September 22nd, 2021 | 13:59 CEST
Barsele Minerals, Mutares, SoftBank - Spoilt for choice
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:
"[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.
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
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.
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.
