July 21st, 2021 | 13:54 CEST
Barrick Gold, White Metal Resources, Yamana - Soon, things are going to happen here!
When the markets shake out, it can not hurt to have a little gold in the portfolio. Whether physically or in the form of shares is a matter of taste. If you are more speculative, you should look for young exploration companies. The big picture speaks in favor of rising prices for the precious metal in the medium term. We show you three stocks that can help you profit from a rising gold price. Who is winning the race?
time to read: 3 minutes
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Author:
Carsten Mainitz
ISIN:
BARRICK GOLD CORP. | CA0679011084 , WHITE METAL RES | CA9640461062 , YAMANA GOLD INC. | CA98462Y1007
Table of contents:
"[...] 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
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.
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BARRICK GOLD CORPORATION - Golden times again soon
Barrick Gold recently resumed operations at its Hemlo gold mine in Ontario, Canada, after a multi-day suspension that followed the death of a contract worker at the site. The underground mine will gradually return to full production soon. Barrick is in the process of extending the life of the Hemlo mine and transforming it into a modernized underground-only operation. The group is also exploring near Hemlo through an earn-in agreement with MetalCorp. Hemlo, about 350 km east of Thunder Bay, produced 223,000 ounces of gold last year.
Shares in the world's second-largest gold producer are currently trading around the CAD 26 mark. That gives the Canadians a stock market value of CAD 47 billion. According to analyst consensus, the upside potential of the shares is currently calculated at around 40%. The group owns many of the world's most productive gold areas and also several copper projects. The Company aims to achieve a production volume of 4.4 to 4.7 million ounces of gold and a copper output of 410 to 460 million pounds in the current fiscal year. Barrick operates in 13 countries worldwide, particularly in North and South America and Africa.
WHITE METAL RESOURCES CORP - Drilling program underway
White Metal Resources is a Canadian junior exploration company. The Company's two main concession areas are the flagship Tower Stock gold project in Thunder Bay, Ontario, Canada, and the Okohongo copper-silver project in Namibia. The summer drilling program at Tower Stock commenced in early July. The diamond drilling program is expected to take between four and five weeks and will total 3,000 meters of drilling. The concession area is located approximately 40 km west-northwest of the port city of Thunder Bay, Ontario, and covers a footprint of roughly 1,968 hectares.
The drill program will also focus on undiscovered areas of the Bench Zone where drilling is spaced 75 to 100 meters apart in places, and as a result, a significant amount of detailed drilling will be required. Another important aspect of the drill program will be determining if the new and previously untested U-V Zone, Ellen Zone and Bench Zone are connected to the D Zone to the south. That would extend the gold zone to a total strike length of 1.5 km.
Similarly, the Company recently provided an update on another portfolio asset: the DorWit copper-silver project, which Australian joint venture partner Noronex Limited is advancing. Noronex has defined several targets; thus, the drilling program can start soon. The Namibian project comprises three exclusive prospecting rights covering 78,000 hectares. With a market capitalization of CAD 10 million, White Metal Resources is still a tiny stock market player. With good news, however, that may change very soon.
YAMANA GOLD INC - Presence in Quebec is being expanded
Yamana Gold is a Canadian-based precious metals producer with gold and silver production, development stage properties, exploration properties and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. The Company's portfolio includes five operating gold mines. Recently, the Company provided information on its plan to move forward with the development of the Wasamac mine in Quebec, spending USD 416 million on underground operations. The mine is seen as key to expanding Yamana's presence in the Abitibi-Temiscamingue region. Production is estimated to increase by 200,000 oz/year in the first four years after ramp-up. First gold production is planned for late 2026, and commercial production is scheduled for Q4 2027. The stock is currently oversold, in our opinion and is also trading well below book value. On average, analysts see 51% upside potential for the share.
As a crisis currency in uncertain stock market times, you should put part of your portfolio in precious metals. Whether physically or in the form of shares - that is entirely up to the individual. Even on the side of gold stocks, there are big differences: from large (Barrick) to medium (Yamana) to very small (White Metal Resources). Those with an affinity for risk should take a closer look at White Metal, as this is where the most significant value enhancement leverage lies.
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