Close menu




August 5th, 2020 | 07:06 CEST

Barrick Gold, Osino Resources, Triumph Gold - who will double next?

  • Gold
Photo credits: pixabay.com

August 4th, 2020 will probably go down in history books, the day when the gold price first climbed above the USD 2,000.00 mark. But perhaps it will also lose significance, because the USD 2,500.00 and USD 3,000.00 mark may soon fall. Why? Quite simply because, as the money supply increases, more and more people are fleeing into the oldest currency in the world: gold. The advantage of physical gold over certificates and other printable products is its uniqueness. While central banks around the world print money to maintain social peace during the Corona restrictions, the price marks for physical gold will fall like dominoes.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA0679011084 , CA68828L1004 , CA8968121043

Table of contents:


    Gold production will shrink

    Companies such as Barrick Gold, Iamgold and Newmont are responsible for the gold supply. Without these large producers, it would be impossible to satisfy the appetite of the market. However, experts also expect gold production to peak in 2020. According to forecasts, this year around 118 million ounces of gold will be brought to the market by the largest producers. Starting next year, a decline in the annual quantity is expected. In 2029 only 65 million ounces of gold are expected to reach the market. There is still some time to go before then, but a decline of around 45% in annual production volume by the end of the decade has the potential to cause some panic.

    Gold supply is getting harder

    B2Gold, Barrick Gold and Newmont, as well as the other big names, have already recorded a reduction in reserves of around 34% overall since 2012. In addition, the time window from discovery to production is lengthening on average from year to year. Whereas in 2000 it took around ten years to extract the first gold, by 2010 it will have taken 20 years and by 2020 it is expected to take 30 years. The reasons for this include environmental protection requirements and approval procedures.

    Takeovers and mergers will increase

    The producers are aware of this development and are also engaged in the exploration and development of their own projects. As the price of gold rises, the margins of these companies will increase significantly and fill the war chest for takeovers and mergers. The focus will soon be on companies in the exploration and development stage that have already discovered or are about to discover more than one million ounces of gold. Ideally, takeover targets in already established regions.

    Focus is on exploration

    There are some companies that could be considered as a possible target. Osino Resources is focused on the development of its own gold projects in Namibia. CEO Heye Daun has successfully built up a company in the past and sold it to B2Gold. Osino is now also active in the familiar neighbourhood and will probably be taken over by a large producer in the foreseeable future.

    Triumph Gold has projects in the Yukon and Newmont is already the largest shareholder. It is expected that these companies will be able to expand the gold deposits with further drilling, thus increasing the probability and value of a takeover. Exploration, i.e. the work of these companies, for example, is where the future supply for the major producers comes from.


    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.


    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



    Related comments:

    Commented by Stefan Feulner on March 19th, 2024 | 07:15 CET

    Nvidia, Manuka Resources, Aurora Cannabis - All the rage

    • Mining
    • Vanadium
    • Gold
    • AI
    • chips
    • Cannabis

    The stock markets continue to boom. The DAX was able to climb above the psychologically important 18,000-point mark, at least in the short term, while other asset classes, such as gold and Bitcoin, also reached new highs. By contrast, different sectors, such as hydrogen and cannabis, have continued to plummet in recent weeks. The latter, in particular, has received an upward boost from the US government's statements, which could herald a trend reversal.

    Read

    Commented by Stefan Feulner on March 12th, 2024 | 06:45 CET

    Barrick Gold, Desert Gold Ventures, Newmont - When will the next surge follow?

    • Mining
    • Gold
    • Inflation

    Gold is shining again. After reaching a new all-time high, the crisis and inflation hedge is back in the mainstream. While there has been little to read about the yellow precious metal in the newspapers in recent weeks, gold articles are currently among the most visited. During the initial impulse of the recent rise, mining stocks lagged significantly. However, if the positive trend continues, they could make up for this with disproportionately high price gains.

    Read

    Commented by André Will-Laudien on March 6th, 2024 | 11:40 CET

    Bitcoin soon at USD 100,000? The music is also playing at Rheinmetall, Renk, Manuka Resources and BYD!

    • Mining
    • Vanadium
    • Gold
    • armaments
    • Electromobility

    The stock market is not a one-way street. While Bitcoin reaches new highs daily, many stocks are still on the sidelines. Only 21% of all listed shares reached a new high in 2024, yet the Nasdaq 100 and the DAX 40 index are at their all-time highs. Only a few stocks are gaining favour with investors; others are being left behind. The current focus is on high-tech stocks that enable ever-greater computing power, such as in mining or artificial intelligence. In addition to gigantic amounts of data, mining requires trillions of computing operations to be carried out in a very short time. There are rewards in the form of new bitcoins for confirming transactions on the blockchain, but they will be halved by the next "halving" event in April. Armament values, on the other hand, seem to be heating up. So how much time is left to reap further leaps in returns?

    Read