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Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


Karim Nanji, CEO, Marble Financial

Karim Nanji
CEO | Marble Financial
1200-1166 Alberni Street, V6E 3Z3 Vancouver (CAN)

info@marblefinancial.ca

+1-604-336-0185

Interview with Marble Financial: Fintech innovator plans expansion into the US


14. January 2021 | 18:43 CET

Blackrock Gold, Barrick Gold, Sibanye Stillwater: In gold, we trust!

  • Gold
Photo credits: Blackrock Gold Corp.

Why does one need precious metals at the moment? For hedging? No question, we are currently in the biggest liquidity boom since the turn of the millennium, and every day there are new highs on the stock markets. Usually, one would say that there is no need for hedging. Nevertheless, a sensible spread across all sectors makes perfect sense. Right now, the hot topics are hydrogen, e-mobility and copper. When discussing mountains of debt and when inflation fills the gazettes again, then the need for precious metals is back immediately. Therefore, one can state: In asset price inflation, which is undoubtedly taking place presently, gold, silver and platinum will also potentially see a sharp price increase! In gold, we trust - at the latest if the Bitcoin loses 50% again!

time to read: 3 minutes by André Will-Laudien


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author


Blackrock Gold - On the jump

Blackrock Gold had a prolonged consolidation down to CAD 0.63 in December 2020. The price had previously jumped very sharply to over CAD 1.50 in the summer of 2020 because of the excellent properties in Tonopah West. That is a good indication of where it will go again in the next push. What else can fuel a positive sentiment?

There were new findings from the exploration site in mid-December. The latest drilling along the Tonopah West project's eastern boundary shows that Victor's vein extends a full 480 meters to the east. Core drilling along the vein adjacent to Blackrock's eastern edge returned a peak of 1,079 grams per tonne (g/t) silver equivalent (AgEq) and an astonishing 5.19 g/t gold (Au). Further assays returned grades of 212 g/t and 582g/t over 6.8 meters, including a large intercept of 0.8 meters with 727 g/t AgEq and 3.56 g/t gold. This news led to an ad hoc 60% price premium to over CAD 1.00. The price remains in this range.

Now, Silver Cloud is another project close to Hecla Mining's Hollister Mine. Hecla itself, with USD 3.2 billion, would be big enough to take over the properties from Blackrock Gold. However, Blackrock probably will not know what treasure they are still harbouring underground until after completing the planned 3,500-meter drill programs. The planned spin-off of Silver Cloud also brings enormous potential. The Blackrock share currently costs around CAD 0.95 and is in a waiting position on the chart until either the precious metals pick up or further exploration results are available. Time enough to wade-in into the market.

Barrick Gold - The standard in gold mining

Anyone who trades in gold is undoubtedly familiar with the standard stock Barrick Gold, based in Toronto. The gold prospector represents an annual production of over 7 million ounces, placing it at the top of the global gold mining companies along with Newmont Mining. The Company was founded in 1978 by Peter Munk as Barrick Petroleum and went public as Barrick Gold in 1983. In addition to gold, the Company also mines silver and copper.

For the third quarter of 2020, Barrick reported an operating cash flow of USD 1.9 billion, which pushed net debt to a low USD 400 million. Five years ago, Barrick was more than USD 5 billion in debt during the crisis; they had overbought in the acquisition frenzy. The balance sheet has consolidated well, and the Company is now earning USD 0.50 per share per quarter. That makes about USD 2 a year, and at USD 23.50, that's a P/E ratio of 13.8. That's not too expensive, considering that the median analyst estimate for the gold price is about USD 2150 for 2021. Barrick is producing at an average cost (AISC) of USD 984 - I guess that is what you call a "dream margin".

What applies to the stock market's blue chips, we must also apply to the explorers like Blackrock. The higher the ounce price climbs, the more the ground's assets are valued, significantly since demand increases when spot prices rise substantially, and the mines are at the edge of their production capacity. Therefore, Barrick will have to retake the market if it wants to remain at the forefront.

Sibanye-Stillwater Ltd - Long restructuring, now moving forward

Sibanye-Stillwater Limited is a South African mining company that is the largest gold producer in the country and one of the world's ten largest gold producers. Other interests for the Company are platinum and palladium, where it is also in the top ranks. Sibanye Gold operated five gold mines in the Witwatersrand in 2017, historically producing a total of 43.6 tonnes of gold. PGM properties are located in South Africa (Rustenburg) and the USA (Stillwater). An extensive recycling plant for the recovery of PGM metals is also maintained there.

The current group was formed in November 2012 as a subsidiary of Gold Fields. It was then listed on the stock exchange in 2013. In September 2015, Anglo American sold three of its South African platinum mines to Sibanye Gold. Stillwater, in the US, has three years of restructuring behind them. The merger devoured a considerable amount of equity, which had to be increased a whole three times to get the debt mountain back under control.

Since March 2020, Sibanye-Stillwater stock has been one of the best performers among precious metals standard stocks. The share price ran from around EUR 1.00 to EUR 3.45 yesterday. The value is attractive mainly because of the assets in rhodium, ruthenium and iridium. In Q3, EBITDA reached USD 922 million, and dividend payments resumed. Leverage has now been consistently reduced since 2017, and there is currently USD 1.7 billion in cash again. 2021 should be a decisive year for Sibanya-Stillwater, the Company could become a significant player in the M&A scene.


Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

15. April 2021 | 07:24 CET | by André Will-Laudien

Coinbase, Plug Power, NSJ Gold Corp. - Bitcoin, inflation, gold - triple whammy!

  • Gold

The crypto craze has erupted. Nothing is currently causing as much of a stir as cryptocurrencies, their trading platforms and all the service companies surrounding them. Never before have there been such price surges in associated assets in such a short period. There is widespread talk of the crypto world as a means to combat inflation and provide a new payment system. Let's be honest: a currency that fluctuates by more than 500% every six months is hardly suitable for mapping the payment flows of millions of transactions in the goods sector. A Bitcoin that cost EUR 10,000 in the summer of 2020 has reached prices of over EUR 50,000 today. How should one deal with this alleged "currency" - Impossible, as Bitcoin itself is probably inflationary!

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15. April 2021 | 07:00 CET | by Nico Popp

Barrick Gold, Desert Gold, Steinhoff: Where inflation is an opportunity

  • Gold

Inflation is back! In the USA, annual inflation has already climbed to 2.6%. Experts believe that the 3% mark will also be targeted during the course of the year. What does this mean for investors? It is becoming increasingly more important to protect one's assets! Shares can play a central role here as these traditionally perform well during inflationary phases. But beware: Inflation strikes particularly hard at growth stocks that will only make profits in the distant future.

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14. April 2021 | 12:30 CET | by André Will-Laudien

Osino Resources, Barrick Gold, Sibanye Stillwater - Gold in Turnaround!

  • Gold

The large gold producers are left lying in the current environment. What counts on the capital markets is the slight inflation, which one gladly accepts, because the economies have been suffering for years from the prescribed minus interest rate and deflationary tendencies. In other stock market cycles, demonetization phases were always good times for the precious metals; this is not yet evident at present. After the significant correction in March 2020, there were sharp rises in mining stocks until late summer 2020, but a large part of the gains will gradually melt away again in 2021. Is there still hope for the precious metals?

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