Close menu

August 13th, 2021 | 10:34 CEST

Desert Gold, Barrick Gold, Nordex - These are the winners!

  • Gold
Photo credits:

Even if inflation in the US has fallen slightly compared to the previous month, it is still at a high level of over 5%. This cannot be explained away. Despite all efforts of central bankers worldwide to regard the high inflation as only a temporary phenomenon, it is more advisable to adjust to the more realistic scenario of a persistently high inflation rate. To protect oneself as an investor against the loss of purchasing power, it helps to invest in tangible assets such as shares, real estate and commodities. With the following three companies, investors have good cards to be on the winning side.

time to read: 3 minutes | Author: Carsten Mainitz

Table of contents:

    DESERT GOLD VENTURES INC - Soon, the time will come

    Desert Gold Ventures stock is still barely on the radar of investors. As a result, there is a tremendous investment opportunity. The share certificates of the Canadian gold explorer have corrected significantly in the last 12 months from CAD 0.30 to CAD 0.13. As a result, the Company is currently valued at only CAD 18 million, which is far too low given the quality and size of the important project and the emerging development progress.

    Desert Gold is focused on deposits in the West African countries of Mali, Ghana and Rwanda. The Company's most significant asset is the SMSZ project in southern Mali on the border with Guinea. Named after the shear zone between Senegal and Mali, the SMSZ project (Senegal-Mali Shear Zone) covers 410 sq km. It is the largest contiguous non-producing land package in the region. Several producing Tier 1 gold mines are located in geographic proximity. These include B2 Gold's Fekola mine, Barrick's Gounkoto and Loulo mines, and Allied Gold's Sadiola and Yatela mines. Mali is, after all, Africa's fourth-largest gold producer.

    Previous drill programs have delivered good results and led to the identification of more than 20 gold zones. The current drill program, which is expected to be completed this summer, will drill 20,000 m. The program will focus on the exploration of existing zones as well as the discovery of new zones. The Company had already completed more than 80% of the campaign with over 230 drill holes at the end of June.

    Therefore, things will get exciting soon when Desert Gold publishes its first drill results. A NI 43-101 compliant resource estimate could even be produced by the end of the year, allowing a more accurate determination of the project's recoverability. But already, the new drill data will be a good indication of the potential. In our opinion, it is only a matter of time before the undervalued stock is kissed awake.

    BARRICK GOLD CORPORATION - Risks under control

    With adjusted quarterly earnings of USD 0.29 per share, the Canadians recently beat market expectations, which were for EPS of USD 0.26. Shareholders will benefit from the Company's success with an announced dividend of USD 0.09 and a special dividend of USD 0.14. Barrick also reaffirmed its full-year guidance. The Group is benefiting from high gold and copper prices.

    But it is worth looking at the cost side because margin pressure can naturally arise from here. In this respect, the CEO's recent statements are interesting. What we learn is that the world's second-largest gold producer built up storage capacities at a very early stage and was thus able to largely avoid price increases for goods and corona-related logistics problems. Only a further increase in the price of oil would impact the Group's cost base. Company CEO Bristow put the increase due to this effect at a mere 1% - a level that can be absorbed. Barrick remains a fundamental investment in the commodities sector.

    NORDEX SE - In the right direction

    The Group's half-year figures pleased the stock market. Even in the days before, the price of Nordex stock climbed. An ideal world? Not yet. Sales have increased and order intake has risen, but earnings are negative. Nevertheless, the loss was reduced enormously compared to the same disastrous period last year.

    The CEO's comments that the turmoil in the raw materials and logistics markets is still being felt carries a lot of weight when you look at the industry. Competitor Vestas recently cut its full-year forecast due to significant corona-related constraints in a number of countries. Unsurprisingly, the stock reacted negatively to this. It should be noted that the Danes have already had to lower their expectations several times and that market participants bitterly resent this. In summary, Nordex is on a good path back to profitability and with a realistic view of the business environment. The share price should continue to reflect this positively.

    Shares offer inflation protection. With Barrick Gold and Desert Gold shares, investors can also benefit from rising precious metal prices. Barrick Gold is an established player in the market, which analysts rate positively. If you are looking for a strongly undervalued share whose price could soon rise significantly in the wake of good drilling results, you should take a closer look at Desert Gold.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

    Related comments:

    Commented by Fabian Lorenz on March 23rd, 2023 | 08:00 CET

    Gold to USD 3,000? Barrick Gold and Desert Gold profit. What is going on at Vonovia?

    • Mining
    • Gold
    • RealEstate
    • Inflation

    Will the price of gold rise to USD 3,000 per ounce before the end of the year? That is what investment professional Leigh Goehring thinks is possible. He is a managing director at Goehring & Rozencwajg, manages a commodity fund, among other things, and expects a "decade of inflation." If the forecast comes true, gold stocks will at least be an attractive portfolio addition. In addition to industry heavyweights like Barrick Gold, explorers can be worthwhile as leverage to the gold price. One such explorer is Desert Gold. The share of the Canadian company reacted yesterday with a price jump of over 10% to a project update. In contrast, the outlook for "concrete gold" remains challenging. Vonovia, for example, was once again downgraded by analysts despite the significant share price losses of recent months. At the same time, there are also positive comments.


    Commented by Armin Schulz on March 23rd, 2023 | 07:58 CET

    Manuka Resources starts gold production. Can Varta and K+S manage the turnaround?

    • Mining
    • Vanadium
    • Gold
    • fertilizer
    • Batteries

    On March 22, all eyes were on the FED decision. Will the balancing act between fighting inflation and stabilizing the banking system succeed? The collapse of Silicon Valley Bank and the difficulties of Credit Suisse have caused plenty of uncertainty. The result has been significant premiums in the price of gold and cryptocurrencies as people try to protect their money. But regardless of the interest rate decision, there is interesting news on companies that have been under pressure recently and are waiting for a turnaround. We take a look at three of those candidates today.


    Commented by André Will-Laudien on March 22nd, 2023 | 10:49 CET

    A new banking crisis in 2023? Deutsche Bank, Blackrock Silver, Commerzbank - Gold and Silver are back!

    • Mining
    • Gold
    • Silver
    • PreciousMetals
    • Banking

    Central bankers are currently in a huge dilemma. They should fight the price pressure with a tough interest rate policy and gradual withdrawal of liquidity. However, this increases the existing risk of recession and the danger of a new financial crisis worldwide. In fact, past interest rate restrictions have already left grinding marks in the US banking system because gigantic write-downs on price losses still lie dormant in the books of institutions that had believed in eternally low interest rates. After the collapse of Silicon Valley Bank and the forced takeover of Credit Suisse, uncertainty has again taken a stranglehold on the markets. Gold and silver reacted with a giant leap. We look at the current situation.