the catalyst project. This is a big step for our Company as we work with our partner Davis Recycling to bring our technology to the commercial stage," commented Greg Pendura, President and CEO of Mineworx.
The Canadians' second asset is a historic iron ore concession in southeastern Spain. Here Mineworx holds a 100% interest and suspects a high-grade resource of up to 42 million t. iron ore. An exploration program is planned and is expected to commence once permitting procedures have been completed. Mineworx's stock must be considered speculative. Recently, however, the value climbed upwards. There is currently around 100% clearance to the highs for the year. Given the early stage of the Company, positive news could also give the share new impetus. However, investors should add the stock to their well-thought-out asset allocation according to their own risk profile. If all goes well, Mineworx can benefit from the general development of commodity prices and their operational progress.
TUI: Consumption instead of investment
With most people in Germany thinking more about consuming than investing, investors may also find TUI's stock exciting. Since the group's rescue thanks to government aid, however, the share has at best been moving sideways with a slight upward trend. The renewed climb in incidences is a cause for concern. Recently, Spain and the Netherlands have also been classified as high-incidence areas. That makes it difficult for the unvaccinated in particular, as quarantine is required on their return. Currently, there are also discussions to restrict travel further and to introduce a general testing obligation. All measures are sensible from an epidemiological point of view, but they are poison for companies like TUI. Even the hope for an autumn season is no reason to invest in the share.
While any bet on TUI currently seems ill-founded, an investment in a solid gold producer like Barrick can be a good choice. However, the stock is lagging in the overall market. Mineworx shares could offer a good combination of an investment in the commodities market and innovative recycling solutions. While investors should keep in mind that this is speculative, the opportunities are there.
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