February 9th, 2022 | 12:20 CET
BioNTech, Barsele Minerals, Pfizer - Markets facing a turnaround
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"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Barsele Minerals with high-grade discoveries
The low interest rate environment, rising inflation, demand as a crisis currency due to a possible conflict in Ukraine, a strong US dollar, and physical demand for gold for jewelry making or as an industrial metal all point to higher price levels for the precious metal in the medium term. A prime opportunity exists in the exploration company Barsele Minerals, which operates the Barsele project in northern Sweden together with Agnico Eagle.
With a 55% stake, Agnico Eagle owns the majority, while Barsele holds 45%. For Barsele, this is a comfortable and low-risk position, as Agnico Eagle bears the costs as operator. The Barsele project is located in the mining region of Västerbottens Län in northern Sweden, 600km north of Stockholm, and covers 34,500 hectares in the Fennoscandian Shield. In recent years, Agnico Eagle, as the operator, has advanced exploration and drilled some 155,000 meters. A total of 404 drill holes were completed. In 2019, Barsele released a resource estimate of 2.41 million ounces of gold. The next target is to achieve a resource estimate of 3.5 million ounces through a further 30,000m drill program.
Recently, regional exploration work found a high-grade boulder grading 90.8 g/t Au 150 meters up-ice, to the northwest, along a known boulder trail discovered in 2016. It is believed to be similar to other boulders found in the area.
Gary Cope, President of Barsele, states, "This exciting new high-grade boulder discovery could indicate a new source of gold mineralization at Barsele or a southerly fault-related displacement of the Skiråsen Zone. More prospecting, sampling, geophysics and drilling is required in 2022."
In addition, the first tranche of a CAD 2 million private placement announced on January 6, 2022, was completed. Under the first tranche, the Company issued 825,000 units for CAD 0.50 each, raising total gross proceeds of CAD 412,500.
Big brother weakens
The euphoria surrounding shares of vaccine manufacturers has been negative for weeks, with companies shedding their overvaluations at a furious pace. BioNTech was still at a high of USD 373.97 at the end of December; the current price is USD 163.00. However, the market capitalization still amounts to USD 41 billion. Considering that the possible end of the pandemic is also likely to reduce the willingness to vaccinate, a further slide of the German flagship company might not be unlikely. Today, the Mainz-based Company received headwind from its big brother Pfizer, which reported figures for the past fourth quarter.
The US company failed to meet analysts' sales forecasts. Sales rose from USD 11.7 billion to USD 22.8 billion. However, analysts had bet in advance on USD 24.2 billion. Full-year 2021 revenue is USD 81.3 billion, up about 95% from the same period last year. However, management sees a slowdown in the vaccines business.
"Compared to where we were in 2021 when the vaccine was new to the market, and few people had received a dose of the vaccine, there is less upside potential for this guidance during the year," Chief Financial Officer Frank D'Amelio said in a prepared statement.
The stock started the day down nearly 4% on Wall Street. Pfizer's chart picture has also deteriorated significantly. Due to the high volatility, a slide to initially USD 48.00 would be quite possible.
The chart pictures of the vaccine manufacturers have clouded for weeks and could reduce the still high valuations. Pfizer disappointed analysts on sales. BioNTech lost value as a result of Pfizer's weaker-than-expected numbers. In contrast, Barsele Minerals reported high-grade discoveries.
Conflict of interest
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