09. October 2020 | 12:37 CET
BioNTech, Barrick Gold, Velocity Minerals - Golden Times!
No! The end of the gold price increase has yet to be reached. The problems, which have become even more acute in recent months due to the pandemic, will not disappear overnight. It is understandable that the price of the precious metal will briefly collapse because "Big Donald" is saluting himself, or the helicopter pilot who brought him safely back to the White House after his short, three-day intermezzo in the military hospital. He wants to show that he has quickly left Corona behind him. However, among his many headwinds, the President now faces the US election, the still high number of Covid-19 cases in the US, the rapidly increasing national debt, and the unchecked money printing of the central banks. At least in terms of case numbers, there is positive news from BioNTech. The Corona vaccine candidate, developed by the Mainz-based company, is entering the approval phase.
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ISIN: CA92258F3007 , US09075V1026 , CA0679011084
Gold and gold mines remain attractive
As a result of the course correction, in addition to the well-known big players from North America such as Newmont, Barrick Gold, or Yamana Gold, smaller companies from the second and third rows are also becoming more attractive again. The chance of a further increase in the price of gold is one thing. An imminent consolidation of the gold market through takeovers could provide for fantasy and thus rising prices.
Bulgaria - the land of golden opportunities
The celebration capital "Goldstrand", the ballerina of the Balkans, is likely the first answer you get when you ask about the 7 million inhabitant state at the Black Sea. Besides hard liquor and wild parties, Bulgaria offers much more. As the name "Goldstrand" suggests, Bulgaria is the country with the largest gold deposits in Europe.
Geologists at the Bulgarian Academy of Sciences have calculated that EUR 150 billion are supposed to lie dormant in Bulgaria's soil. According to the experts, there are 60 gold deposits and deposits of more than 13,000 tons in the Balkan state. In terms of gold production, Bulgaria ranks third behind the Scandinavians, Sweden and Finland.
Big players are settling
Due to the rising gold price, large players, chiefly North American players in the gold sector, are increasingly looking for promising alternatives outside their comfort zone. Since 1999 the Canadian billion-dollar company, Dundee Precious Metals, has been operating the "Chelopech Mine", one of the largest gold mines in the world in the west of Bulgaria. The reserves are estimated to be more than 42.7 million ounces of gold. According to the company, the concession for the mine has a 30-year term.
Great potential for up-and-coming explorers
Just under 50 km from the "Chelopech Mine" in Kazak, there is further potential in the ground. Velocity Minerals Ltd., a gold exploration and development company, founded in Vancouver, Canada, in 2000, intends to exploit this potential. The company, listed on the stock exchange for almost CAD 50 million, is increasing its focus on the emerging south-east of Bulgaria.
The company's strategy is to develop a low-cost operation in which multiple projects deliver gold concentrates to an existing central processing facility. Velocity holds a 70% interest in the Tintyava Prospecting License, which includes the most significant Rozino Project to date. It has entered into option agreements to acquire a 70% interest in the Obichnik, Makedontsi, and Sedefche gold projects with Gorubso, an established and respected company.
Study shows the tremendous scope
The news flow of the past weeks has been extremely positive. Drilling at the Kazak Zone has returned near-surface and high-grade gold grades. Kazak is situated approximately 2 km south of the Rozino Gold Project. A feasibility study for the Rozino Project was published in August. This study demonstrates the potential of the project with a net present value of CAD 163 million. Two factors illustrate the significant leverage: Firstly, the analysis assumes a gold price of USD 1,500, which is well below the current level. Secondly, new exploration zones, such as "Kazak" are not included in the calculation.