25. August 2021 | 13:25 CET
BioNTech, Kainantu Resources, QIAGEN - A threatening development
Most recently, with the appearance of the highly infectious Delta variant, it is clear that the Corona pandemic is not over. Infection numbers are rising, and the fourth wave has reached Germany. To better prepare for the growing number of cases this fall and avoid another hard lockdown, policymakers are relying on greater use of Corona testing in addition to vaccination programs. The higher demand for testing, also considering the start of the new school year, is again making the coffers of diagnostics companies ring.
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ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , Kainantu Resources Ltd. | CA48301H1073 , QIAGEN NV EO -_01 | NL0012169213
Among other PCR and rapid tests manufacturers, the biotechnology and diagnostics Company QIAGEN is benefiting from the worrying trend. Overall, test manufacturers recently shipped more than twice as many PCR tests to the US as they did in mid-June, QIAGEN CEO Thierry Bernard said Tuesday in an interview with Bloomberg news agency. He added that demand is also rising enormously in other countries like Israel, France, Italy, and Spain.
After growth prospects were only recently downgraded by growing vaccine advances, additional orders are coming onto the books due to the highly contagious Delta variant. However, he said the future course of demand for the PCR tests is difficult to gauge. From a technical perspective, QIAGEN's stock is on the verge of breaking out and climbing to a new all-time high. Investors should remain invested and tighten the stop.
Onward, ever onward
Without a doubt, vaccine manufacturers such as Moderna or BioNTech are the winners of the crisis. And even at dizzying valuation levels, the shares are being bought up after short, volatile setbacks. After a correction in the share price from over USD 450 to USD 325, BioNTech is once again preparing to overcome the USD 400 mark.
The Mainz-based Company benefited from a decision by the US Food and Drug Administration (FDA), which, together with partner Pfizer, was the first Company in the US to receive regular approval for a Corona vaccine. "The FDA's approval of this vaccine is a milestone in the fight against the COVID-19 pandemic," said acting FDA Commissioner Janet Woodcock. Despite this positive news, the valuations of BioNTech at EUR 79 billion and Moderna at as much as USD 142 billion are extremely inflated.
Delta puts the brakes on
With the economy recovering and inflation on the rise, calls for central banks to end unlimited bond purchases and bring forward interest rate hikes have been heard more frequently in recent weeks. But the delta variant supports FED Chairman Jerome Powell's cautious strategy. He sees the economy's recovery after the global lockdowns as temporary and wants to continue to adhere to the loose monetary policy. There are already signs of an economic slowdown, so the timing of tapering is unlikely to be pushed further forward. Low interest rates and high inflation are the best conditions for a resurgent gold price. In the long term, high government debt levels mean that there is probably little to be gained from investing in gold or gold mining stocks.
Promising commodity projects with a focus on gold and copper are in the portfolio of the Canadian mining company Kainantu Resources. Geographically, the focus is on the Asia-Pacific island nation of Papua New Guinea (PNG). The government supports the mining and oil and gas industries so that gold, copper, nickel mining, and crude oil and gas production contribute about 85% of the gross domestic product. Favorable mining laws, similar to Australia's, have recently allowed industry giants such as Exxon Mobil and TOTAL to set up operations in the world's third-largest island nation.
In addition to Barrick Gold and Newcrest Mining, the Kainantu mine, operated by K92 Mining, is one of the highest-grade deposits in PNG, and last year it had the fourth-highest production rate in the world. Close to the K92 Mine, Kainantu Resources has two prospective projects. KRL South and KRL North hold the potential to host high-grade epithermal and porphyry mineralization similar to that found in the region. KRL South covers 597 square meters and is located in the Eastern Highlands province, approximately 30 kilometers from the mine of K92. The project is located in an unexplored area separated by the Kainantu fault line in the middle. KRL North is smaller at 129 sq m, located on the central Bilimoia mineral field and directly adjacent to K92. In addition, the May River Project was recently acquired, adjacent to one of the world's largest undeveloped copper resources at Freida River.
Cooperation with Asia Pacific Energy Ventures and collaboration with stakeholders at all levels provides Kainantu Resources access to world-class deposits in the island nation. The Canadian Company aims to build a high-quality Asia Pacific junior gold mining company in the long term. With a market capitalization of CAD 10 million, the Company has plenty of imagination.
You can read an in-depth interview with Kainantu Resources CEO Matthew Salthouse here.
The fourth wave is rolling towards Germany. In addition to vaccine producers, manufacturers of PCR and rapid tests such as QIAGEN are the primary beneficiaries. Due to the Delta variant, there could be a renewed weakening of the economy; interest rate hikes are therefore not expected. High inflation and low-interest rates are the best conditions to invest in gold mining stocks. Here, one should observe the share of Kainantu Resources.