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June 18th, 2021 | 11:34 CEST

Bayer, White Metal Resources, Barrick Gold - Trendsetting news

  • Gold
Photo credits: pixabay.com

At Federal Reserve's meeting, runaway inflation was the topic par excellence. With US consumer prices up 5% in May, market participants assumed at least an announcement of a pullback in bond market volume. However, an interest rate hike, which would actually be necessary for price stability, is not considered before 2023, according to FED Chairman Jerome Powell. Thus, through the continued ultra-loose monetary policy, he refers to the attitude that economic growth and a rising stock market are more important than low inflation.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: DE000BAY0017 , CA9640461062 , CA0679011084

Table of contents:


    Barrick Gold - Weak in the train of the overall market

    One would have expected rising stock markets following the meeting after the way was paved for further growth. Nevertheless, the Dow Jones sank by more than 200 points in the course of trading. The reason given for this was that 7 of a total of 12 members of the FOMC now expect a first interest rate hike as early as 2022. At the last meeting in March, there were only 4 participants.

    The biggest loser of the monetary policy decisions was the gold price. Although there will be no change in the framework conditions on the interest rate front or in bond purchases soon, the precious yellow metal rushed down by more than 5% at the peak and tore several prominent support areas in the process. Currently, the gold price is quoted at USD 1,778. The next support is at USD 1,732, and if it falls below, the double bottom at USD 1,680 could be tested again.

    A bullish sign would only be a return above the 1,862 mark. The share of the largest gold producer, Barrick Gold, has been tending towards weakness for days. After the break of the upward trend formed since March at USD 23.50 last Friday, the next support zone is around USD 21.50. If that is broken due to the weak gold market, the April low at USD 19.44 is the next target.

    White Metal Resources - Pleasing development

    In contrast, the share of the project generator of White Metal Resources shows stability. The business model of the Canadians consists of searching for exploration objects and developing them further in cooperation with a suitable joint venture partner. In Ontario, the Company already owns 4 project options. However, the focus here is clearly on the Tower Stock Gold project. Here the Company has an opportunity to acquire 100%.

    The concession area, where hardly any exploration activities have been undertaken for more than eight years, is located about 40 km northwest of the port city of Thunder Bay and covers an area of approximately 1,968 hectares. The property's geology is similar to Alamos Gold's Young Davidson Mine, one of Canada's largest underground mines. In early June, it was announced that White Metal Resources is planning a 3,000 m drill program at the Tower Stock project. The diamond drilling program is expected to start in the first week of July and last at least four weeks. Drilling will initially focus on the Ellen Zone to assess the possibility of extending the zone to the north and south.

    In addition to its focus on the Ontario area in Canada, the Company has a second flagship project, the Okohongo copper-silver project in Namibia. The geology is similar to the Central African Copperbelt (CAC) in Zambia. CAC contains an estimated 5 billion tons of copper at grades up to 4%. Here, the Company drilled 28 holes and has now released the results of the last 15 holes. Additional copper-silver deposits have been proven on the 19,850-hectare copper-silver property and are expected to add to the existing drill hole data.

    The busy management team plans to steadily expand the portfolio. The two main projects have significant potential. With a market capitalization of just EUR 4.4 million, the intrinsic value should already be significantly higher.

    Bayer - Horrendous news ignored

    Despite the catastrophic report of the partner CureVac, the price of the pharmaceutical giant Bayer shows strength and even trades at EUR 53.50, up almost 1%. After the vaccine manufacturer announced that its vaccine candidate CVnCoV had achieved only a preliminary efficacy of 47% against a corona disease "of any severity" in an interim analysis, the stock of the Tübingen-based Company sank by more than 50% at times.

    Now the pharmaceutical giant announced that it would continue its cooperation with CureVac despite the setback. The Leverkusen-based Company will support the start-up with services in areas such as development and logistics. According to the original plan, the vaccine will be produced in Wuppertal from December.


    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



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