15. January 2020 | 15:05 CET
Barrick Gold, Triumph Gold, Yamana Gold - Precious metals for the portfolio
For investors in the gold sector 2019 was a year of liberation from a year-long sideways trend. During this period, the troy ounce of gold was traded in the range of approximately USD 1,257.00 to USD 1,557.00. In the time window from May to September, the price rose by around USD 300.00, thus causing a great deal of euphoria among investors. In addition to the physical precious metal, investors also have the opportunity to participate in the value chain from the extraction of the precious metal.
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ISIN: CA8968121043 , CA0679011084 , CA98462Y1007
"[...] 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
Heavyweight gold producer
The gold producer Barrick Gold is one of the largest market participants in this segment with a current price of EUR 15.79 and a market capitalization of over EUR 28 billion. Last year, the company's shares were traded between lows and highs of less than EUR 11.00 and more than EUR 18.00. Investors who had Barrick in their portfolios were able to experience volatility, but in regards to that this stock certainly has the charm of a fully comprehensive insurance policy for the financial system, diversification often outweighs as a motivation against price fluctuations.
Potential in the Yukon
The shares of the exploration company Triumph Gold was also subject to intensive price fluctuations last year. With a price of EUR 0.185 per share and a current market value of less than EUR 16 million, the company is one of the lightweights on the market. Triumph Gold is active in the Canadian Yukon and explores the company's own properties there. One of Triumph Gold's largest shareholders is Newmont with a stake of around 18%. The shares of Triumph Gold changed hands in 2019 between below EUR 0.15 and above EUR 0.35. It will probably only be a matter of time before the share wakes up from its slumber.
Gold price indicates where the price is heading
Yamana Gold is a precious metals producer with properties in North and South America. The company's shares changed hands last year at less than EUR 1.65 in the low and more than EUR 3.50 in the high. Currently, Yamana Gold has a market capitalization of EUR 3.1 billion at a price of EUR 3.38 and is thus in the midfield of the companies mentioned above.
The further development of the gold price will usually influence the interest of investors - the higher the price of the troy ounce, the higher the margin. In the case of Triumph Gold, it can be assumed that the management is seeking a takeover by a major gold producer. It stands to reason that Newmont is also on the list of candidates as a major shareholder.