July 19th, 2024 | 07:00 CEST
Globex Mining, Barrick Gold, Amazon - Gold miners and data collectors: On the hunt for valuable resources
Gold has always been a safe haven for minimizing risk in a portfolio. The long-established exploration company Globex Mining boasts over 200 properties with various valuable metals in its portfolio. Recently, Globex acquired additional gold fields through a swap deal. Shareholders benefit from the ingenious strategy of preserving the value of the Company's shares - without dilution. The prospects for top dog Barrick Gold are also excellent. Analysts are also confident about Barrick's growth thanks to increased production and a further rise in the gold price. For Amazon and AWS, however, data is the new gold. Smart developers are the most valuable resource as an investment in the future. With a global AI tour in strategically important countries such as India, Brazil, the UK, and France, the tech giant is attracting talent and promoting developments in artificial intelligence. Who is the best hunter of these three candidates and offers the highest added value for investors?
time to read: 5 minutes
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Author:
Juliane Zielonka
ISIN:
GLOBEX MINING ENTPRS INC. | CA3799005093 , BARRICK GOLD CORP. | CA0679011084 , AMAZON.COM INC. DL-_01 | US0231351067
Table of contents:
"[...] We can make a big increase in value with little capital. [...]" David Mason, Managing Director, CEO, NewPeak Metals Ltd.
Author
Juliane Zielonka
Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.
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Globex Mining secures high-potential gold projects: Rising gold prices promise economic upturn
Globex Mining is an innovative multi-asset exploration company from Canada. Founded in 1949 as Lyndhurst Mining Co. Ltd., the Company has extensive experience in the mining business. With over 200 properties in Canada and the US, including resources, reserves, and promising exploration targets, Globex pursues an ingenious business strategy: the Company grants options on its properties in exchange for cash and shares, while retaining royalties on future production. This approach minimizes dilution risk for shareholders, and option partners assume the exploration risk, allowing Globex to conserve its cash reserves while profiting from successful exploration. This strategy has allowed the Company to grow successfully for decades with minimal dilution.
Globex has now secured two significant gold projects in the Abitibi West region of Quebec, Canada, through a strategic transaction with IAMGOLD Corporation. The Company is acquiring the former Eldrich Gold Mine northwest of Rouyn-Noranda and the Porcupine West Gold property west of Duparquet.
In return, Globex will transfer its Rich Lake (base metals) and Lac à l'Eau Jaune (gold) properties to IAMGOLD. Both companies will each retain a 1% net smelter return royalty on the exchanged properties, bringing Globex's total royalty portfolio to 105.
The Eldrich Gold mine, consisting of 8 claims covering 235.55 ha, produced an impressive 100,679 oz. of gold between 1955 and 1962. Given the increased gold price, Globex sees significant exploration and economic potential in the mine. For investors, the Company itself seems like a gold mine thanks to its highly diversified portfolio.
The Porcupine West property covers 89 claims totaling 4,711.27 ha and extends for 14 km along the gold-bearing Porcupine-Destor fault. Historical drilling and geophysical surveys indicate multiple mineralized zones.
This swap, with no cash or share issuance, demonstrates the Globex founders' excellent ability to expand the Company's portfolio through skillful negotiations, strengthening its position for future growth in the Quebec Gold Belt.
Gold giant soars: Barrick reports production increase and share price reaches all-time high
The share price of industry leader Barrick Gold climbed to a new 52-week high of USD 19.45 in the middle of this week. Pushed by positive production figures and an optimistic outlook for 2024, the Company reported preliminary gold production of 948,000 oz. and sales of 956,000 oz. for the second quarter, a significant increase over the previous quarter. The production increases were achieved, in particular through improved performance at the Turquoise Ridge, Porgera, Tongon, North Mara, and Kibali mines. Barrick also benefited from an average gold price of USD 2,338/oz in the second quarter.
Despite slight cost increases of 0 to 2% compared to the first quarter, the Company plans to reduce costs in the second half of the year. For the full year 2024, Barrick forecasts a continuous increase in production each quarter, focusing on the second half of the year. The positive development is also reflected in the analyst ratings. With an average price target of USD 22.20, experts see further upside potential for Barrick shares.
Investors are optimistic due to the combination of rising production, robust gold prices, and the focus on cost management. The Company will publish detailed results for the second quarter of 2024 on August 12 before the stock market opens. However, unlike Globex Mining, this top dog is far from being as broad and stable.
Amazon Web Services launches global AI innovation tour for startups and developers
Amazon Web Services (AWS), a subsidiary of Amazon, is going on a recruiting tour for startups and developers with the "AWS GenAI Lofts". This tour can bring AWS new customers in innovative industries and, incidentally, the right developers to poach.
The initiative brings collaborative pop-up spaces to valuable AI hubs around the world, providing a platform for developers, startups, and AI enthusiasts to learn, develop and network. The tour kicks off on July 29, 2024, in Bengaluru, India, and will then stop in San Francisco for eight weeks before moving on to São Paulo, Brazil, London, UK, and Paris, France. AWS expects thousands of visitors worldwide, building on its recently announced commitment press.aboutamazon.com/2024/6/aws-announces-230-million-commitment-for-generative-ai-startups of USD 230 million to accelerate the development of generative AI applications by startups.
AWS partners such as Anthropic, Cerebral Valley, and Weights & Biases will play a central role in the program. Visitors will have the opportunity to experience demonstrations of leading generative AI models, including Anthropic's Claude models, which are available on Amazon Bedrock. This push by AWS will allow the Company to scout young talent locally in countries that are strategically valuable to the Company. This global tour could help drive Amazon Web Services' growth in the promising field of generative AI and further strengthen its international presence. As the saying goes, "Data is the new gold".
Globex Mining is a strategically savvy player in the mining sector. With over 200 properties and an intelligently thought-out option strategy, the Company minimizes shareholder risks. The recent acquisition of two gold projects in Quebec strengthens its position in the gold market. The diversified portfolio provides additional security in volatile markets. Barrick Gold secures its position as market leader in the gold sector. With an increase in production to 948,000 oz. in Q2/24 and a record share price of USD 19.45, the Company is showing strong growth. Barrick is benefiting from high gold prices and efficient mine production. Despite slight cost increases, management plans cost reductions in the second half of the year. Barrick remains a solid choice for gold investors. Amazon Web Services is strategically positioning itself in the booming AI market and is on the hunt for the best minds in the war of talent. With the global "Gen AI Lofts" tour, the Company is targeting talent acquisition and customer retention in key markets such as India, USA, Brazil, UK, and France. All three companies are characterized by strategically smart growth strategies. Globex stands out for its value creation for shareholders and its licensing business to minimize risk. Barrick is solidly expanding its business, but is aiming to cut costs. Amazon Web Services can attract young companies and find talent. Globex appears to be slightly better positioned in physical gold, while Amazon Web Services is ahead in data gold and generates real added value for investors with a long-term strategy for the future.
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