September 17th, 2024 | 07:30 CEST
FuelCell Energy, Globex Mining, K92 Mining – The latecomers are catching up
Once again, the price of gold has reached a new all-time high as the likelihood increases that the Federal Reserve will implement larger interest rate cuts this week. Experts anticipate a range of between 25 and 50 basis points. Although the base price is rushing from high to high, smaller gold producers and exploration companies are lagging in performance. However, if the uptrend continues, this gap should close quickly, as history has repeatedly shown.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
FUELCELL ENERGY DL-_0001 | US35952H6018 , GLOBEX MINING ENTPRS INC. | CA3799005093 , K92 MINING INC | CA4991131083
Table of contents:
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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K92 Mining – Rebound opportunity after production stop
While top producers such as Barrick or Newmont are already booming but clearly underperforming compared to the gold price, smaller gold producers and second-tier exploration companies still offer attractive entry opportunities. With the Canadian producer K92, which is exploring an outstanding property in the form of the Kainantu mine in Papua New Guinea, there is still plenty of potential at the current price level of CAD 8.07. The mine is also rich in other metals, such as copper and silver.
Recently, a temporary shutdown at the Kainantu mine led to increased costs for K92 Mining. Despite these challenges, the Company is optimistic about the future. K92 Mining plans to produce between 120,000 and 140,000 ounces of gold equivalent in 2024. A significant increase in production capacity is planned in the following years. Two planned expansion phases are expected to increase production to 470,000 ounces of gold equivalent annually. K92 Mining has recently secured financing for these expansion phases.
Papua New Guinea is generally regarded as the El Dorado of gold producers. In addition to Freeport-McMoRan's Grasberg mine, Harmony Gold's Hidden Valley mine and Barrick Gold's Porgera mine are among the highest-grade mines in the world.
Globex Mining – New asset discovered
Jack Stoch, who has been managing the resource incubator Globex Mining since the 1980s, must be extremely satisfied with the composition of his portfolio due to the new highs in the gold price. Of the total of 252 holdings, 126 projects include the precious metals gold, silver, platinum or palladium, which should increase the intrinsic value of these positions.
In addition, Globex Mining owns 125 projects for base metals, rare earths, industrial minerals, and specialty metals. The debt-free company generates cash flow with a portfolio of over CAD 25 million in cash and marketable securities by offering 118 projects to project partners who make regular license payments.
A new asset in its broadly diversified portfolio could emerge at its Guigues silicate property near St-Bruno-de-Guigues in Quebec. This was originally acquired for its potential silica production capabilities and was intended to support the Company's diverse portfolio of advanced silica projects.
However, recent hydrogen exploration activities by Quebec Innovative Materials Corp. and the Institut National de la Recherche Scientifique (INRS) in the area have revealed significant hydrogen concentrations. The most recent announcement, dated September 4, 2024, highlights the discovery of hydrogen at concentrations above 1,000 parts per million (ppm), which is well above the instrumental detection limit. With Globex's property located centrally in this emerging hydrogen exploration area, Globex is well-positioned to benefit from these exciting advances.
FuelCell Energy – Better than expected
In contrast to the gold price, the hydrogen sector has been down for months on the stock market. After the hype at the beginning of the new decade, companies like FuelCell Energy lost over 98% of their market capitalization. Due to the promising opportunities regarding the energy transition, this offers long-term opportunities for a price multiple, coupled, of course, with increased risk.
The industry received a tailwind last week from the debate between the two US presidential candidates, Kamala Harris and Donald Trump. Not only did the supporter of renewable energies win the debate, but former and perhaps future president Trump also made a positive impression by suddenly coming out as a fan of alternative energies, contrary to his previous stance.
There is potential for a rebound at FuelCell Energy. In the third quarter of its fiscal year, the US fuel cell manufacturer posted lower sales and higher losses than in the same quarter of the previous year but was able to exceed analyst forecasts.
FuelCell Energy beat analyst forecasts for its third-quarter figures and received a political tailwind. K92 Mining could outperform the broad market in an ongoing uptrend. Globex Mining benefits from a rising gold price. The intrinsic value of the portfolio should significantly outperform market capitalization.
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