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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


09. October 2020 | 11:58 CET

Barrick Gold, Newmont, Blackrock Gold: Opportunities in the sloping market

  • Precious Metals
Photo credits: pixabay.com

First the central banks and now possibly a generous new US President Joe Biden - when it comes to reasons for rising prices, market commentators always find an explanation. But one thing is sure: most support measures or capital injections are bought with capital that has either been borrowed or created by central banks. In any case, such measures should also boost the price of gold. Barrick Gold's stock looks back on a successful year and has gained a significant 53% - but how much potential does the gold blue-chip still have after the rise?

time to read: 2 minutes by Nico Popp
ISIN: CA09258M1014 , CA0679011084 , US6516391066


 

Author

Nico Popp

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.

About the author


Why Barrick has run out of steam

Even before the gold boom, Barrick Gold had already laid the foundations for positive development and reduced costs. Although sales of gold increased recently, production costs did not rise to the same extent. The market rewarded this efficiency. On a one-month horizon, however, a loss of around 7% is still on the books - it seems as if the fantasy of investors has evaporated after the significant price increases in gold and gold shares in the summer. Even the robust dividend policy could not change this recently.

In the next few months, it could become exciting around Barrick gold: The company intends to continue its austerity measures and has announced that it plans to part with unprofitable projects. Whether the rising gold prices will change anything about this remains open. However, the expected transactions could indicate where the Company wants to go - the market's interest in the share may then increase again. Currently, however, the air is out of the share.

Newmont has exciting projects in the pipeline

Newmont's share price also performed mediocrely over the past four weeks, losing 6.3% in value. However, on a 12-month horizon, Newmont's share price increased by almost 60%. This company benefited recently from rising gold prices. In part, however, good company figures were also due to special effects. Like Barrick Gold, Newmont is also highly profitable. Only a few months ago, the company completed the integration of Goldcorp and now sits on a colourful bouquet of investments and projects.

Newmont's portfolio could also be streamlined and selectively expanded in the coming months. With quarterly revenues well above EUR 2 billion, however, minor changes to the portfolio are unlikely to be as significant. Like Barrick Gold, Newmont is considered a leisurely stock that should gradually benefit from the gold boom.

Drill results raise expectations

The situation is different for the young gold explorer, Blackrock Gold. Although the stock has also been under pressure in recent weeks, the company released drill results that were positively received by the market yesterday. Recent drilling at the Tonopah West Project in Nevada returned results of 26 g/t gold (Au) and 2,030 g/t silver (Ag). According to the company, these are the highest mineralization values in the current drill program. Further results are to follow in the coming weeks.

At Blackrock Gold, results are consistently positive, and the company believes it can raise expectations for the project. The property has not yet been systematically tested for gold, according to the company, and may therefore have great potential. Hecla Mining mines are situated adjacent to the project - Blackrock suggests that mineralization at its Tonopah West Project may look similar. Blackrock Gold is a Canadian company and comprised of industry professionals with many years of experience in the resource sector.

Small, agile companies, as salt in the soup

While companies like Barrick or Newmont have a conservative risk/reward profile, Blackrock Gold is considered a speculative paper with great potential. In the event of a breakthrough in Nevada, the market capitalization of EUR 59 million should soon be a thing of the past. However, the risks are also less spread than with large players such as Barrick. Nevertheless, investors should not ignore small agile stocks from the gold sector - especially during market phases in which many stocks from the gold sector move sideways. Small companies can provide positive surprises.


Author

Nico Popp

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.

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.


Related comments:

22. December 2020 | 07:50 CET | by Nico Popp

Barrick Gold, Blackrock Gold, AngloGold Ashanti: Gold shares for every type of investor

  • Precious Metals

Whenever central banks and governments open the money floodgates, it's a positive signal for the gold price. After the initial reactions to the pandemic in March and April, the prices of gold companies went steeply upwards. Shares of many smaller companies in particular multiplied between April and August. Since then, the market has entered a consolidation phase. This phase could be an opportunity for investors - after all, the prices of gold shares, in particular, have fallen back, in some cases, significantly. At the same time, the pandemic is spreading, and governments and central banks are in a certain path dependency: to deny support to the economy now on the home stretch seems unlikely and also counterproductive given the aid already provided. Gold and companies involved in gold production should, therefore continue to have good prospects.

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19. November 2020 | 09:40 CET | by André Will-Laudien

Triumph Gold, Impala Platinum, First Majestic Silver: precious metals for Biden's debt policy!

  • Precious Metals

Economists refer to "asset inflation" as the increase in the price of all assets. What is meant by this is the general increase in the price of all asset investment vehicles such as bonds, shares, precious metals or real estate. We make no secret of it: ALL of the objects as mentioned above are paid with newly created money, the liquidity in the system ensures quasi permanently that assets are practically subject to a permanent and continuous increase in price. Shares, for example, have risen by an average of 9% per year since 2009. Bonds measured by the Bund future are quoted at a 100-year high with negative yields and a rich real negative interest rate, yes, and real estate in good locations has more than tripled in value over the last 20 years. In Munich, for example, the average weighted price per square meter for new residential buildings is around EUR 8,500 (range EUR 5,000-16,000) - in 2000, this was still EUR 2,850. Now we come to the precious metals using gold as an example: the yellow metal cost around USD 400 per ounce in 2005 and is now worth USD 1,875, a plus of 370% in 15 years. Let's take a closer look at the world of precious metals.

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