July 21st, 2022 | 11:34 CEST
Buy now? BioNTech, Nordex and MAS Gold
Table of contents:
"[...] One focus will be on deposits near the surface. These would be good arguments for a quick production decision using the low-cost heap leaching method. [...]" Brodie Sutherland, CEO, Tocvan Ventures
MAS Gold: Favorably valued with leverage on the gold price
In recent months, gold has not lived up to its reputation as a safe haven. The reason for this is especially the strong US dollar, which has noticeably hurt the gold price. But more and more experts expect that the US dollar has already seen its peak price or will reach it by the fall. Then not only the gold price should go up, but also gold mining shares. Those who like it a little more speculative reach for explorer shares. MAS Gold is one of them. The share price of the Canadian Company has halved in recent months to around EUR 0.042, and the market capitalization is only around EUR 10 million - anything but expensive. That is because MAS Gold is active in one of the best mining regions in the world: the La Ronge greenstone belt in the Canadian province of Saskatchewan. There is an excellent infrastructure there and it is assumed that there are still more than 1 million ounces of gold in the ground. MAS Gold wants to take a leaf out of this book.
In this attractive region, the Canadians own several properties with gold deposits and copper-gold deposits. The total area covers more than 34,000 hectares. Most recently, the Company purchased an additional 843-hectare area. The latest drill results were also promising. They showed an average gold grade of 0.61 to 1.88 g/t over more than 4,000m. Further drilling is planned in order to make a medium-term production decision. Financing has been secured for the time being through two recent private placements. Encouragingly, much of the capital is coming from management and insiders around CEO Jim Engdahl. From the mining veteran's perspective, MAS Gold is in for an exciting exploration season. With a rising gold price and continued good drill results, the stock could be in for a golden second half.
BioNTech: A golden autumn ahead?
BioNTech shareholders are also hoping for a golden autumn. However, this would mean that a new Corona wave will hit us, which would once again flush billions into the coffers of the vaccine manufacturer. The World Health Organization (WHO) has warned of an autumn wave. It is observing with concern the rising numbers of infections and hospitalizations in Europe. With the end of the vacation season and the start of the new school year, the numbers could rise further and pose a challenge for fall and winter. BioNTech is preparing for such a scenario: Together with partner Pfizer, they have submitted an application to the European Medicines Agency (EMA) for approval of their COVID-19 vaccine adapted for the Omicron subvariant BA.1. The US Food and Drug Administration (FDA) is also currently reviewing the enhanced vaccine. BioNTech shares have bottomed out nicely in recent months and are currently trading at around EUR 160. With a new Corona wave in Europe and the US, the BioNTech share could succeed in breaking out to the upside. There is still plenty of room to reach the all-time high of over EUR 400.
Nordex: Buy recommendation from Jefferies despite ongoing problems
Given the urgent need for alternatives to energy imports from Russia and other countries, the wind energy sector is also facing golden times. Unfortunately, however, there is no sign of this at Nordex. The Company has been struggling with low margins for a long time. The problems are numerous: large competitors, supply bottlenecks, increased raw material prices, high transport costs and rising interest rates. At least in the short term, the Company has full coffers as two capital increases were carried out within a few weeks. From Goldman Sachs' point of view, the capitalization worries that arose in the last quarterly report have thus been dispelled for the time being. However, the other problems remain; therefore, Goldman analysts rate the Nordex share as "neutral" with a target price of EUR 13.70. Jefferies is somewhat more optimistic. The analysts emphasize that cash holdings are of great importance in the wind power industry. In addition, Nordex has good prospects in Europe in particular. For them, the Nordex share is, therefore, a "buy" with a price target of EUR 16. The stock is currently trading at just over EUR 8.
According to JPMorgan, sentiment on the stock markets is rising and investors should position themselves. BioNTech should benefit from a Corona wave in the fall and MAS Gold from good drilling results and a weaker US dollar. Nordex has many problems, even though Jefferies recommends the stock.
Conflict of interest
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