09. April 2021 | 09:00 CET
Barrick Gold, Triumph Gold, Gazprom - Goodbye crypto, the gold rebound is coming!
The investment in precious metals is generally referred to as long-term asset protection. An ounce of gold has gained almost 500% since 2005, and when averaged over a year, this provides a return of 9.6%. Stocks have risen by an average of 9.2% per year since 2009, while bonds, as measured by the Bund future, are trading at a 100-year high with negative yields and a negative interest rate in real terms. Real estate in good locations has more than tripled in value over the past 20 years. The inclined observer asks himself today, with which assets can one still achieve a real increase in wealth? Away from the capital markets, we recommend selected paintings and sprightly vintage cars, but 5-10% should flow into gold and silver, in part physically too, of course.
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ISIN: CA0679011084 , CA8968121043 , US3682872078
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
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.
Barrick Gold - The Gold Standard Stock
Anyone who trades gold is undoubtedly familiar with the standard stock, Barrick Gold, based in Toronto. The gold prospector represents an annual production of over 7 million ounces, placing it at the top of global gold mining companies along with Newmont Mining. The Company was founded in 1978 by Peter Munk as Barrick Petroleum and went public as Barrick Gold in 1983. In addition to gold, the Company also mines silver and copper.
The Company's strategy fits perfectly into the current environment. Due to its extensive metal resources, the Company is at the forefront of the battle for coveted raw materials. Barrick had generated a significant positive cash flow in the last 3 years, so they reached the zero line in net debt at the end of 2020. There is over USD 2 billion in cash in the coffers, and there is an opportunity to become more expansive again, especially since interesting junior projects have just become cheap again.
Barrick Gold is ready to move forward with its mine closure project for the Golden Sunlight property in Jefferson County after a meeting between CEO Mark Bristow and Montana Governor Greg Gianforte. Barrick says the project involves reprocessing tailings to remove sulfur or iron pyrite. Nevada Gold Mines is interested in the reprocessing and would provide the downstream processing. Closures are also part of a serious mining business. The Barrick share price is barely moving at the moment, but it is fundamentally worth doing some quiet re-buying.
Triumph Gold - Best prospects in the Yukon District
Canadian exploration Company Triumph Gold owns properties in the Yukon. The Yukon is historically known for the legendary "Klondike Gold Rush." In 1896, this brought more than 100,000 prospectors known as "stampeders" to the Klondike River near Dawson. Its aftermath led to the establishment of the Yukon Territory and the final demarcation of the border between Alaska and Canada. It coincided with a severe economic crisis in the US, so many people sought their fortunes on the Klondike, but few became rich with true "bonanza" finds.
Triumph Gold owns a land package in the highly mineralized Dawson Copper-Gold Belt. Its flagship Freegold mining project has excellent infrastructure, a power grid and good road access. It is located near various world-class projects. Its well-known properties include Freegold Mountain, with the Tinta Hill, Goldstar, Golden Revenue, Tad/Toro, Nit and Severance zones.
Triumph aims to become a mid-tier producer in the medium term, meaning that the amount of gold mined should be between 500,000 and 1,500,000 ounces. Resource expansion is still necessary for this project, and one or two acquisitions are also likely to present themselves. With CAD 6 million in cash, the drilling projects are secured well into 2021. Further steps will also be covered with strategic partnerships.
Triumph Gold has a market capitalization of CAD 23.3 million. However, as the gold price slowly gains momentum, we expect short-term gains. The story is fascinating in the long term.
Gazprom - The gas giant remains sponsor in Gelsenkirchen
The most important news first: Gazprom will remain the main sponsor of the soccer club FC Schalke 04. According to the Company's management, the Bundesliga last-place team FC Schalke, which is struggling both athletically and financially, will continue to be supported by main sponsor Gazprom in the 2nd league. The commitment is valid for at least another 3 years. According to the club, the main sponsor has the right to terminate the cooperation in the event of relegation. According to unconfirmed media reports, Gazprom has recently transferred around EUR 20 million per year. However, the club has debts of more than EUR 200 million.
At the sponsor, on the other hand, things are going much better. According to preliminary data, last year, the Company conducted extensive 3D seismic surveys over an area of more than 5,000 square kilometers and drilled over 57,000 meters into various rock formations, including technically challenging wells up to 4,500 meters deep. That resulted in a reserve addition of more than 480 billion cubic meters, which is significantly higher than the current production rate of 453 billion cubic meters.
Most of the Company's geological exploration took place near the Yamal Peninsula, in eastern Russia, and on the continental shelf. Due to the lower gas price in 2021, sales will be about 6% lower in the current year, but the Company produces free cash flow of over EUR 5 billion per year. Gazprom shares are one of the cheapest energy stocks on the price list, with a P/E ratio of about 4. For a long-term buy signal, the EUR 5.5-6.2 zone would need to be overcome. The stock is currently trading at EUR 4.89.