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Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


29. April 2021 | 08:30 CET

Barrick Gold, Yamana Gold, Sierra Growth: Step by step to gold investment

  • Gold
Photo credits: pixabay.com

Gold is on the rise again. The precious metal has already recovered from its lows, and in the long term, it is still on an upward trend. Added to this are rising inflation rates. The peculiar thing about it is that half the world is still in lockdown. As soon as the floodgates are opened again for consumption, growth and inflation will increase even more. Given this outlook, companies in the gold sector are currently of interest - after all, their share prices have not yet risen and therefore have potential. We present three stocks.

time to read: 3 minutes by Nico Popp
ISIN: CA0679011084 , CA98462Y1007 , CA8263191055


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

 

Author

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: Where is the fantasy?

Barrick Gold is the very first choice for many investors when it comes to gold stocks. The gold giant lives almost exclusively from gold mining. Only some copper is still extracted from the ground by the Company as a byproduct. 2020 went very well for Barrick - profits were bubbling. But the free cash flows did not create a bit of fantasy but rather perplexity. Where to put the money, shareholders and management wondered. In the end, there was a special dividend, which briefly put the shareholders in a good mood but also revealed that the gold giant was not making progress operationally. Shareholders would have liked to see acquisitions. There was also talk of a reorientation towards a larger copper share.

But to date, nothing has happened in this direction. The share has lost almost 30% over the past year. Although one can assume that a comeback of the gold rally will also boost the share price again, Barrick will then sooner or later again face the problem of replacing reserves and at the same time creating a growth perspective. There are better alternatives in the gold sector.

Yamana Gold: Medium-sized producer with pitfalls

Yamana Gold's stock has held up much better over the past year, losing just over 10%. This relative strength could also be related to the fact that the Company, which focuses on copper and gold, recently acquired a stake in Ascot Resources. The Company is active in the Golden Triangle in the Canadian District of British Columbia and has developed projects. For Yamana, the investment offers the chance to renew reserves and to be able to accompany the development of an emerging mining district - it puts one foot in the door.

For investors, Yamana Gold is more promising, but the stock remains an alternative for savvy investors only. As a medium-sized producer with five active projects, Yamana is always subject to the risk of something going wrong: water ingress, landslides, or other problems can shut down a mine for a short time. The quarterly figures are then almost impossible to maintain. So how can private investors invest in gold companies in the first place?

Sierra Growth: Top or bottom with a favorable risk profile

Those familiar with geology and the economics of mining projects can detail companies like Yamana and form their own opinion. However, those who want to reduce complexity and prefer some warrant on a comeback in the gold price can take a closer look at smaller companies, such as Sierra Growth. Sierra Growth operates in Nevada and Peru and develops properties there. What makes them unique is that the projects are in the early stages and have only been explored superficially. Detailed work is expected to turn the properties into tangible exploration projects - the targets: Gold, silver, copper and molybdenum. Initial grab samples returned promising results at several locations, such as 26.6 g/t gold and 78.6 g/t silver, or 667 g/t silver and 0.41 g/t gold.

The next few months will show whether the early-stage projects deliver what they promise. What still sounds a bit vague from today's perspective takes on contours for speculative investors when looking at Sierra Growth's market capitalization: the Company is currently valued at just over EUR 8 million. Since Sierra Growth has several irons in the fire and an experienced team, speculative investors can take a closer look at the stock. Even if only one project offers potential for further exploration, the Company's low valuation can create excellent growth potential.

Opportunity and risk as two sides of the same coin

Investors have a free choice for investments in gold shares: Large producers profit from the gold price but offer little growth. Conversely, the pressure to replace reserves and create growth potential can even weigh on a stock's price, as in the case of Barrick Gold. Small companies like Sierra Growth act like a kind of warrant on commodity prices and exploration success. In the best case, rapid returns are possible. The earlier investors get on board, the lower the risk of a speculative investment story not delivering what it initially promised. What investors ultimately decide depends on their respective risk appetite.


Author

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.


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MAS Gold, K+S, Klöckner & Co. - For fans of real assets!

  • Gold

Inflation has certainly not yet reached its peak. The scenario of only a short phase of major losses in purchasing power - according to the position of the central banks - must be doubted anyway. Therefore, forward-looking investors should invest in tangible assets such as stocks, bonds or commodities. Anyone thinking of building up or expanding a commodities portfolio should take a closer look at the following stocks. Who is winning the race?

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Gazprom, Tembo Gold, Nvidia - Inflation and rare goods

  • Gold

Inflation has jumped not only in the USA but also in Germany. With an inflation rate of 4.5% in October, we now have the highest value in Germany in almost three decades. One driver of monetary devaluation is the cost of energy, which has become significantly more expensive, especially in the past year. While the oil price was still in negative territory at the beginning of the pandemic, it was recently quoted above USD 80. The chip shortage can be observed in the automotive industry, but graphics cards are also rare and are traded at a significant premium to the recommended retail price. Graphics cards are used for mining cryptocurrencies. It seems that bitcoin is increasingly becoming a value protection asset and competes with gold, the number one inflation protection.

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22. November 2021 | 12:50 CET | by Nico Popp

Amazon, Desert Gold, Deutsche Telekom: First movers are rewarded

  • Gold

Is it Christmas again? History is currently repeating itself: incidences are rising, Austria is going into lockdown, and German investors are gearing up for a form of contemplation that no one had expected after the vaccination successes in the summer. But life with a home office and delivery services also has advantages for passionate investors: There is plenty of time to take care of one's finances. Investors can profit since the market does not yet attach much importance to the dangers of inflation and the major central banks' ignorance of inflation. We present three stocks for long home office days.

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