22. March 2021 | 08:30 CET
Desert Gold, Barrick Gold, Aurelius Equity, TeamViewer - The April Winners!
The March decline is over. Which stocks will be the winners in April? Gold turned in at USD 1,680 and ended up at USD 1,745 on Friday. The substantial rise in yields in the first quarter certainly helped here, bringing the US 30-year yield from 1.7% closer to the 2.5% mark. At this point, the inflation discussions start to get loud, which immediately feed through to the growth stocks on the NASDAQ. Borrowed money becomes more expensive, making it all the more difficult to re-finance growth companies. Often in history, interest rate turning points were also critical stock phases, but there was always a laughing winner: GOLD!
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ISIN: CA25039N4084 , CA0679011084 , DE000A0JK2A8 , DE000A2YN900
"[...] We can make a big increase in value with little capital. [...]" David Mason, Managing Director, CEO, NewPeak Metals Ltd.
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.
Desert Gold - Best positioned in Africa
The search for gold in Africa already has a long history. Apart from the extraction of diamonds, crude oil, copper and coltan, gold in particular is an important component of African raw material extraction. In addition to the large gold-producing countries such as China, the USA/Canada, Russia and Australia, there are many smaller countries in which new gold mines have been developed in recent years. These include Ghana, Tanzania and Mali.
Desert Gold Ventures operates a 410 square kilometer project in the Senegal Mali Shear Zone (SMSZ) in western Mali. The SMSZ is associated with 5 adjacent mines and is considered the most extensive contiguous non-producing land package in the area with very prominent geological structural features.
Fieldwork resumed in early December 2020. The Company's joint venture partner, Indigo Exploration, has already completed its auger drilling program on the Djimbala concession area, located in the Yanfolila gold belt in southern Mali. All samples have been delivered to the laboratory for assaying and results should be available soon. A 20,000 meter drill program is already fully funded for 2021. Desert Gold is now focusing on the Gourbassi West, Gourbassi East and Barani East zones.
The goal of the exploration program is to develop a Tier 1 gold deposit that can be optimally integrated, especially for a significant gold producer. The Desert share price currently stands at CAD 0.15, so a major like Barrick Gold would only need to invest USD 16 million to secure this interesting property.
Barrick Gold - net debt reduced to zero
One more look at the world's second-largest gold company. Facing challenges in all regions, especially the Covid-19 pandemic, Barrick Gold has done an excellent job in 2020. CEO Mark Bristow is very pleased with the Company's performance, particularly its ESG strategy with all stakeholders, a critical factor in last year's performance.
Barrick Gold, which as recently as 2013 was saddled with a debt mountain of more than USD 13 billion, now has zero net debt, no significant maturities over the next 10 years and a robust balance sheet with strong liquidity of more than USD 5 billion. The quarterly dividend has tripled. The board recommended in the AGM that an additional USD 750 million of cash be distributed this year as a return of capital to shareholders.
Momentum in the gold sector is very high, which is why we believe the acquisition merry-go-round will pick up this year. A promising explorer like Desert Gold could come up with an unexpected offer very quickly. Last week it was announced that Evolution Mining offered a 40% premium to the market price for Battle North Gold.
Aurelius Equity - Acquisition of Panasonic Battery Division
Aurelius Equity Opportunities SE is an investment company specializing in special situations. With the publication of the annual figures 2020, there will be significantly more corporate transactions again this year. In the last few days, the first takeover announcements were made, namely HÜPPE GmbH (manufacturer of shower walls) and Panasonic's European consumer battery business.
These transactions are good examples of Aurelius' successful carve-out model, whereby marginal businesses are taken out of large groups and developed further. The Panasonic transaction is a co-investment, as there are also plans to implement larger acquisition projects in the future. Panasonic's new group division employs around 900 people and comes in at EUR 230 million in sales for 2019.
The Aurelius share was one of the best performing German stocks in the last 4 weeks. The share price was able to jump up by 55%, but there are now chart resistances at prices around EUR 28.5.
TeamViewer - Sponsorship agreement with Manchester United
Sometimes an offensive move is just too much for shareholders. TeamViewer's share price is plummeting after an exciting marketing campaign. The reason for this is the announcement that the Company will become the main sponsor of the Premier League club Manchester United from the new 2021/22 season. The German software Company hopes that the marketing and sponsorship partnership will significantly increase its profile on the international stage.
Now, many companies would love to have this jersey spot but can't afford it. TeamViewer is following in the footsteps of Chevrolet and AIG and will appear in the media in a big way for the first time. After all, Manchester United has 1.1 billion supporters worldwide and is always at the forefront on the international turf.
"We are very excited about this great partnership with this legendary soccer club. It will further increase the international awareness of our brand and significantly contribute to marketing our comprehensive solution portfolio even better across all customer groups," says Oliver Steil, CEO of TeamViewer.
Details of the sports sponsorship agreement have been kept under wraps by all parties involved. The TeamViewer share acknowledged the contract with a weekly loss of 12%. Due to the predominantly positive effects of the deal, we expect the share price to recover soon.