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September 22nd, 2021 | 13:59 CEST

Barsele Minerals, Mutares, SoftBank - Spoilt for choice

  • Gold
Photo credits: pixabay.com

Sooner or later, value-creating transactions are reflected in the share price of a respective company. For companies like Mutares or SoftBank, buying and selling company shares is a core business. The share of the Canadian explorer Barsele Minerals offers a unique situation with the possibility to take over the promising Barsele gold project in northern Sweden completely. We reveal where a closer look is worthwhile.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: BARSELE MINERALS | CA0688921083 , MUTARES KGAA NA O.N. | DE000A2NB650 , SOFTBANK GROUP CORP. | JP3436100006

Table of contents:


    BARSELE MINERALS CORP - Is the game changer coming?

    The Canadians own 45% of the high-potential Barsele gold project in northern Sweden. Joint venture partner Agnico Eagle Mines holds the remaining shares and will take over the exploration and development of the property. In May, both parties agreed on a letter of intent under which Barsele Minerals can acquire Agnico's shares. Now the deadline to complete the deal has been extended again and set for October 31.

    The transaction would be a game-changer for the Company and its stock. The Barsele project is located in the mining region of Västerbottens Län in northern Sweden, 600 km north of Stockholm, and covers 33,500 hectares. It is located at the western end of the Proterozoic "Skellefte Trend", which intersects with the "Gold Line" in northern Sweden. The main gold-bearing system remains open in all directions. According to the 2019 NI 43-101 compliant resource estimate, the project has approximately 2.4 million ounces of gold. Management sees the potential to increase the resource to 3.5 million ounces of gold over the medium term.

    The proposed transaction includes a cash payment of USD 45 million, but Barsele may also partially pay in shares and warrants. The Canadians plan to carry out a capital increase and debt financing to stem the purchase price. Upon completion of the capital measure, Agnico would then hold around 15% of the shares.

    At the moment, the share is in waiting mode. If the transaction is successfully completed by the end of October, the Canadians will be playing in a different league. Currently, the Company is valued at only CAD 71 million. Of course, there will be a significant dilution due to the capital increase that will then be necessary. However, this will be offset by a company valuation that should be significantly higher and advantageous for shareholders given the gold resource.

    MUTARES SE & CO KGAA - Medium-term targets significantly increased

    The Company's business is buying, developing and selling companies. Recently, Mutares gave a detailed insight into its ambitious growth plans during a capital markets day. At the beginning of September, Mutares raised its guidance for 2023 with the tailwind of record revenues in the first half of the year. The bar is now set at consolidated revenues of at least EUR 5 billion, which is an increase of more than 50% compared to the previous group guidance.

    The significant sales growth is mainly based on the high transaction activity with seven completed acquisitions in the first half of the year. Group sales in the first six months increased from EUR 620.5 million to EUR 1,093.9 million. Net income improved to EUR 19.9 million, mainly due to the sale of the shares in STS Group AG, after a loss of EUR 4.8 million had previously been posted. The Management Board further informed about plans, according to which a rights issue and an uplisting to the Prime Standard are currently being discussed. Analysts believe that the share has an average upside potential of 16%.

    SOFTBANK GROUP CORP - Large NAV discount

    The group's stock has a broad portfolio of listed companies from, among others, the technology, telecommunications and Internet sectors. The largest position is the Chinese group Alibaba. Recently, these and other positions from the Middle Kingdom have come under considerable pressure. Artificial intelligence is a central field of investment for the Japanese, which is made primarily through their own Vision Fund. Due to China's state intervention in various business fields of Chinese companies, SoftBank announced to stop such investments in the People's Republic for the time being. Recently, SoftBank announced the launch of another Latin America Fund with a target volume of USD 3 billion. The shares were quoted well below net asset value. Analysts formulate an average price potential of almost 60%.


    All three companies presented have potential. Whether it is investment companies like Mutares or SoftBank or the unique situation at Barsele Minerals is a matter of taste. We find the investment story of the Canadians the most exciting. If Barsele succeeds in taking over the shares in the Swedish gold project, the stock should move significantly upwards in the medium term.


    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

    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.

    About the author



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