July 6th, 2020 | 08:48 CEST
Desert Gold, Steinhoff, Wirecard - what investors need to know now
Table of contents:
"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources
Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.
Gold stock may continue to rise
The Canadian gold company Desert Gold is exploring its more than 400 km2 projects in western Mali on the border with Senegal. The company is focused on gold and in the past, deposits of the precious metal have been discovered in attractive quantities at several locations. The projects are surrounded by mines from renowned producers such as B2Gold and Barrick Gold. In the current and future drilling programs the goal is to discover reserves of up to six million ounces.
According to S&P Global, Market Intelligence, in 2018, acquisitions in Africa paid more than USD 200 per ounce in the ground. At that time, however, the price of gold was largely trading below USD 1,300.00 and is now traded at around USD 1,800.00. Last week Desert Gold acquired another area for projects. As a result, the value of the company has continued to increase and now stands at around CAD 24 million. As soon as positive information from the current drilling program becomes known, the interest in the share should continue to increase.
Is a solution imminent?
The Steinhoff trading group has hit the headlines due to balance sheet manipulation. A high debt burden of more than 10 billion USD is causing management and shareholders great headaches, which may soon be ended by a settlement. In the past financial year 2019, the company increased its sales by 5% from EUR 11,435 million to EUR 11,992 million. The bottom line EBITDA increased by 3% from EUR 771 million to EUR 791 million. In the first quarter of the current fiscal year, sales increased by 7% from EUR 3,214 million to EUR 3,445 million compared to the same period of the previous year.
In light of the fact that the market value of Steinhoff currently amounts to around EUR 263 million, a solution with the creditors will have an enormous effect on the share price. In the coming weeks, the share will probably keep speculators busy more than ever.
Messengers of information ignored
The Wirecard scandal can be viewed from various perspectives. The suspicion of fraud is unprecedented and seems to be hard to beat in its unscrupulousness. The suspicion is now raised that the management was able for a long period of time to bypass the auditors and falsify the balance sheets. This fact in itself is bad for confidence in the capital market and the industry.
However, the whole affair takes on a completely different quality because for many years, market participants have regularly pointed out that Wirecard's figures and development cannot be correct. The allegation of fraud has been flying around for more than ten years. The responsible institutions, organizations and auditors could have averted a great amount of damage if the persons who sent the information had not been ignored or punished, but rather if the controlling institutions had carefully examined the facts of the case. Now the "cat and mouse game" is over - game over. Sorry, no bonus.
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.
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.