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17. November 2021 | 13:11 CET

Barrick Gold, Triumph Gold, Newmont: Here is what matters for Barrick and Co.

  • PreciousMetals
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The gold price has recovered in recent weeks. The increasingly strong inflationary pressure and the growing nervousness of professional market participants, such as banks, which see increasing pressure on monetary guardians to act in the fight against inflation, may have attracted some investors' attention to the precious metal again. But how can investors invest? Physical holdings involve incidental purchase costs and require a safe deposit box - bank safe deposit boxes are already in short supply at present. Financial products, such as ETCs, are more paper than precious metal and are certainly not suitable for crisis protection in the worst case. That leaves equities. We present three stocks.

time to read: 3 minutes by Nico Popp
ISIN: BARRICK GOLD CORP. | CA0679011084 , TRIUMPH GOLD CORP. | CA8968121043 , NEWMONT CORP. DL 1_60 | US6516391066



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

Barrick Gold: What makes a share sexy?

Barrick Gold's stock is the first choice for many investors when it comes to gold investments. But the stock has disappointed many, especially in recent months. Upwardly hesitant, downwardly full on - this is how the shares of Barrick Gold can be described from the perspective of a disappointed investor. But is the paper really so hopeless? A recent report takes a detailed look at Barrick Gold's stock. The conclusion reads consistently positive: Barrick benefits from rising gold prices and higher production volumes. Furthermore, the value has run less strongly relative to the benchmark index NYSE Arca Gold BUGS. In comparison with the largest gold producer globally, Newmont, the market observers note a significantly weaker performance. That could indicate some catch-up potential. But is that enough for price gains?

The crux of supposedly cheap stocks is that these relative undervaluations on the market do not come about for no reason. While Barrick Gold shines with an expected payout yield of 4%, the Company has not come up with much else to provide growth in recent years besides dividends. For Barrick to reduce its relative undervaluation, it will be important in the medium term for the Company to deliver catalysts that trigger share price increases. This new fantasy could come in the form of acquisitions. Barrick Gold has the necessary high cash flow. Now it is just a matter of finally getting the horsepower on the acquisition road.

Triumph Gold: Step by step to success

Although equipped with significantly fewer opportunities, the small Canadian gold company Triumph Gold has already implemented an acquisition in February and acquired another gold-copper concession area, Big Creek, from commodity producer Teck Resources. An interesting detail is that Teck paid itself in shares of Triumph Gold in addition to a net smelter return (NSR). Even before that, Newmont, among others, was one of the shareholders in Triumph Gold and still holds a 12.8% stake in the Company.

Newmont is a neighbor of Triumph Gold and even uses a road that runs through Triumph Gold's Freegold Mountain project. The Company already has the drill program planned for 2022. It is focusing its exploration efforts on sustainability and a diverse team that draws from various disciplines and represents the local community. With a market capitalization of around EUR 20 million, the stock is a flawless small cap that can benefit disproportionately if gold prices rise.

Newmont: ESG offensive leaves investors cold

Barrick Gold is not the only example of how difficult it is for large companies to achieve growth that also convinces the capital market. Newmont's performance in recent months has also been less than convincing. Although Newmont came through 2021 better than Barrick, it also lacks the necessary momentum. Most recently, Newmont announced with construction equipment manufacturer Caterpillar that it plans to invest USD 100 million in a joint venture to develop electric-powered and autonomous driving vehicles for mines. This news actually sounds like the future of mining and should open up new investor groups for Newmont. The reality, however, looks different: Over a period of three months, the share has only posted a meager return of just under 4%.

Those who want to invest in precious metals through shares will find Barrick and Newmont as titles of rank and name, but the great performance failed to materialize recently. Although these stocks are also likely to pick up in a new gold hype, investors should not forget the small caps, which are advancing promising projects step by step away from the big spotlight. The combination of gold and copper could also argue for experienced investors to take a closer look at Triumph Gold's stock. Only Newmont offers this kind of copper exposure. Unfortunately, the coveted industrial metal plays only a subordinate role at Barrick.


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

Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.

Related comments:

08. November 2021 | 13:05 CET | by Carsten Mainitz

Triumph Gold, Barrick Gold, Rheinmetall - Precious metal stocks jump!

  • PreciousMetals

Despite persistently high inflation, the US Federal Reserve is still far from thinking about interest rate hikes. At least in the stimulus bond purchases, however, the central bankers will step on the brakes a little and, as of November, reduce the volume of currently USD 120 billion monthly by USD 10 billion each. The program will then end completely in the fall of 2022. In the wake of this decision, prices for precious metals rose. Gold rose above the important resistance of USD 1,800.


02. November 2021 | 12:59 CET | by André Will-Laudien

Newmont, Tembo Gold, First Majestic - The inflation bubble is filling up!

  • PreciousMetals

With the current climate debate and the parallel GreenTech hype, the development of precious metals is being ignored and left aside. Investment flows are going into the strong momentum stocks from the tech sectors, and gold and silver keep ending up on the sell lists after minor recovery attempts. The Federal Reserve is worried about dealing with the latest inflation data; after all, the economy is still laboring from broken supply chains and blocked sea routes. There will not be much growth in 2021 either, which does not seem to bother the stock markets. After all, shareholders like to hear the magic word "inflation," as it promises higher nominal profits and historically high asset prices. But the topic of gold and silver will come, so today, we look at interesting mining stocks.


01. November 2021 | 12:50 CET | by André Will-Laudien

Barrick Gold, Central African Gold, Gazprom - Gold becomes a fireball!

  • PreciousMetals

The development of gold follows the inflation trend in our economies in the last 25 years. Before the turn of the millennium, the ounce was still below USD 200. Due to the real estate bubble after the dot-com boom and the devastating effects of the US subprime crisis, the precious metal reached its temporary peak in 2011 at USD 1,950. At that time, the ECB tried to prevent the collapse of Greece with emergency loans. With the deployment of EUR 336 billion, this European rescue experiment succeeded for the time being, but the gold price then lost value again in the following years until 2015, down to USD 1,120. Last year, there was then a new attempt in the direction of north. In May, the precious metal reached USD 2,050 - a plus of USD 600 since the Corona Crisis. Where does the metal go from here?