September 24th, 2024 | 07:30 CEST
Boom in gold and travel: Barrick Gold CEO warns! TUI focuses on luxury! Globex Mining share with catch-up potential!
The gold price is receiving new momentum due to falling interest rates in the US. The takeover merry-go-round is also turning, but the Barrick Gold CEO is warning. Investors should keep an eye on developments in 2010. The Globex Mining share has a lot of catch-up potential. The business of the mining incubator is de-risked and around half of the projects are in the precious metals sector. Meanwhile, business is booming at TUI. Among other things, the Company plans to grow more strongly in the luxury segment. Nevertheless, investors and analysts do not seem convinced by the stock. Is this justified?
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
BARRICK GOLD CORP. | CA0679011084 , GLOBEX MINING ENTPRS INC. | CA3799005093 , TUI AG NA O.N. | DE000TUAG505
Table of contents:
"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Barrick Gold: Will it make the leap over EUR 18?
With the rising price of gold, the Barrick Gold share has also reached a new annual high in recent weeks. The security is currently consolidating above the USD 20 mark. It was unable to maintain this level in 2023 and fell back to USD 15. Currently, there is much to suggest that the rally will continue. The next target is the USD 25 mark.
The gold price has recently received a boost from the US Federal Reserve's interest rate cut. Nevertheless, Mark Bristow is putting the brakes on the euphoria, which is a positive signal. In an interview with kitco.com, the Barrick CEO said that the situation reminds him of 2010. At that time, the gold price jumped above the USD 1,000 mark, and everyone chased the price. In light of the recent acquisition of Centamin by AngloGold Ashanti for USD 2.5 billion and the purchase of Osisko by Gold Fields for USD 2.16 billion, Bristow sees warning signs. He hopes that the industry will not overreact as it did back then.
Globex Mining: Share Buyback Program and Rising Commodity Prices
After the large producers, it is now the explorers who are becoming attractive to investors. Globex Mining is ideally positioned for this. Whether gold, silver, rare earths or hydrogen, the mining incubator from Canada is profiting and thus the stock is enticing investors to buy. Even in the case of lithium, the environment seems to be improving, and with the rising prices, investors are returning. Globex Mining has built a unique portfolio of exploration projects on the stock market in recent years. Of the approximately 250 projects, around half include the precious metals gold, silver, platinum, or palladium. The USP: Globex makes the projects available to other companies and transfers the costs and risks of exploration. In return, the Canadian company receives cash, stock options, and future royalty payments.
The stock has not yet been able to benefit from the strong news flow in the current year. After trading at EUR 0.73 in June, it is currently trading at EUR 0.56, around 11% lower than at the beginning of the year. Therefore, a share buyback program for the next 12 months was recently decided.
Recently, exciting news about a silica project in Quebec, Canada, was published. According to the news, exploration activities by Quebec Innovative Materials Corp. and the Institut National de la Recherche Scientifique (INRS) have revealed significant hydrogen concentrations in the region. At the beginning of September, the discovery of hydrogen in concentrations of over 1,000 parts per million (ppm) was reported, which is well above the instrumental detection limit. Globex's property would be centrally located in this emerging hydrogen exploration area, Globex announced, and it wants to benefit from the hydrogen boom.
TUI: Can luxury drive the share price?
TUI is currently experiencing a travel boom. The tourism group is not showing any signs of economic difficulties. After a record-level summer season, autumn and winter also appear to be starting strongly. In addition to new hotel allotments and new cruise ships, luxury travel should also boost TUI's growth.
Airtours is the group's luxury brand and is expected to grow strongly in the coming years. Airtours boss Steffen Boehnke points to the positive industry forecasts. According to these forecasts, the global luxury travel market now has an annual turnover of around EUR 130 billion and is growing by more than 10% annually. The Company's Airtours Private Travel division is growing even faster, at 30%. Airtours has added 200 new luxury hotels to its program for the coming winter and expanded its luxury cruise offering.
However, neither shareholders nor analysts are convinced by the opportunities offered by the TUI share. The share has lost around 9% of its value in the current year. Of the analysts, Bernstein Research had most recently confirmed the "Market-Perform" recommendation. The target price of EUR 6.80 is only just above the current level.
The gold boom could continue. Barrick remains a core investment, and the cautious stance of its CEO is seen as a positive sign. The stock of Globex Mining has a lot of catch-up potential. The business is de-risked, and about half of the projects are in the precious metals sector. At TUI, operating performance and share price continue to develop in different directions. The key question is whether the weakening economy will eventually affect tourism or if the stock will begin to rally.
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