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May 4th, 2021 | 11:50 CEST

Barrick Gold, Rio Tinto, BHP, NewPeak Metals: Gold - The inflation protection comes!

  • Gold
Photo credits: pixabay.com

The technology stocks corrected somewhat in recent days, which also cost the blue-chip indices some points. But still, everything is technically in butter. However, we should keep an eye on two important adjusting screws. The bond and precious metals market! Bonds showed weakness recently because the increased US yields pulled all global bond markets into the red. The Bund future is also approaching the critical 170 mark again. If it breaks sustainably, a small sell-off in debt instruments should not be surprising. In this movement, the precious metals should start to rally. Yesterday, gold jumped to USD 1,797 - this will now be exciting!

time to read: 4 minutes | Author: André Will-Laudien
ISIN: CA0679011084 , GB0007188757 , GB00BH0P3Z91 , AU0000104374

Table of contents:


    Barrick Gold - A rock in the surf

    Barrick Gold remains a rock in the surf. The number two Mayor from Toronto is a classic buy-and-hold stock for a long-term gold portfolio. That is because, for years, the industry giant has tactically relied on acquisitions rather than its exploration projects, a strategy that management says it will continue to pursue and, if necessary, supplement with diversification through the purchase of copper mines. Again, an important trend is being recognized and implemented.

    In any case, the Barrick quarterly figures continue to be convincing, although slightly less gold was produced compared to 2019 due to Corona. However, the Company has come through the 2020 pandemic year entirely without mine closures and is implementing its debt reduction convincingly. On a net basis, Barrick has been debt-free since mid-2020.

    In the summer of 2020, Warren Buffet, or rather his investment firm Berkshire Hathaway, made headlines because the traditionally gold-critical star investor had invested in Barrick Gold. As can be seen from a recent 13F report, the star investor has since completely liquidated his position. The Oracle of Omaha was right with his sale this time in the short term. But now, with clearly more favorable entry prices, the Barrick paper could become interesting also for Berkshire shareholders again!

    Rio Tinto Ltd. - Force majeure burdens the quarter

    Mining giant Rio Tinto Ltd. reported in its quarterly results that iron ore production fell 2% year-on-year to 76.4 million tons, but that was due to wetter-than-average weather at its mines through February. Labor availability was hampered due to the pandemic, this interrupted essential maintenance work and subsequently, Tropical Cyclone Seroja caused downtime in mine and port operations.

    The port at the Amrun mine was closed for a full 14 days due to heavy seas and cyclones, but aluminum production still increased by 3% to around 0.8 million tons. Copper production totaled 120,500 tons in the first quarter, 9% lower than a year earlier. Then, on March 31, there was also a fire at one of the port's two processing plants, but the forecast for the full year remained stable.

    "Despite all the adversities, we delivered a solid overall operational performance in the first quarter," said Chief Executive Officer Jakob Stausholm. "We have set clear priorities to develop a stronger Rio Tinto." This includes an ESG program that strives for impeccable environmental, social and corporate governance while continuing to deliver superior returns to investors. Rio Tinto remains a blockbuster in the resources sector with its market position.

    BHP Group plc - The Australian giant is getting greener

    Mining giant BHP also delivered its quarterly report last week, reporting record iron ore production from its Western Australian properties. Production figures are up 4% year-to-date to 188.3 million tons of iron ore, iron ore prices are the highest in 10 years, and margins are adequate.

    Looking ahead, the mining Company expects to further strengthen its relationship with Asia and seek lower carbon emissions in line with the Paris Climate Agreement. Relying on the solid performance of its Pilbara projects, BHP has maintained its fiscal 2021 guidance and expects production volumes to be in the upper half of the forecast range. The copper forecast was raised to a range of 1.5 million to 1.6 million tons as the mining group expects stronger performance at its Escondida mine in Chile.

    Because of the pandemic, there are still minor project-related uncertainties, but the share price of the Australian giant will probably continue to point north. The Company also boasts a dividend yield of over 5%.

    NewPeak Metals - A global portfolio of promising properties

    Australian explorer NewPeak Metals Ltd. has several projects with great geographic diversification. These are located in New Zealand, Argentina and Finland. The high deal flow is due to the enterprising management team around David Mason, Neil Stuart and Nick Mather. Together, they bring over 70 years of mining experience to the table.

    The Company reports the completion of drilling in the West Block at the Cap Burn gold project in Otago, New Zealand, along with the resumption of drilling in the East Block. Initial drilling in the Vetas Cachi area returned elevated silver grades associated with promising gold mineralization. At Vetas North West, Morena and Sofia, the gold present was visible even to the naked eye. Later in 2021, NewPeak is focused on preparing for drilling at the Las Opeñas Gold Project in San Juan Province, Argentina. The main target is a complicated vein system ranging from 200m to 2,200m in length.

    In Bergslagen, Sweden, initial exploration has now added tungsten to the metal portfolio, a strategically important and rare metal. The acquisition of further southern Finnish gold concessions from Sunstone Metals was also successfully completed. NewPeak Metals raised an additional AUD 1.6 million in the current quarter, which has been used to fund ongoing drilling. The secondary listing in Frankfurt has taken place, now European investors also have the opportunity to invest at a low cost. The share price in Australia is between AUD 0.002 and 0.003, bringing the market capitalization to AUD 14.2 million. Due to the large spread, please be sure to limit.


    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.

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    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



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