January 10th, 2025 | 07:00 CET
Gold and security: Barrick, Desert Gold and Rheinmetall are profiting from geopolitical change
The global security landscape is changing rapidly, whether in the Middle East, on NATO borders, or in Asia. Savvy investors recognize the links between demand for commodities such as gold, technology and defense. One of the major gold producers, Barrick Gold, is receiving positive analyst evaluations and appears to be on a growth trajectory for 2025. The same is true for Desert Gold. The exploration and resource development company has discovered promising new gold deposits in Mali, West Africa, and has also raised the necessary capital for the next development phase. Meanwhile, Rheinmetall is strengthening the medical capabilities of the German armed forces. With state-of-the-art mobile rescue stations, soldiers will have access to care and support anytime. While gold producers and explorers are tapping into valuable precious metal resources, Rheinmetall provides the technology for a secure future. There is enormous investment potential for investors.
time to read: 4 minutes
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Author:
Juliane Zielonka
ISIN:
BARRICK GOLD CORP. | CA0679011084 , DESERT GOLD VENTURES | CA25039N4084 , RHEINMETALL AG | DE0007030009
Table of contents:
"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
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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Barrick Gold: Analysts expect higher profits
The gold producer Barrick Gold can look forward to a positive outlook, as sentiment among analysts is largely optimistic. 8 out of 12 experts recommend the share as a "Buy", while 4 rate the stock as "Neutral". The average target price is set at USD 24.82 per share.
The share is currently trading at USD 15.92. A dividend of USD 0.40 also pleases investors, which corresponds to a yield of 2.51%. Barrick Gold currently has a particularly strong presence in Nevada, where it operates a joint venture with Newmont Corporation. Barrick Gold owns 61.5% of the Nevada Gold Mines (NGM) project and Newmont 38.5%. As one of the largest gold mining operations worldwide, the two companies employ a combined total of over 7,000 people there, who work in 10 underground and 12 open-cast mines every day.
In view of these dimensions, the analysts at Scotiabank also see further growth for Barrick Gold in the coming years. A profit of USD 1.50 per share is expected for 2025.
In West Africa Mali, Barrick employs 8,000 people at the Loulo-Gounkoto gold mine. Of these, 97% are Malian citizens, who contribute between 5% and 10% to the country's gross domestic product each year through their employment at Barrick. The Malian state owns 20% of the mine; it would like to increase its stake and is threatening to ban the export of the precious metal. Even though there are currently disagreements, Barrick remains open to dialogue and is committed to finding a constructive solution that benefits both sides.
"Barrick remains a reliable partner for Mali and its people, having made a significant contribution to the economic and social development of the country for nearly three decades. We are committed to a dialogue and a mutually acceptable solution that will enable us to secure the future of Loulo-Gounkoto as an important economic factor for Mali," says Barrick CEO Bristow.
Desert Gold: Double success with financing and gold discoveries
The Canadian exploration and resource development company Desert Gold Ventures has raised a total of CAD 1.26 million in new funds through a special warrant program. The program has already been approved by the TSX Venture Exchange. A total of 15.7 million warrants have been exercised by investors at a price of CAD 0.08 per share as part of the program.
The new funds will primarily be used to develop the West Mali SMSZ gold project. As an incentive, the investors have received additional warrants that can be converted into shares at the same price of CAD 0.08 for three years.
The latest drilling results from the SMSZ gold project are cause for optimism. The drill results show significant gold grades in several zones: at the Barani East Zone, 3.54 g/t gold over 10.15 m was found. At the Gourbassi West Zone, the figure is 6.62 g/t gold over 12 m. What makes these results so remarkable is the fact that the measured and indicated resources measured to date in these zones average 1.41 g/t.
CEO Jared Scharf is delighted with the results: "The metallurgical drilling has surprised us with several unexpected zone extensions and higher grades than expected in some parts of the Barani East Zone. The potential addition of a new resource at Gourbassi West North could further enhance the project's economics as we seek to advance the PEA as soon as possible." A PEA is a preliminary economic assessment. For the next steps, Desert Gold has now raised the necessary capital. In return, investors have excellent opportunities to maximize profits.
Rheinmetall supplies new mobile rescue stations to the German Armed Forces
In an emergency, a functional and modern medical first response system can mean the difference between life and death for an army. That is why the German Armed Forces are upgrading their medical services with new mobile rescue stations from Rheinmetall. The defense contractor will deliver 120 of these medical stations by the end of the new year. The order was placed by the Federal Office of Bundeswehr Equipment, and the order is worth tens of millions of euros.
Rheinmetall will carry out the delivery in several phases. In phase 1, 16 systems will be delivered, 10 of which are explicitly armored against enemy fire, while 6 units are without further armor. The order also includes an expansion to 104 systems and the training of medical personnel.
The advantage of the new rescue stations is that they are easy to assemble and disassemble, meaning that they can be deployed directly where they are urgently needed. Even extreme weather and climate zones cannot harm the rescue stations. They have a self-sufficient power supply, air conditioning, and a special container with the latest medical equipment for emergency operations. The German Armed Forces is thus setting a valuable example for the emergency care of its soldiers, thereby increasing security in times of crisis.
Barrick Gold can look forward to positive analyst forecasts with a target price of USD 24.82. Valuable gold projects are located in both Nevada and Mali and will become even more relevant in 2025. Desert Gold has two positive announcements: Through a warrant program, the Company has secured CAD 1.26 million for further work on the SMSZ gold project in Mali, West Africa. The drilling results are convincing, with a significantly higher gold content that exceeds the previous average of 1.41 g/t gold. Rheinmetall is taking care of the well-being of German soldiers with its new mobile rescue stations. The order from the Federal Office of Bundeswehr Equipment is worth a double-digit million euro budget. This will further strengthen the potential operational capability of the German military. Anyone who understands the connection between the increasing demand for gold as a safe asset and the growing importance of modern defense technology recognizes the potential of companies such as Barrick Gold, Desert Gold, and Rheinmetall in these troubled times.
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