Close menu




December 27th, 2024 | 07:00 CET

Barrick Gold, Thunder Gold, MicroStrategy – Precious metals and digital assets as an investment in uncertain times

  • Mining
  • Gold
  • Commodities
  • Digitization
  • Technology
Photo credits: pixabay.com

In a world that feels increasingly uncertain with each passing day, gold is becoming increasingly important. The times of high interest rates are over, and with central banks even considering interest rate cuts again, many investors are turning to the shiny metal. Why? While gold does not pay interest, when the alternatives do not offer decent returns either, it suddenly becomes quite interesting.

Geopolitical crises, which seem never-ending, also play a significant role. The war in Ukraine, tensions in the Middle East – issues like these are once again making gold a hotly sought-after safe haven. Central banks, which have bought a record amount of gold in recent years, are also helping to keep the price stable. Not to mention the still tangible inflation and economic risks.

In any case, the experts agree: the current consolidation in the gold price – that is, this minor setback – is likely to be only a breather. In the long term, the trend is clearly pointing upwards. And while gold continues to have its fans, many investors are also increasingly looking towards Bitcoin and other cryptocurrencies, which are also considered a hedge in the current climate.

time to read: 4 minutes | Author: Armin Schulz
ISIN:

Table of contents:


    Barrick Gold - Good key figures and solid financial position

    The Canadian mining company Barrick Gold reported decent results for 2024. In the third quarter, adjusted earnings per share rose by 33%, while free cash flow grew by 24% to USD 444 million. These figures are based on stable gold production and a strong 12% increase in copper production. Barrick also managed to reduce its net debt by 27% to USD 500 million. Nevertheless, analysts remain cautious in their valuations of the stock due to short-term uncertainties such as fluctuating commodity prices and the complex corporate structure.

    Despite its economic success, Barrick is struggling with problems in Mali. Disputes with the local government over the Loulo-Gounkoto mines have led to blocked gold exports and the detention of employees. The Company has initiated international arbitration proceedings and is threatening to halt mining operations if no agreement is reached. If operations are suspended, this could significantly impact Mali, as the mines account for around 10% of the country's annual economic output. However, the conflict could also have a short-term negative impact on the share price.

    Barrick is looking to the future despite these hurdles. Production at strategic mines such as Pueblo Viejo in the Dominican Republic and Lumwana in Zambia is expected to increase in the fourth quarter. Mega projects such as the development of Reko Diq in Pakistan and the expansion of Lumwana also offer growth potential. With a virtually debt-free balance sheet and a dividend yield of 2.6%, Barrick remains attractive, especially for long-term investors, even if short-term risks exist. These risks have pushed the share price down to USD 15.46.

    Thunder Gold - Gold price provides a tailwind

    In addition to the major gold producers, smaller exploration companies such as Thunder Gold are also benefiting from the boom in the gold price. These companies have the advantage of being able to advance their projects more easily and attract investors in a strong market environment. Thunder Gold is based in Canada and focuses on the discovery and development of gold deposits. With four of its own properties and five joint venture interests, the Company is broadly positioned.
    The Tower Mountain project in Ontario is their absolute highlight. It covers an impressive 2,500 hectares and is 100% owned by Thunder Gold. Particularly exciting: the gold mineralization extends through all rock types and is very consistent throughout the property with an average grade of about 1 g/t Au. One of the factors that would make the property of interest to a major mining company is that this seems to be a large deposit which can lead to a potentially long mine life without immediate concerns about depletion. In addition, the location scores well, with excellent infrastructure: directly off the Trans-Canada motorway (as well as being next to the National rail lines) making transport efficient and cost-effective. And with the hydro lines right beside the property, Tower Mountain is well-situated for year-round activity, being just 45 minutes from the international port city of Thunder Bay, Ontario.
    Thunder Gold recently created a lot of interest with new channel sample results. Impressive gold grades were measured at the so-called 'P-Target', such as 9.12 g/t over 12.66 m and 4.93 g/t over 24.87 m – two of the best results the project has produced to date. In addition, soil tests indicate that the mineralization extends even further to the southeast.
    The next drilling program will hopefully further highlight the potential in the ground. With an attractive share price of just CAD$0.05 and a market capitalization of CAD 10.3 million, the stock is a classic small cap. While there is always some risk associated with smaller cap companies, those who invest in companies with promising fundamentals could hit a real jackpot.

    MicroStrategy – The go-to for Bitcoin Investment

    While gold shines in the analogue world, the digital world has its own star in Bitcoin. And here, there is no getting around MicroStrategy. The US company has completely focused on Bitcoin and brought more than 439,000 Bitcoins onto its books – a portfolio currently valued at over USD 43 billion. This not only makes the Company the largest holder of Bitcoin of any publicly listed company, but also makes it a proxy for the cryptocurrency in the corporate sector.

    It is interesting to note how MicroStrategy has financed the whole thing: in addition to convertible bonds, the Company relies on fixed-income financial markets to secure capital independently of the whims of the stock market. While this provides stability, it also increases the dependency on the extremely volatile Bitcoin price. It is, therefore, a balancing act – one that has worked quite well so far.

    A highlight was: on December 23, MicroStrategy was addes in the Nasdaq-100 index. This inclusion is not only an honour but could also open the door to further institutional investors. With a current price of USD 346.20 and a market capitalization of almost USD 89 billion, the share has come a long way – it has increased by more than 500% in 2024.

    Of course, the whole thing is not without risk. MicroStrategy's share price is heavily dependent on Bitcoin. However, for those who believe in the long-term future of the cryptocurrency, this Company offers an exciting opportunity to profit from it.


    Whether traditional gold or digital cryptocurrencies – in uncertain times, both have their place. While major producers such as Barrick Gold score points with stable figures and growing projects, exploration companies such as Thunder Gold offer the chance of higher returns – albeit with a corresponding risk. For those who want to get involved in the digital sector, MicroStrategy may be a fitting choice. So, the decision depends not only on personal preference but also on how much risk one is willing to take.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Armin Schulz on February 18th, 2025 | 07:00 CET

    Palantir, First Nordic Metals, Barrick Gold – WATCH OUT: These stocks are on the move!

    • Mining
    • Gold
    • Commodities
    • Software
    • hightech

    The tech industry celebrates Palantir as an AI pioneer: With a 390% price increase in 2024 and a forecast of USD 3.75 billion in revenue in 2025, the Company is convincing with its government and commercial AI solutions – but the P/E ratio of 600 raises sustainability questions. Meanwhile, First Nordic Metals is building on exploration momentum in the Scandinavian gold sector: new anomalies and cost-efficient drilling techniques are driving the stock. Barrick Gold, in turn, combines robustness (19% revenue growth) with geopolitical challenges in Mali and long-term, large-scale projects. We take a look at which companies offer potential and where valuations could be too high.

    Read

    Commented by Armin Schulz on February 17th, 2025 | 07:30 CET

    TUI stock weak after numbers – Nova Pacific Metals and Super Micro Computer fare much better

    • Mining
    • Commodities
    • Travel
    • AI
    • chips

    The latest quarterly figures from TUI disappointed investors. Despite optimistic booking forecasts, the share price corrected by up to 17% within two days after the expected revenue targets were missed. This raises questions about the sustainability of the travel Company's comeback, which most recently wanted to appeal to new customer groups with low-cost offers. Nova Pacific Metals and Super Micro Computer present a very different picture. Nova Pacific's share price rose by over 80% within three days. Super Micro is raising hopes of a turnaround despite delisting risks due to a new auditor and attractive AI prospects – supported by a low P/E ratio of 10. We take a closer look at the three companies.

    Read

    Commented by Stefan Feulner on February 17th, 2025 | 07:00 CET

    Coinbase, Almonty Industries, Tomra Systems – These 3 high-flyers promise returns

    • Mining
    • Tungsten
    • RareEarths
    • crypto
    • manufacturing

    The earnings season for the full year 2024 is in full swing, with quite a few companies significantly outperforming analyst forecasts. Another topic currently keeping the world in suspense is US President Donald Trump's "America First" policy. As can be seen from the negotiations with Ukraine, the "new sheriff in town" is concerned with securing rare earth deposits. When it comes to the metal tungsten, however, the US government seems to be already one step ahead, and a lesser-known company is likely to emerge as the winner here.

    Read