Close menu




May 13th, 2021 | 07:10 CEST

Barrick Gold, Theta Gold Mines, Northern Data: Where growth meets substance

  • Gold
Photo credits: pixabay.com

Gold is quietly stalking its way back to the USD 2,000 mark. In recent weeks, there have been increasing signs that inflation could become an issue again in the long term. At the same time, central banks are making no move to raise interest rates. On the one hand, this suggests that central banks might miss the right time to curb inflation and, on the other hand, that the relative attractiveness of gold to interest-bearing bonds will continue. Reason enough to take a closer look at exciting companies from the sector and an up-and-coming stock from the cryptocurrency sector.

time to read: 3 minutes | Author: Nico Popp
ISIN: CA0679011084 , AU0000035701 , DE000A0SMU87

Table of contents:


    Brodie Sutherland, CEO, Tocvan Ventures
    "[...] One focus will be on deposits near the surface. These would be good arguments for a quick production decision using the low-cost heap leaching method. [...]" Brodie Sutherland, CEO, Tocvan Ventures

    Full interview

     

    Barrick Gold: Big ship with a catch

    Barrick Gold's stock is a perennial favorite for many investors. Why? The Company is a global leader when it comes to producing gold. Barrick is active on many continents and is thus very broadly positioned. While smaller and mid-sized producers fail to meet their targets with just a few problems, Barrick Gold has more room to maneuver, making the stock a solid value. But how stable is Barrick Gold actually? The mega-company drew some displeasure from investors, especially last year. The reason: Barrick Gold had completely lost its growth fantasy. Whoever mines gold on a large scale must also replace these reserves, and this is where Barrick Gold faltered in 2020. Among other things, the pandemic made it challenging to look at new projects and put them through their paces. While Barrick Gold had significant free funds in 2020, the investment backlog ensured that the Company paid out a special dividend. But it did not do the share price any good. On a one-year view, it is still down 18.5%.

    The share has benefited from the rising gold price in the last five days, but this is only the logical consequence. To be able to take up a dynamic upward trend sustainably, Barrick must break new ground. The takeover of a smaller company could be just as much a part of this as a massive merger. The decision-makers at Barrick probably still have in the back of their minds that a business around strategic industrial metals would suit the Company well. However, nothing concrete has emerged so far. The share can continue to profit from rising prices for precious metals but is unlikely to beat the overall market. Barrick Gold lacks imagination.

    Theta Gold Mines: This stock will be a gold producer in 2021

    In contrast, the shares of Theta Gold Mines have more fantasy. The Company is on the verge of becoming a producer in 2021 and has rejected several takeover bids in the past. The Theta project is located in South Africa, not far from the Kruger National Park and wants to shine with production costs that should be around 50% of the current gold price. Four mines are to be built on the site of Theta Gold Mines, including open-pit mines initially and underground mines later on. Thanks to the gradual commissioning, Theta Gold Mines wants to generate cash flow and achieve growth quickly. Eventually, the Company is expected to produce 350,000 ounces of gold.

    Analysts at Zacks Small Cap Research emphasize that the use of modern mining techniques and processing around gold could lead the Company to success and define a fair valuation of AUD 0.69 per share. Currently, one share is trading at AUD 0.24. The transformation from project developer to producer can be an exciting market phase for investors. The gold in the ground is valued much higher for a producer than for a pure developer. Investors looking for growth opportunities around gold should take a closer look at the stock.

    Northern Data: Exciting story, tumbling stock

    These days, those who want to invest in growth often think of cryptocurrencies. Northern Data's stock represents data centers used for, among other things, mining cryptocurrencies. Other uses include video rendering and other compute-intensive services. Just yesterday, Northern Data entered into a new collaboration with Canadian mining services provider Digihost Technology Inc. Part of the agreement is the sale of high-performance mining equipment. Furthermore, there is a profit share for Northern Data in the mid-single-digit million range. Since the Company has other mainstays besides cryptocurrencies, the stock could be an interesting alternative for cautious investors at first glance. However, the chart picture around the stock does not look rosy in the short term. On a three-month horizon, the stock lost almost 18%. However, the EUR 75 mark could provide support.

    The opportunities to position oneself in the face of growing uncertainty around inflation are manifold. While cryptocurrencies are already the talk of the town and the sector has potential for setbacks, there are still hidden champions in gold stocks. Investors would do well to take developing trends seriously and pay equal attention to substance and growth prospects when making specific investments.


    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

    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



    Related comments:

    Commented by Nico Popp on December 5th, 2022 | 10:36 CET

    Where gold shines brightest: Barrick Gold, Desert Gold, Uniper

    • Mining
    • Gold
    • Energy

    Secretly and quietly, gold has stalked towards the USD 1,800 mark. The reasons are the weaker dollar in combination with a possible end of the interest rate turnaround and the growing uncertainty: Even if current economic data, such as the recently published US labor market report, give hope, the risks are growing in the long term. We look at two exciting gold stocks and use the example of Uniper to explain why gold could soon be booming.

    Read

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on December 1st, 2022 | 09:46 CET

    BYD, Auxico Resources, Hensoldt, Rheinmetall - Prepared for the future

    • Mining
    • Gold
    • RareEarths
    • Defense

    Russia's invasion of Ukraine at the end of February this year changed everything. While global stock markets fell into a state of shock, shares in defense companies boomed. With the arms buildup in the Western world, the future looks bright for companies that were still viewed critically before the war of aggression. However, in order to produce enough tanks, aircraft and other war equipment, the industry needs a variety of critical metals for which demand already exceeds supply.

    Read