April 12th, 2022 | 20:31 CEST
BioNTech, Desert Gold Ventures, BYD - Decisive steps
There is currently great uncertainty on the capital markets. While the Ukraine war and the fear of interest rate hikes due to the enormous increase in inflation are weighing on the minds of investors in Europe, investors in Asia are pulling back due to the tightened Corona measures in China. The zero-covid policy could result in widespread mass shutdowns, negatively impacting industrial production and domestic consumption. Electric car maker NIO, for example, has already halted production.
time to read: 4 minutes
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Author:
Stefan Feulner
ISIN:
DESERT GOLD VENTURES | CA25039N4084 , BIONTECH SE SPON. ADRS 1 | US09075V1026 , BYD CO. LTD ADR/2 YC 1 | US05606L1008
Table of contents:
Author
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.
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Desert Gold Ventures - Profiteer of the next wave
In contrast to the broad stock market, the precious metal gold is benefiting from the uncertainties due to both the geopolitical upheavals and the high inflation rates. The base price was able to cushion the short-term correction at around USD 1,890 per ounce and is now moving towards resistance at USD 1,965.37. A breakout could then lead the precious metal toward the psychologically important mark at USD 2,000. The world's largest gold producer Newmont, which marked a new all-time high last week, could set a good sign. Due to the ongoing crises and the uncertain inflation outlook, every investor should consider a portfolio addition of gold mining stocks.
An attractive investment target, which has not yet been able to profit from a rising base price, is the exploration company Desert Gold. The stock market value is just EUR 12.60 million, and the Canadians were able to shine with strong results in recent weeks. Desert Gold announced the first pit-limited mineral resources from five deposit areas of the flagship SMSZ project. The resource estimate totals over 1 million ounces of gold. Accordingly, the measured and indicated mineral resource totaled 310,300 ounces of gold at 8.47 million tonnes and a grade of 1.14 g/t gold. The majority was in the "inferred" category, i.e. associated with higher uncertainty, with 769,200 ounces of gold (at 20.7Mt and a grade of 1.16 g/t).
A Phase 2 drill program is currently scheduled to commence on the 1.6 km Gourbassi West North zone. The open zone returned historical values of 1.94 g/t gold over 30m and 2.75 g/t gold over 12m and was only tested to a depth of 35m. This gold zone appears to be one of the larger gold systems on the property and has only been tested to a limited extent.
In addition, Desert Gold announced that it is closing the non-brokered private placement. The issuance of 11,741,667 units at a price of CAD 0.12 per unit raised a total of CAD 1,409,000, which will be used primarily for further drilling at the SMSZ project.
BioNTech - The second mainstay
Infection numbers are dropping after the highs, vaccination readiness is in the basement, and the chances of mandatory vaccination are approaching zero. For the vaccine manufacturer BioNTech, it is sour pickle time. Due to the at least temporary loss of the only source of revenue, the Mainz-based Company is now desperately looking for alternative sources of income. Despite the price correction - BioNTech shares were still trading at USD 374.58 at the end of November last year - the Company's market value of USD 41.29 billion is more than ambitious.
In one of the most promising alternatives, the Mainz-based Company presented data from the ongoing Phase 1/2 trial assessing the safety and preliminary efficacy of its novel CAR-T cell therapy approach BNT211 in patients with advanced solid tumors. Preliminary results from the doses of BNT211 studied showed a good safety profile and anti-tumor activity in testicular cancer patients. BioNTech's goal is to overcome the current hurdles in the use of cell therapies and to apply the great potential of this type of therapy to the treatment of solid tumors. To this end, BioNTech has combined its CAR-T and FixVac platform technologies to develop a CAR-T cell therapy product that is highly specific against cancer cells and continuously amplified by an activating mRNA vaccine.
In addition, an exclusive research collaboration was announced with Matinas BioPharma to develop new formulations for mRNA-based vaccines. The collaboration will explore the combination of different mRNA formats with Matinas' proprietary LNC platform technology. "After years of intensive research, in 2015 we pioneered the treatment of the first patient in history with an mRNA encapsulated in nanoparticles. Achieving strong immune responses at low dose administration is essential for developing well-tolerated and highly effective vaccines. It can be achieved with the right technology that enables targeted vaccine delivery," said Prof. Ugur Sahin, Chief Executive Officer and co-founder of BioNTech. Despite the aspirations, there is further downside potential in the share price. Should the uptrend at USD 161 break, the way to the support at USD 120.00 would be clear.
BYD - Victory over Tesla
In China, the "Build Your Dream" Company remains the measure of all things and defends its place in the sun ahead of its US competitor Tesla. With 104,338 units, BYD took an unchallenged lead over Tesla China, which delivered around 65,000 vehicles. However, the investing public took a negative view of the decline in retail sales of passenger cars in China last month. These fell by more than 10% compared to February 2022, a difference of nearly 1.58 million electric vehicles. In addition, investors are concerned that further production cuts may occur due to the Covid strategy.
Competitor NIO already reported that production has been halted due to restrictions related to the Coronavirus pandemic outbreak. Due to the uncertainties, caution is therefore also advised for BYD.
The uncertainties resulting from the Ukraine conflict and the Corona pandemic weigh on the stock market. Gold, on the other hand, is in demand and could make another attempt above the USD 2,000 mark. Desert Gold has not yet been able to profit despite strong results. BioNTech is currently ambitiously valued, and due to possible production restrictions, uncertainty prevails at BYD.
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