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March 1st, 2022 | 12:25 CET

Gazprom, BP, Barrick Gold, Ximen Mining - Putin's Ukraine conflict boosts gold and silver!

  • Gold
Photo credits: pixabay.com

Over the weekend, the buzzword "mobilization of nuclear weapons" was heard in the media. In the ears of investors, the loud saber-rattling sounded like the starting signal for a gold and silver rally. Events then rolled over in sequence: Russian accounts were frozen, the SWIFT system was disconnected, and there were likely payment difficulties at Sberbank. The sponsorship contract with Gazprom was terminated by Schalke 04 without notice. In this country, people are wondering what medium-term effects the Russian crisis will have on society, the relationship with Russia in general, and the economy. In this context, we are watching a few interesting stocks.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: BARRICK GOLD CORP. | CA0679011084 , XIMEN MINING | CA98420B2003 , BP PLC DZ/1 DL-_25 | DE0008618737 , GAZPROM ADR SP./2 RL 5L 5 | US3682872078

Table of contents:


    Gold and silver - Inflationary push and technical strength

    And now, warlike conflicts on top of already strained logistics chains and exorbitant commodity prices. Metals and oil currently know no stopping, and general goods price inflation is making an impressive comeback. Manufacturers refer to the high purchase prices and dramatically adjust their sales lists. The North Sea variety Brent rose for the first time since 2008 again over the USD 100 mark. Interesting constellations are forming in gold and silver, which will lead to follow-up purchases if confirmed. In the case of gold, the USD 1,885 mark and in the case of its smaller brother silver, the USD 24.25 mark were overcome. Now the USD 1,950 mark is in the room; with the smaller silver, it could go with high momentum after overcoming USD 25.50 to USD 28.50.

    Barrick gold - It is over the EUR 20 mark again

    With the beginning of the warlike activities and a firmer gold price, the share of Barrick Gold also experienced a revival. For many months, the price fluctuated between EUR 15 and 18, now peak prices of EUR 21.50 were reached.

    The last quarterly figures of the second largest gold mining company were convincing. The EPS amounted to CAD 0.444 per share, and sales reached CAD 4.20 billion. Analysts surveyed had forecast earnings per share of CAD 0.380 and sales of CAD 4.04 billion for the fourth quarter. The dividend was raised to CAD 0.10. Barrick also announced it would pay an additional performance dividend based on the amount of free cash flow. Finally, the announcement of another share buyback program fueled the share price.

    On a monthly basis, the share is now up just under 20%, which could continue. From 22 analysts, there is not a single sell recommendation, and the middle price goal amounts to a high CAD 33,14. Thus on the current basis, still a 45% upside potential exists. Continue to buy!

    Ximen Mining - New Opportunities in British Columbia

    Ximen Mining Corp. owns a 100% interest in the following three precious metals projects in British Columbia: the Amelia gold mine, the Brett epithermal gold project, and the Treasure Mountain Silver project, which is adjacent to the formerly producing Huldra silver mine. An option agreement is currently in place for the Treasure Mountain Silver project. The option partner is making annual staged cash and share payments and funding the project's development. In addition, claims are also held at the Greenwood mining camp, the Kenville mine and extensive blocks in the Nelson area and near Cranbrook.

    At the flagship Kenville property, Ximen owns the surface and underground rights and all buildings and equipment. It is now hoped to rapidly develop the project into a small underground mine. Preparations to date include construction of the mine camp, including connection to hydroelectric power, completion of engineering works, and permitting for development of a new 1,200-meter deep decline for diamond drilling.

    With the recent financing steps, the treasury is well filled. Ximen aims to manage future financing needs without debt or further dilution. The focus is always on responsible development using sustainable mining and exploration practices and creating ethical and sustainable value. This is what the new investor likes to hear. The share is currently available at CAD 0.195, which values the entire portfolio at CAD 17.5 million. In the rising gold and silver market, the chances for Ximen Mining are thus quite good.

    Gazprom and BP - Nord Stream 2 and Rosneft hit the headlines

    In the current crisis environment, there are two areas of interest. First, investors should take a closer look at Russian blue chips such as Gazprom, Rosneft and Tatneft. Gazprom will have to forego certification of Nord Stream 2 and will lose its soccer club Schalke 04 as an advertising space. Overall, this will probably weigh more heavily on the European business, but Gazprom is well-positioned as an international oil and gas producer.

    Although Germany wants to become less dependent on Russian gas and the approval process for Nord Stream 2 is on hold, Russia says it continues to pump natural gas to Europe through transit pipelines in Ukraine. The utilization of the pipeline remains unchanged at a high level, the news agency Interfax reported yesterday, citing data from the Russian state-owned company Gazprom. According to the data, 105.8 million cubic meters of gas were delivered to Europe at the beginning of the week. The price of the Gazprom share lost 35% at times and was only able to stabilize with difficulty at EUR 3.30. The daily low was a low of EUR 2.80. Speculative investors need to know that the US can stop trading Gazprom ADRs at any time.

    British oil and gas company BP is divesting its Rosneft stake. BP has held a 19.75% stake in Rosneft since 2013. The exit also marks the retirement of BP CEO Bernard Looney and his predecessor Bob Dudley as members of Rosneft's board of directors. According to British media reports, BP gave in to political pressure from the government in London with this action. Many companies are positioning themselves more and more clearly against Vladimir Putin's approach.

    As an investor, one is subject to political decisions, even if they probably make no long-term economic sense. BP itself reports that its cooperation with Rosneft has always worked well. BP is thus losing its geographic diversification in the resource-rich East. What will happen to the 20% share has not yet been communicated. However, the issue is likely to have repercussions for BP. Good advice is now expensive!


    Besides defense and oil companies, gold and silver stocks also fit into a hedging strategy to the crisis. Barrick can show good figures and a nice chart breakout, at BP and Gazprom special effects press on the prices. Until recently, the balance sheets of both companies were in excellent shape. There is now enough money available at the gold explorer Ximen Mining after the financing to roll out the mine investment strategy accordingly.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



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