Close menu




June 4th, 2021 | 11:12 CEST

Desert Gold, Endeavour Mining, Newmont - Gold is rallying as expected

  • Gold
Photo credits: pixabay.com

I pointed out the double bottom in gold in one of my earlier articles, and since then, the price has risen over USD 200. Interestingly, the buy-side consists mainly of young investors up to 25 years old. According to research from several online brokers, they own 39% of gold - 3 years ago, it was only 26%. This percentage is three times higher than in the overall population. Inflows into physically deposited gold ETFs amounted to nearly 34 tons. Driven by inflation fears and political tensions, gold is enjoying a renewed revival. We take a look at three gold stocks today.

time to read: 2 minutes | Author: Armin Schulz
ISIN: CA25039N4084 , KYG3040R1589 , US6516391066

Table of contents:


    Nick Luksha, President, Prospect Ridge Resources
    "[...] As we look at four or more zones in more detail from the beginning, investors can expect a continuous news flow that will underscore our vision of the Holy Grail project as a giant opportunity. [...]" Nick Luksha, President, Prospect Ridge Resources

    Full interview

     

    Desert Gold - Exciting new exploration targets found

    Since the last update in mid-April, a lot has happened at Desert Gold's SMSZ project. New exploration targets and possible gold anomalies have been identified along the western concession area. Meanwhile, more than 75% of the planned exploration program has been completed. Exploration drilling is 59% complete, and auger drilling has already been over-completed at 107%, as has soil sampling at 110%.

    Drilling to the north of the Goubassi West deposit means that the gold zone is now 3km long. The newly discovered gold zone returned 8.95 grams per tonne gold in a grab sample. A total of seven new gold anomalies up to 2.4km in length have been discovered. Currently, no results are available for 9,764 samples. A second drill rig is scheduled to arrive in June to accelerate exploration.

    Approximately 170 additional air core holes are planned to be drilled over 8,500m to test the newly discovered gold anomalies further. The planned drill meters may be increased as more drill sample results are received. In parallel, the Company is working on the 43-101 report, which is expected to be completed in the fourth quarter. So things are moving forward, but the share has still not managed to break out of the sideways range of EUR 0.09 to 0.12. One should have this value on the watchlist and follow the news.

    Endeavour Mining - Cheaper than the big miners

    Endeavor Mining is the largest gold producer in West Africa with producing mines in Senegal, Ivory Coast and Burkina Faso and a strong portfolio of advanced development projects and exploration facilities in the Birimian Greenstone Belt. The Canadian Company has cleaned up its portfolio and is focusing on larger mines with lower costs. Currently, production can be had for USD 868 per ounce.

    The Agbaou mine was sold, and the Terenga Gold Corporation was acquired in November 2020 already. As a result, the production costs for one ounce could be pushed down by USD 31 to USD 868. Due to the purchase of the Terenga assets, the Company currently still has debts, but these should be repaid quite quickly. In the future, the Company will invest more in exploration, with a lot expected from the greenfield area in particular.

    The figures for the first quarter were impressive. Gold production doubled and profits climbed 111% to USD 0.50. If the gold price continues to rise, earnings will improve accordingly. A share buyback program is active and there is a dividend yield of 1.5%. While other large mining companies are valued at a P/E ratio of over 20, Endeavour has a P/E ratio of only 11.

    Newmont - Basic investment in gold

    Newmont is the undisputed number 1 gold producer. On May 19, the stock reached a multi-year high, which is not only related to the rising gold price. The first-quarter numbers were good. Net income for the first quarter of 2021 was USD 538 million, or 67 cents per share, and revenue was about USD 2.9 billion.

    Operationally, improvement can be seen primarily at former Goldcorp mines, reflected in production volumes and production costs. In addition, the CEO announced that Newmont is looking at large copper projects, where production will be significantly expanded. Copper is an absolute trend metal due to electrification.

    The stock has broken out to the upside, the Company has declared a share buyback program, and there is a dividend yield of about 3% on top. Newmont, as the number 1 gold producer, will benefit the most from a rising gold price. However, investors should not buy at the high but wait for a setback.


    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 news.financial. 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

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Nico Popp on December 5th, 2022 | 10:36 CET

    Where gold shines brightest: Barrick Gold, Desert Gold, Uniper

    • Mining
    • Gold
    • Energy

    Secretly and quietly, gold has stalked towards the USD 1,800 mark. The reasons are the weaker dollar in combination with a possible end of the interest rate turnaround and the growing uncertainty: Even if current economic data, such as the recently published US labor market report, give hope, the risks are growing in the long term. We look at two exciting gold stocks and use the example of Uniper to explain why gold could soon be booming.

    Read

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on December 1st, 2022 | 09:46 CET

    BYD, Auxico Resources, Hensoldt, Rheinmetall - Prepared for the future

    • Mining
    • Gold
    • RareEarths
    • Defense

    Russia's invasion of Ukraine at the end of February this year changed everything. While global stock markets fell into a state of shock, shares in defense companies boomed. With the arms buildup in the Western world, the future looks bright for companies that were still viewed critically before the war of aggression. However, in order to produce enough tanks, aircraft and other war equipment, the industry needs a variety of critical metals for which demand already exceeds supply.

    Read