February 17th, 2021 | 10:45 CET
Barrick Gold, Triumph Gold, Yamana Gold - All good things come in threes - and gold!
Since the summer of 2020, the majority of gold stocks have been correcting. The precious metal price reached a peak value of USD 2,074 at that time but then switched into reverse gear - apart from a brief upward movement at the beginning of the year - and is currently quoted around the USD 1,800 mark. For anti-cyclical and long-term investors, but also for short-term traders, the current situation offers exciting opportunities. The broad-based bull market on the stock markets and in the area of cryptocurrencies is brimming with optimism. Despite a - and also shared by us - positive assessment of the capital market environment, corrections will continue to occur in the future. The trigger, duration and massiveness are written in the stars. However, one rule of thumb has almost always proven itself: in phases of fear and uncertainty, gold gains value as a crisis currency. With good quality gold stocks, investors are then on the winning side. Where is it worth investing now?
time to read: 2 minutes
|
Author:
Carsten Mainitz
ISIN:
CA8968121043 , CA0679011084 , CA98462Y1007
Table of contents:
"[...] Our SMSZ project is the largest contiguous land package of any exploration company in the region at 400km2 and overlays a 38km portion of the prolific Senegal Mali Shear Zone. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
Tag cloud
Shares cloud
BARRICK GOLD CORPORATION - Q4 figures to be published on February 18
In mid-January, Barrick Gold had already published production data for the final quarter and achieved the advised target range in gold and copper production. But the output of 4.8 million ounces of gold and 457 million pounds of copper still says nothing about profitability. The Company will complete the picture tomorrow with the complete data for Q4 and the past fiscal year.
The Company's announcements in recent weeks are positive, as the group reported several projects and holdings that posted better-than-expected numbers for the past year, as well as a continuation of positive trends.
Barrick Gold is the world's second-largest gold producer and owns many of the world's most productive gold properties. Thus, investors benefit from rising quotations of the precious metal. Additionally beneficial is the group's involvement in several copper projects. The industrial metal has performed very well in recent months. Market experts expect the price increase to continue in the wake of rising demand from the electromobility sector. Barrick shares have fallen by around a third since the summer of 2020. In our opinion, this is a good level for (new) engagements.
TRIUMPH GOLD CORP - Acquisition of acreage near the Freegold Mountain project
Canadian exploration Company Triumph Gold is focused on developing the Freegold Mountain gold-copper project in the Yukon Territory, a very mining-friendly jurisdiction in northwestern Canada.
Earlier this month, the Company announced it was acquiring 258 claims adjacent to the zones of the 200 sq km Freegold Mountain project in an attractive transaction. Not only does this increase Triumph's footprint in the region, but it also brings a new high-profile major shareholder to the table, namely, Teck Resources. The multi-billion-dollar corporation is Canada's largest diversified resource Company. Teck invests, in particular, in the copper, steel, coal and zinc sectors. Teck will receive 1.25 million Triumph shares as part of the transaction. With an eye on potential production in the future, the giant has secured a 1.5% net smelter return on copper production from the divested Big Creek project. This deal is a win-win for both buyer and seller, in our opinion.
To date, the market has not adequately priced in Triumph Gold's potential. The stock market value of CAD 25 million in no way reflects the project's opportunities, with a now even larger area.
YAMANA GOLD INC - Analysts see more than 50% price potential
Yamana is a mid-tier producer of gold, copper and silver. Last week, the Canadians published excellent Q4 figures. However, these were largely ignored by the market in the wake of the falling gold price. Yet an increase in profits from CAD 14.6 million to CAD 103 million is no mean feat. Also, Yamana increased its quarterly dividend by 50%.
In the past, Yamana has not only grown organically but also through a series of transactions. Currently, the Company's market capitalization is CAD 5.7 billion. Since the high last summer, the share price has lost about a third and is now at about CAD 6.
The majority of analysts following the Company see the stock as undervalued and recommend the shares as a buy with an average price target of CAD 9.15. This number corresponds to a price change of more than CAD 6 billion, which corresponds to a price opportunity of over 50%.
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.
