22. July 2021 | 13:45 CET
First Majestic Silver, Carnavale Resources, Newmont - Get in early!
Do you want to chase the trend or invest in time before a price jump and then sit back and relax when the price rises? For the second option, an investment in gold stocks is the way to go. We are still some distance from the past year's highs, but there are many indications that precious metal prices will rise in the medium term. We give you three investment ideas on the way. Buy, hold, enjoy.
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ISIN: FIRST MAJESTIC SILVER | CA32076V1031 , CARNAVALE RESOURCES LTD | AU000000CAV5 , NEWMONT CORP. DL 1_60 | US6516391066
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
FIRST MAJESTIC SILVER CORP - Excellent quarterly figures
The Canadians operate several producing silver mines in Mexico. Earlier this year, the stock benefited from short squeeze speculation that sent the stock to CAD 28. Early in the second quarter, First Majestic made a great move, acquiring a gold project for the first time in its history in the absence of attractive silver projects on the market. With the Jerritt Canyon Mine in Nevada, the Canadians acquired a world-class gold project in the US state with a size of 308sqkm and a production in the last 20 years of about 9.7 million ounces of gold.
Now First Majestic published the Q2 figures, which document a very pleasing development. Total production reached 6.4 million silver equivalent ounces in Q2 (consisting of 3.3 million ounces of silver and 46,545 ounces of gold). That represented an increase of 84% over the corresponding period! The production growth was based on the increase in silver equivalent production from the three operating Mexican mines and the inclusion of production from the Jerritt Canyon Mine from April 30, 2021.
The Company is targeting total production in the current fiscal year of 25.7 to 27.5 million silver-equivalent ounces, consisting of 13.0 to 13.8 million ounces of silver and 181,000 to 194,000 ounces of gold. That is approximately 5 million ounces of silver equivalent more than in 2020.
CARNAVALE RESOURCES LIMITED - Many arrows in the quiver
Carnavale Resources Limited is a Western Australia-based mineral exploration company. The Company focuses on acquiring and exploring high-quality and advanced exploration and development projects with prospects for gold, nickel, precious metals, and strategic minerals. In doing so, the Australians pursue increasing value for their shareholders based on the further development of promising projects. The focus here is on keeping costs under control. Carnavale focuses on projects where the earn-in agreement and costs are predominantly based on "value-enhancing drill programs" as part of the equity earn-in phase and with no high upfront costs.
Recently, Carnavale Resources announced it had identified a high-grade mineralized zone extending 550 meters at McTavish East. The zone is located within the Kookynie Gold Project in Western Australia, where Carnavale has completed the third phase of drilling. McTavish East had high grades of up to 32.5 g/t gold, as did McTavish North, with gold grades of up to 16.3 g/t.
The third round of drilling comprised 135 holes totaling 7,432 meters and was aimed at exploring the potential of the Champion South deposit and following up on the solid gold anomalies identified in the first two rounds of aircore drilling. In the future, Carnavale plans to conduct reverse circulation deep drilling to develop the high-grade gold potential at depth. Significantly, the latest drilling has confirmed the anomalies at the McTavish East and McTavish North properties and even extended them. The share price hardly reacted to these new developments. Currently, the Company's market capitalization is AUD 18 million.
NEWMONT CORPORATION - 20% more share price potential
For those who only flirt with the market leaders and the most prominent players in an industry, Newmont is the first choice when it comes to gold. Newmont is the world's leading gold producer. Based in Denver, in the US state of Colorado, it is also a major producer of copper, silver, zinc and lead. Newmont's assets and projects span North America, South America, Australia and Africa. The corporation has a long history. In 1921 the Company was founded; four years later, the IPO took place. Today, the Company is worth USD 49 billion. Analysts like the stock. On average, the experts give the title an upside potential of 20%.
90% of the achieved return is determined by the asset class an investor invests in - i.e. stocks, bonds, real estate, etc. At least that is what empirical capital market research says. One speaks of the so-called asset allocation. Should investors share a higher gold price scenario in the medium term, given the flood of money and the increasing likelihood of a stock market crash over time, the stocks discussed offer good investment ideas. Carnavale certainly offers the greatest opportunities but also carries the greatest risk given the Company's still early stage.