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October 19th, 2020 | 11:00 CEST

Barrick Gold, SolGold and BP: is it worth to be invested?

  • Resources
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For commodity producers, the price development of the underlying commodity often sets the pace for the share price development. Nevertheless, cost position and new potentials can cancel out this first rule. Diversification across several commodity classes can also prove advantageous. Project quality and the ability to adapt quickly to different conditions are a top priority. Who has done his homework well?

time to read: 2 minutes | Author: Carsten Mainitz
ISIN: GB00B0WD0R35 , CA0679011084 , GB0007980591

Table of contents:

    Barrick Gold - on schedule

    Barrick Gold reported preliminary third-quarter results at the end of last week. The Group will present its detailed quarterly report on November 5. According to the preliminary key figures, Barrick achieved sales of 1.25 million ounces of gold and 116 million pounds of copper in the third quarter. The corresponding production was 1.16 million ounces of gold and 103 million pounds of copper. The average market price for gold was USD 1,909.00/ounce, while the average market price for copper was USD 2.96/pound.

    Primary gold production in Q3 was slightly higher than in Q2, despite the production shortfall in Porgera, Papua New Guinea due to maintenance work. Without this production stop, the output would have been 3% higher. The Carlin and Pueblo Viejo projects performed exceptionally well.

    Gold production in the first nine months of the current fiscal year increased to 3.6 million ounces. The Canadians are therefore on track to meet the production forecast for the full year. Barrick Gold is and will remain a base investment in the commodity sector. The share price increased by over 60% within one year.

    SolGold - good newsflow over many weeks

    In the last four weeks, SolGold's shares have continued to perform well in the wake of good corporate news, gaining nearly 40%. The Company focuses on the discovery and development of world-class copper-gold projects in Ecuador. The Company has been active in the country since 2012 and focuses on the Ecuadorian portion of the world's most prosperous copper-gold belt, the Andean Copper Belt.

    A few days ago, the Company announced that it suffered a setback in its efforts to clean up its shareholder structure. SolGold had attempted to increase its ownership interest in the flagship Alpala project from 85% to 100%. Alpala has a resource of 21.7 million ounces of gold, 9.9 million tonnes of copper and 92.2 million ounces of silver. According to a recent study (PEA), the project (NPV) has a valuation of USD 4.4 billion.

    Although SolGold has not yet been able to realize its desire to increase its stake, the final word has yet to be spoken. In addition, the Company has a pipeline of 14 wholly owned and unencumbered projects covered by 75 issued licenses and covering 3,200 sqm throughout Ecuador. The share remains very promising.

    BP - when does the sentiment turn?

    The environment for significant oil and gas producers is extremely poor. The outlook for the global economy and the paradigm shift towards green energy sources are weighing on share prices. The sentiment is also depressed by reports that the OPEC states of Iraq and Libya are not adhering to production cutbacks and fears of a severe hurricane season.

    It is, therefore, no wonder that BP shares were unable to escape the pull of the negative oil price trend. In the last 12 months, the share price has fallen by almost 60%, twice as much as the price of oil.

    Much negativity has been priced into the price. Especially when sentiment is so bad, there are often opportunities for investors who swim against the current. On October 27, the Group will publish its quarterly results together with statements on dividend payments.

    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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    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.

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    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

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