21. December 2020 | 08:39 CET
Everfuel, Triumph Gold, Varta - This will be important!
The final weeks of the unique 2020 stock market year promise further excitement. The DAX is close to its all-time high of 13,808 points. If it breaks the mark, investors are likely to party, albeit at a distance, until the end of the year. Gold also resumed in the direction of the all-time high. After the strong support at USD 1,800 held, analysts see highs again for the precious yellow metal as early as the first quarter of 2021.
time to read: 3 minutes by Stefan Feulner
Owners of gold mining stocks have suffered heavy price losses since August when the gold price correction began. Now, most stocks seem to have formed a bottom. However, if the gold price continues its positive trend, mines, especially those in the second tier, could quickly return to their old price levels. The mineral exploration Company Triumph Gold has been hit hard. The highest price was in the summer at CAD 0.48. Currently, the Canadians are quoted at CAD 0.19, which means a current stock market value of only EUR 20.0 million. But at the same time, Triumph Gold is very well positioned.
The 100% owned Freegold Mining project in Yukon has enormous potential. The site, which has an excellent infrastructure, is home to several promising mineral deposits. Thus, the "Revenue" mine has copper-gold-moblydän-silver, the mine "Nucleus" has gold and at "Tinta Hill" one finds many differentiated metals. The drilling program for the full year 2021 has already been secured. Currently, Triumph Gold shows a cash balance of CAD 6.0 million. Industry giants also see the great potential of the explorer. Newmont Mining holds a 12.8% stake and the Zijn Mining Fund 9.8%.
Market reacts calmly
Battery manufacturer Varta was the victim of a major insider transaction at the end of last week. VGG GmbH, to which Supervisory Board Chairman Michael Tojner has a close relationship, sold securities with an equivalent value of EUR 44.0 million at a share price of EUR 110.00. VGG is the main shareholder with most recently just under 57 percent. Measured against the market capitalization of EUR 4.39 billion, the sale then looks relatively small. In any case, the sale did not have a negative impact on the price of the M-DAX Company.
The share also reacted without any major price jumps to the announcement of the distribution of a significant dividend. For weeks, the chart has remained directionless below the resistance line at EUR 115.00 and formed a triangle formation. Should the EUR 115.00 mark be significantly broken in the next few days, the consolidation of the last few weeks would be over, and the triangle formation would be bullishly resolved. The next price target would be first the November high at EUR 125.10 and then the all-time high of September at EUR 138.70. On the downside, a break of the formation at EUR 105.0 and a breach of the critical resistance at EUR 100.0 would be fatal. It would bring more short sellers onto the scene, ones who had already used the Varta share as an underlying in the past.
Nel Asa likes this!
The mother is pleased. With just under 17%, the Norwegian hydrogen specialist Nel Asa still has a stake in Everfuel A/S. Now the Danes are waiting with very positive news. As already reported at the end of November, Everfuel will take over the operation and expansion of hydrogen infrastructures and filling stations in Norway. Due to this, Nel Asa gave a majority stake in its current 100% subsidiary H2 Fuel Norway AS to Everfuel. Now H2 Fuel Norway has been awarded a contract by the Climate Office of the City of Oslo in a public tender to lease a plot of land in Kjelsrud where a hydrogen filling station will be built.
Another order in Denmark
Everfuel is also scoring points on its home market where a memorandum of understanding has been signed with Green Hydrogen Hub Denmark. The hub is already working with Eurowind Energy, Corre Energy and GasStorage Denmark. The goal is to build a 350 MW electrolysis plant, a 200,000 MWh hydrogen storage facility and another energy storage facility. The plant is to be built between the cities of Vilborg and Hobro. An exciting project for the still young Company. However, sales and earnings are also urgently needed if the hyped stock market valuation of over EUR 530 million is to be justified. Caution is advised for private investors. The pure free float of Everfuel is just 5%.