01. July 2021 | 10:41 CET
CureVac, Barrick Gold, Troilus Gold - Now it is important to keep your nerves!
The bull market is maturing a bit more every day. It is no longer young - because it has been running steadily since 2015. Admittedly, it stuttered a bit in March 2020, but the subsequent recovery was all the more violent. There are long-term fundamental trends, so-called megatrends, such as digitalization or e-mobility. At present, we can assume that the mining industry will also boom again in contrast to the crypto world. That is because the medium-term parameters here match the current economic trends. Here is a small selection of well-positioned stocks.
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ISIN: CUREVAC N.V. O.N. | NL0015436031 , BARRICK GOLD CORP. | CA0679011084 , TROILUS GOLD CORP. NEW | CA8968871068
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
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.
CureVac - Turned on its heels and up 70%
While the stock market is waiting impatiently for the next data on CureVac's so far disappointing COVID-19 vaccine candidate CVnCoV, the personnel merry-go-round is turning at the Tübingen-based Company. Yesterday, Malte Greune was appointed Chief Operating Officer (COO), effective July 1. The market had already expected a certain reaction to the share price crash.
Dr. Greune brings extensive experience in the global pharmaceutical industry, including vaccine production and fill & finish of biopharmaceuticals. In this position, he will join the board and lead CureVac's clinical and commercial manufacturing operations, among other responsibilities. Doubts had spread here in recent weeks; the failed vaccine approval cost investors a full 50%. Now, however, calculated from the bottom, it is up a neat 70% - well, it depends on the view. The CureVac share was never analytically cheap, which should be considered in the current discussion, but it is just the way with hype stocks.
For CureVac co-founder and current Chief Production Officer Florian von der Mülbe, there is a new task. He will take care of the further development of the product "The RNA Printer," CureVac's solution for the mobile, autonomous and automated production of RNA vaccines and therapeutics in GMP quality.
Investors now appear to have hope that CureVac will somehow turn the corner after weak initial data from its pivotal clinical trial of COVID-19 vaccine candidate CVnCoV. Overall, however, the stock remains a game with fire!
Barrick Gold - The turnaround will not be long in coming
The weak share price of Barrick Gold has become a farce. The debt-free gold giant presents better quarterly data from quarter to quarter, but the price knows only one direction - down! Barrick represents an annual production of over 7 million ounces and is thus, together with Newmont Mining, at the top of the global gold mining companies. The Company was founded in 1978 by Peter Munk as Barrick Petroleum and went public in 1983 as Barrick Gold. In addition to gold, the Company also mines silver and copper.
Currently, we should keep in mind the strong negative correlation with the crypto market. Gold and silver make sense from an inflation perspective to take a decent share of the portfolio. However, such a "risk overdrive phase" as now can also last longer. Because even though the crypto world is correcting, technology stocks, for example, continue to go through the roof. This ratio is hurting the safe-haven gold and thus also the mining operators. In itself, this is not a bad thing, as prices are low for entry, even if the current look at performance is rather disappointing.
The Barrick share had experienced an incredible upswing in 2020 with a plus of 60% until the summer, then the consolidation back to the starting point of about EUR 15 began. At currently EUR 17.7, the Company is dirt cheap compared to the current production output, but what is missing is the fundamental support from the gold price.
Troilus Gold - Financing round with great interest
Troilus Gold defies the weakening gold price and raises CAD 45 million. That is proof that good projects make sense even at lower precious metal prices. The Company intends to use the net proceeds to continue development work and feasibility studies, as well as for working capital and general corporate purposes. That puts Troilus powerfully ahead in exploration, as the high level of encouragement is not likely to come by accident, as Troilus has already achieved notable success with its documented results.
The property in question, including the historic Troilus Mine, has belonged to the eponymous Troilus Gold Corp. since 2017. So far, over 80,000 meters have been drilled, the indicated gold quantity reached 4.96 million ounces of gold in 2020, and another 3.15 million ounces can still be inferred. The former mine, located northeast of the Val-d'Or district in Quebec, produced 2 million ounces of gold and nearly 70,000 tons of copper between 1996 and 2010. It is located in one of the most favorable mining jurisdictions in the world.
The infrastructure couldn't be better because you can access the entire structure of the old mine, which has been open-pit mined for many years. Carbon neutral water energy and a permitted tailings facility with integrated water treatment are also available. Rarely do mines achieve such favorable framework factors.
Troilus shares stand at CAD 0.91 after the financing, and the market capitalization should now have risen to about CAD 170 million due to the listing of the new shares. Due to the very successful funding round, some research houses will likely adjust their price targets upwards soon. Stay closely on the ball here!