27. October 2021 | 10:23 CET
Deutsche Telekom, Barsele Minerals, Symrise - Positive surprises
The reporting season for the third quarter is in full swing. Positive surprises already outweighed the negative ones last week. As a result, the leading indices in the USA, the Dow Jones and S&P 500, reached new highs, and the DAX is also likely to start its year-end rally with the first target of 16,000 points after breaking through the crucial 15,500 mark. Even outside the quarterly figures, there are important events that should positively affect the respective share prices.
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ISIN: DEUTSCHE TELEKOM ADR 1 | US2515661054 , BARSELE MINERALS | CA0688921083 , SYMRISE AG INH. O.N. | DE000SYM9999
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Gold climbs to USD 1,800
The stock markets are bullish, the largest cryptocurrencies, Bitcoin and Etherum, are rising from high to high. Despite inflation concerns and a looming real estate crisis in China, there still seems to be too much money lying on the side of the road that still wants to enter the market. The precious metals, gold and silver, were also able to free themselves somewhat from their lows. In the gold sector, a spectacular deal is in the offing, which could give wings to the price of the gold mining exploration company Barsele Minerals.
By Oct. 31, 2021, the deadline of a letter of intent expires, according to which Barsele Minerals could acquire 100% of a high-grade project in Sweden from industry giant Agnico Eagle. According to industry insiders, both parties want to reach a favorable deal, with only the Corona pandemic of travel restrictions complicating negotiations. If the ink is not dry on a final agreement by the end of the month, there should be no obstacles to an extension.
The eponymous Barsele project in the northern area of the Scandinavian country covers a size of 47,000 hectares. It stands for a potential of more than 5 million ounces of gold, according to the management of the Belcarra Group, which leads the fortunes at Barsele Minerals. Today, the Canadians own 45% of the project. The majority of 55% is still held by major Agnico Eagle, which has done the significant groundwork in the past, with 160 km of drilling and over 400 holes. The next 24 months envisage further drilling programs over 30,000m, which should then provide a resource estimate of around 3.5 million ounces of gold.
The purchase price of the remaining 55% amounts to USD 45 million. In addition, Barsele Minerals will grant the contractual partner own shares in the volume of 14.9% and 6 million warrants. The transaction is to be financed by a capital increase in addition to the issuance of a convertible bond. To gain access to a more extensive investor base in the US capital market and thus to greater liquidity, the Company announced the start of trading on the OTCQB Venture Market, a segment dedicated to early and development stage companies.
Analysts at RBC valued the Barsele project at USD 375 million years ago, when gold was trading at around USD 1,350 per ounce. That would give significant potential for Barsele Minerals, which has a market capitalization of just EUR 52.21 million.
Telecom in the run-up to the figures
Having reached a new 10-year high in the middle of the year, the signs have been pointing to a correction in Deutsche Telekom's chart for months. Since reaching the high of EUR 18.91, the share price of the Bonn-based Company has been consolidating. Accordingly, an end should first be found at around EUR 16, a prominent support zone. In case of a break, a relapse into the sideways range below EUR 15.50, which has lasted for years, would not be unlikely.
The investment bank Jefferies was optimistic concerning the upcoming quarterly figures. The Brits continue to see Deutsche Telekom as a buy candidate and reiterated the price target of EUR 21.80. Concerning the Group's forecast for the operating result, the analysts are very confident. A significant contribution should come from the cost side in the home market. However, even a weaker result could lead to an increase in the targets.
Jefferies also upgraded the Symrise share to "buy." The price target of EUR 130 was reiterated after the quarterly figures were announced. The reason for the favorable verdict was that internal analysts' estimates were exceeded. The pet food business and the recovery in luxury perfumery were the reasons why the management around CEO Heinz-Jürgen Bertram again revised the forecast of 7% from the summer and now expects organic sales growth of 9% for the full year.
In the first three quarters, the DAX-listed Group generated revenues of almost EUR 2.9 billion, 6.7% more than a year earlier and thus more than expected. "Due to progress in the fight against the Corona pandemic, demand continued to increase significantly," Bertram said, according to the release. "Demand was particularly high for applications associated with more travel or leisure - including, for example, sun care products, fragrances but also beverage and culinary applications."
With the encouraging quarterly figures, stock markets are bullish and climbing to new highs. The gold sector also managed to break free from its lows. Barsele Minerals is on the verge of a landmark deal and could head for higher valuation territory if successfully concluded. Deutsche Telekom is also attractive at current levels.