06. September 2021 | 14:25 CET
BASF, Desert Gold, Moderna, BioNTech - Keep going, keep going!
The Delta variant is teaching the markets to be afraid. After the economy was humming in the past two quarters, disillusionment is now slowly setting in. The unexpectedly weak labor market data in the US in August demonstrated this. Outside of agriculture, only 235,000 new jobs were created compared with the forecast of 728,000 new jobs. Thus, the market's fear of an end to loose monetary policy and possible interest rate hikes should also be off the table.
time to read:
ISIN: BASF SE NA O.N. | DE000BASF111 , DESERT GOLD VENTURES | CA25039N4084 , MODERNA INC. DL-_0001 | US60770K1079 , BIONTECH SE SPON. ADRS 1 | US09075V1026
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Desert Gold - Significant expansion
Inflation fears combined with historically low-interest rates are pure gold for the development of precious metals. Thus, even after the jobs data release, the gold price shot back above the important mark of USD 1,810 per ounce and is now at an important resistance area at USD 1,833.94. A breakthrough generated further potential to the next hurdle at USD 1917. Apart from the chart-technical picture, one cannot avoid investing in gold or gold mining shares for portfolio hedging due to the current framework conditions.
The shares of Desert Gold's gold mining exploration company have corrected well, although the fundamentals of recent weeks have been highly positive. The Company focuses on deposits in the African nation of Mali, with the main SMSZ project located in the eponymous Senegal Mali Shear Zone and the largest contiguous non-producing concession block at 440 sq km. SMSZ is strike-linked to five major mines north and south, including B2 Gold's Fekola mine, Barrick's Gounkoto and Loulo mines, and Allied Gold's Sadiola and Yatela mines.
Earlier this month, another acquisition was announced with the 30.6 sq km Kolomba concession associated with the Company's SMSZ project. The deposit is characterized by two gold zones that are open at depth and along strike. Both zones have the potential to add additional mineral resources to the SMSZ project in the near future. At Kolomba, gold was last prospected in 2003 at a gold price of USD 363 per ounce by Hyundai, who drilled a total of nearly 31 kilometers with 407 holes.
Overall, the long-term goal of management led by CEO Jared Scharf is to discover a Tier 1 gold deposit associated with the regional gold-bearing structural zones that run through the SMSZ project. If results are positive, neighbors already located in the region are likely to take notice. Based on this, a major takeover is possible at any time.
Moderna - The third vaccination
While in Germany currently, only just over 60% of the population is fully vaccinated, and vaccination fatigue is increasing, vaccine manufacturers such as Moderna and BioNTech are already working on approving their booster vaccines. Moderna submitted an application to the EMA for approval of a third Corona vaccine. Unlike the first and second vaccines, the third booster vaccine is to be half the dose.
In America, the application has already been submitted to the FDA. BioNTech has also applied for approval of the third vaccination in the USA. The FDA plans to decide on the booster vaccination with Comirnaty on September 17. Even though the stock market values of the vaccine manufacturers are off the charts, momentum is playing on their side. BioNTech could turn up again after successfully testing the USD 325 mark. However, due to the volatility, do not forget to set stop prices.
BASF - With a tailwind
In June, the agreement to acquire 49.5% of the Hollandse Kust Zuid offshore wind farm from Vattenfall was concluded. Following approval by all relevant authorities, the transaction, which was scheduled for the fourth quarter, was completed earlier than expected. According to the agreement signed by BASF and Vattenfall, the purchase price amounts to EUR 0.3 billion. In addition, the DAX-listed Company is investing a further EUR 1.6 billion to build the wind farm. Since July, work has been underway, and full operation is expected in 2023, making the project the world's largest offshore wind farm with 1.5 gigawatts.
The Delta variant is getting in the way of the recovering economy. Due to the disappointing economic data, the central bank will likely stick to its ultra-loose monetary policy, fueling stocks and precious metals. Desert Gold's stock is promising at current levels due to recent acquisitions. BASF, BioNTech and Moderna should be watched; specifically, the high valuation levels of the vaccine manufacturers should not be neglected.