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July 16th, 2021 | 11:31 CEST

Barrick Gold, Triumph Gold, Standard Lithium: Get in relaxed with stragglers

  • Gold
Photo credits: pixabay.com

Inflation is here - and it is not going away: Inflation rose by 5.4% in June within the USA compared to the same period last year. That is more than even pessimistic experts had expected in the run-up to the figures. Inflation is also picking up speed; compared with the previous month, inflation rose by 0.9%. The answer to this development may be gold. Shortly after the figures were published, the precious metal surged. We highlight two gold stocks and use the example of another currently very popular commodity stock to show why the time is favorable for gold now.

time to read: 2 minutes | Author: Nico Popp
ISIN: BARRICK GOLD CORP. | CA0679011084 , TRIUMPH GOLD CORP. | CA8968121043 , STANDARD LITHIUM LTD | CA8536061010

Table of contents:


    Justin Reid, President and CEO, Troilus Gold Corp.
    "[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

    Full interview

     

    Barrick Gold: When will the liberation strike follow?

    Those who want to invest in gold and shy away from bars or coins often bet on the shares of Barrick Gold. The second-largest gold producer in the world is considered a solid gold investment. The Company operates mines around the globe and produces some silver and copper in addition to gold. If you compare Barrick Gold's share price performance to the gold price, you get the impression that the stock always staggers a bit. Last year, shareholders were bothered by Barrick's failure to invest in growth. Instead, Barrick paid out a special dividend in the end, which investors happily pocketed, but which also acted a bit like an indictment. After all, big mining companies have to think about the growth of tomorrow.

    Still, nothing has happened at Barrick in terms of acquisitions on a larger scale. The share has even posted a loss on a one-year horizon. Such a development does not put us in a good mood. Although Barrick has made progress on costs in recent years, the stock lacks a liberating blow - It could be a spectacular takeover or a merger. The opportunity currently appears favorable: the pandemic is taking a break, and travel is possible again. At the same time, the gold sector is a bit out of focus - the premiums on potential takeover candidates are not likely to be that large.

    Triumph Gold: Low valuation + takeover fantasy

    One Company that would fit well in Barrick Gold's portfolio is Triumph Gold. Triumph Gold operates in the Yukon district of Canada and is developing a gold-copper project there. Last year, Barrick thought out loud about wanting to expand its stake in copper. Triumph stands for the Freegold Mountain project and has been working there since 2006. A resource estimate shows 2 million ounces of gold. Copper was also found in high grades. Triumph's immediate neighbor is Newmont, the world's largest gold producer. Since the group already holds 12.8% of Triumph, there is also a takeover fantasy in this direction.

    Triumph Gold recently expanded its property by acquiring an adjacent property. This year's exploration program has been underway since the end of June and may produce initial results in the coming weeks. The share has scored with some dynamic breakouts to the upside this year and appears solidly supported in the year's lows. Given a market capitalization of around EUR 15.5 million, the share is suitable as a speculative portfolio addition.

    Standard Lithium: The calm is deceptive

    Shares such as Standard Lithium are also suitable as speculative and future-oriented portfolio additions. For some time now, the share price has been rising steadily and attracting more and more investors. The Company is moving to a higher stock market segment in North America and wants to become a lithium supplier to the USA. Investors expect this to lead to a rapid increase in the share price and are betting on further price rises. As the Company is already ambitiously valued, although it is still far from production, investors should be cautious. The recent sideways trend is deceptive, the drop height correspondingly high.


    While Standard Lithium is currently the darling of investors and thus already valued accordingly, Triumph Gold is still trading near its previous lows. A look at the price trend of 2020 shows how dynamically stocks like Triumph Gold can rise as soon as the market turns accordingly. Speculative investors can take advantage of this. Barrick Gold is also likely to profit in such a case, but the share will not make giant leaps.


    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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    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



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