November 16th, 2023 | 07:30 CET
Desert Gold, Nordex, RWE: Gold and wind energy as solid investments: Portfolio diversification for sustainable growth
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"[...] 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 Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.
Desert Gold in Mali: Mali - A country in transition with promising investment opportunities
There is currently a lot going on in Mali in West Africa. In order to avoid sinking into the chaos of fake news, local NGOs are working to train local journalists and bloggers to fact-check reports. Because in the long term, the decision on war and peace in the Sahel lies in the hands of a digitized young generation connected via social networks. The NGOs aim to resolve conflicts before they escalate further. The plan nzz.ch/feuilleton/medien/mali-schulung-von-journalisten-und-bloggern-gegen-hass-im-netz-ld.1764802 seems to be working, as the country has a lot to offer.
Mali is rich in mineral resources, including phosphate, uranium and limestone, and is one of the largest gold producers in Africa. The leading companies in Mali are B2Gold, Barrick Gold and AngloGold Ashanti. In 2022, the global market capitalization of gold mining was estimated at around USD 198 billion and is expected to rise to around USD 260 billion by 2030. This corresponds to a CAGR of approximately 3.5% from 2023 to 2030. linkedin.com/pulse/global-gold-mining-market-size-share-growth-trends-outlook-howard Solid, relaxed growth with a desire for the safe haven.
One up-and-coming gold producer in Mali is Desert Gold Ventures. The explorer company has used the last few years to explore its 440 sq km SMSZ project extensively. There are more than twenty gold zones in this project. Desert Gold Ventures has the potential to become one of the most important mine operators in the region. According to the latest results, the project is located in Gold Zone 1 and has Inferred mineral resources of 769,200 ounces of gold. In addition, there are Measured and Indicated (M&I) mineral resources of 310,300 ounces of gold. This highlights the project's potential desertgold.ca/projects/smsz-project and positions it among well-known world-class gold deposits.
Nordex: Successful quarterly figures and promising prospects
In contrast to Siemens Energy, investors in Nordex can look forward to share price gains. The North German company performed well in the past quarter. Nordex posted earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 48 million in Q3/2023, compared to a loss of EUR 27 million in the same period of the previous year. Someone has done their homework.
"The third quarter was characterized by a high installation rate for the Nordex Group. This allowed us to achieve an improvement in our sales and earnings as more lucrative projects were completed," says CEO Jose Luis Blanco about the results. The Nordex Group confirmed its outlook and continues to expect an increase in revenues to between EUR 5.6 and 6.1 billion in 2023, compared to EUR 4.5 billion last year, and an EBITDA margin between -2% and +3%, compared to -1.5% in 2022.
What makes wind energy so exciting for investors: The European Commission launched a public consultation on renewable energy permits in January 2022 to accelerate progress towards the target of 40% renewable energy by 2030. According to a recently published report by Kings Research, the global wind energy market size reached USD 112.23 billion in 2022 and is expected to reach USD 278.43 billion by 2030, growing at a CAGR of 13.67% from 2023 to 2030. renewableenergymagazine.com/wind/global-wind-power-market-to-record-robust-20231114
Solid investments in classic precious metals and the growth sector of wind energy can provide good portfolio diversification
The run on the latest forms of energy continues. Energy group RWE and Hyundai Engineering & Construction, a subsidiary of the prestigious Hyundai Motor Group from Korea, have signed a Memorandum of Understanding (MoU) to cooperate in the fields of offshore wind and green hydrogen. Both companies aim to accelerate the energy transition in Korea by promoting offshore wind while contributing to the growth of the hydrogen economy.
This is in line with the country's net-zero target by 2050 and the government's plans to increase renewable energy capacity to 108.3 GW by 2036, of which 34.1 GW is dedicated to wind energy, including 24 GW for offshore wind. It is important to note that South Korea is surrounded by sea. The partnership also aims to explore business opportunities globally in the offshore wind sector.
RWE's third-quarter results from Q3/23 are also impressive. Thanks to good earnings from international power generation, a robust Supply & Trading business, and expansion in renewables, adjusted EBITDA reached EUR 6.2 billion. Adjusted net income amounted to EUR 3.4 billion. In the first nine months of 2023, more than EUR 10 billion was invested in acquisitions and projects in the renewable energy sector. Currently, 100 projects with a total capacity of 7.8 GW are under construction in ten countries.
Gold is and remains a safe haven in uncertain times with geopolitical tensions and should be integrated into well-diversified portfolios for balance. Taking a closer look, Nordex has had a successful business year. However, attentive investors who scrutinize Siemens Energy are aware of potential challenges. In such cases, it can be helpful to take a more meta approach and invest in an energy company like RWE, which is responsible for establishing entire offshore wind parks. With Desert Gold in Mali, West Africa is also suitable for long-term strategies, especially as the young, digitally connected generation there can decide the country's future. With its countless natural resources, Mali has excellent prospects for international engagement. Those who prefer a local approach should look closer at Nordex, while those who think globally are in good hands with RWE.
Conflict of interest
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