Close menu




April 8th, 2024 | 06:45 CEST

Geopolitical uncertainties - Sibanye Stillwater, Saturn Oil + Gas and Barrick Gold benefit

  • Mining
  • Oil
  • Gold
  • Silver
Photo credits: pixabay.com

In addition to the stock markets, which reached new highs last week, the direction of precious metals and oil is also clearly pointing upward. While gold also reached a new all-time high, silver has significant catch-up potential compared to its big brother. In the case of black gold, the current uncertain geopolitical situation could cause oil prices to break through the USD 100 per barrel barrier once again.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: SIBANYE STILLWATER LTD. | ZAE000259701 , Saturn Oil + Gas Inc. | CA80412L8832 , BARRICK GOLD CORP. | CA0679011084

Table of contents:


    Saturn Oil & Gas - New high for the year

    Geopolitical tensions are once again a key factor in the price trend on the oil markets. Concerns about an escalation of conflicts in the Middle East have intensified significantly following the attack on the Iranian embassy in Damascus. The world is eagerly awaiting Iran's response, which blames Israel for the incident, leading to increasing unrest in the financial markets. One of the main beneficiaries, alongside the crisis currency gold, is oil. Brent oil is approaching the magical sound barrier of USD 100 per barrel, just like WTI, which would result in a further increase in momentum.

    In addition to the base prices, shares in oil producers are benefiting enormously. For example, Saturn Oil & Gas shares have already posted a performance of 25% since the beginning of the year and, at CAD 2.75, have reached their highest level since October of last year. The Canadian share is only marginally behind the next resistance level. Overcoming the CAD 2.79 mark would generate further upside potential to the CAD 3.06 range.

    Fundamentally, the fast-growing energy company was able to announce a final agreement on the sale of its non-core concession area in North Alberta for a volume of CAD 27 million. Saturn Oil & Gas continues to streamline its portfolio to increase operating efficiency and reduce net debt, strengthening the balance sheet.

    Source: Refinitiv Eikon, as of 05.04.2024

    Barrick Gold, Newmont, with high catch-up potential

    The gold price is rushing from one record high to the next. After sustainably overcoming the USD 2,145 mark, the old interim high from December 2023, the gold producers around Barrick, Newmont and Co. began to catch up with the advance in the base price. As a reminder: Barrick Gold, the world's second-largest gold producer, is still down more than 70% on its 2010 high, while the leader, Newmont, has lost a whopping 54% since its all-time high in April 2022.

    Chairman John Thornton confirmed in the Company's recently published Information Circular 2024 that Barrick Gold remains on a good strategic path. "Barrick Gold is guided by a long-term, forward-looking strategy that is precisely aligned with the demands and expectations of a rapidly changing world. It aims not only to ensure the Company's sustained profitability but also to put sustainability at the core of its operations in every respect. Barrick's pioneering partnership philosophy, a key element of its commitment to sustainability, has already transformed the once derelict Tanzanian mines into a complex with Tier 1 potential, restored the Reko-Diq project in Pakistan, and is now developing it into one of the largest copper-gold producers in the world. After three years of negotiations, an agreement has been reached to reopen the Porgera gold mine in Papua New Guinea, where mining and processing have resumed and will ramp up over the next two quarters," he says.

    Sibanye Stillwater - Great opportunities after the shock

    Sibanye Stillwater is a player that came under huge pressure following the publication of its figures a few weeks ago but has considerable potential. One advantage of the South African mining company is the diversification of its portfolio. In addition to the mining of precious metals of the platinum group, such as platinum, palladium, ruthenium and rhodium, as well as gold, the production of critical metals, such as nickel, chromium, and copper, is also being accelerated.

    In its latest figures, the Company reported a loss of over USD 2 billion and announced the suspension of dividend payments. However, the loss did not result from the operating cash flow, but rather from a special write-down.

    One catalyst for Sibanye is, of course, the sharp rise in the price of gold. As a result, the Company's South African gold business, which has been heavily loss-making in recent years, could see profits bubble up again. The market capitalization currently stands at USD 3.74 billion. In contrast, the Company has reserves and resources of over 300 million ounces of platinum metals and 60 million ounces of gold. Sibanye Stillwater could, therefore, outperform the stock market if the market environment remains positive.


    The uncertain geopolitical situation is fueling both gold and silver, as well as the oil market. Saturn Oil could generate a further buy signal by overcoming resistance at CAD 2.79. Barrick Gold and Newmont should continue to close the gap to the base price in a positive environment. Sibanye Stillwater has gigantic reserves and should perform with leverage on the gold market.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    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.

    About the author



    Related comments:

    Commented by Juliane Zielonka on May 17th, 2024 | 07:00 CEST

    Almonty, Rheinmetall, Super Micro Computer - Commodity rally for defense and cloud

    • Mining
    • Tungsten
    • AI
    • Defense

    AI and defense stocks are setting the stock market on fire. Investors worldwide seem to have acquired a taste for artificial intelligence and defense. Wall Street is expecting a four-digit price target for Super Micro Computer soon. Rheinmetall is also enjoying full order books. Since the takeover of a Spanish ammunition manufacturer, production has also increased in this segment. Meanwhile, tensions between the largest economies, the USA and China, are growing enormously, which is reason enough for investors to take a look at Almonty Industries. The tungsten producer is on course for growth thanks to the restart of a mine in South Korea. Tungsten is rising in value as the increase in AI, and armaments are directly boosting demand for the rare earth metal. Who will win the stock market race?

    Read

    Commented by André Will-Laudien on May 16th, 2024 | 07:00 CEST

    Attention: Here we go! Hydrogen and uranium on the rise: Plug Power, Nel ASA, Kraken Energy and Siemens Energy in focus

    • Mining
    • Uranium
    • Hydrogen
    • renewableenergies
    • Energy

    It has finally happened! After months of sell-offs in hydrogen shares, there was a sigh of relief across the sector the day before yesterday. The reason: industry leader Plug Power received a government guarantee of USD 1.66 billion as backing for the construction of six-megawatt sites nationwide to create an initial hydrogen infrastructure. The Department of Energy (DOE) is thus demonstrating that the US is serious about investing in alternative energies. The decision boosted the entire energy sector, with uranium also continuing its recent upward trend. Where do the opportunities lie for investors?

    Read

    Commented by Juliane Zielonka on May 16th, 2024 | 06:45 CEST

    Saturn Oil + Gas, RWE, thyssenkrupp - Full speed ahead in energy and heavy industry

    • Mining
    • Oil
    • Gas
    • renewableenergies

    The oil and gas industry has evolved significantly thanks to technological developments. The Canadian energy company Saturn Oil & Gas has already completed four successful wells in southeast Missouri, USA, in the first quarter of 2024, with promising results. Further strategic investments, such as the acquisition of assets and financing commitments, strengthen Saturn Oil & Gas as an industry leader. RWE reports positive quarterly results. Despite lower earnings in the 'Flexible Generation' segment, the Company is optimistic due to the expansion of renewable energy projects. Thyssenkrupp reported stable results in the second quarter, although order intake and sales were down compared to the previous year. CEO Miguel López emphasizes the progress made in Marine Systems. Despite challenges, thyssenkrupp is sticking to its forecasts. Where is an investment worthwhile?

    Read