30. September 2021 | 13:54 CET
Good News from Evergrande, Plug Power and Triumph Gold
Volatility has increased sharply on the stock markets in recent days. The overall mood is negative. Technology stocks, in particular, are suffering from rising interest rates. In China, energy shortages due to a lack of coal are slowing economic growth, and worries surrounding Evergrande's insolvency continue. The insolvent real estate group has sent a sign of life and gives investors hope. Investors also have renewed hope in hydrogen stocks like Plug Power. For the purchase of gold shares, one needs courage at present. However, this could soon be rewarded in the case of Triumph Gold, for example.
time to read:
ISIN: CHINA EVERGRANDE GROUP | KYG2119W1069 , PLUG POWER INC. DL-_01 | US72919P2020 , TRIUMPH GOLD CORP. | CA8968121043
"[...] The transaction offers benefits to all parties: Shareholders now have three promising projects in their portfolio. [...]" Bradley Rourke, President, CEO and Director, Scottie Resources Corp.
Triumph Gold: Indication of good drilling results?
When it gets stormy on the stock markets, then the hour of gold strikes. Indeed. After the high in the summer of 2020 at over USD 2,050, the air is out of the gold price. Currently, an ounce can be bought for around USD 1,750. Also, from a chart-technical point of view, there is nothing to be said about an increase. But this is precisely the environment for anti-cyclical investing. In addition to the standard stocks such as Barrick Gold and Newmont, it is worth looking at explorers such as Triumph Gold Corp. The market value of the Canadian gold explorer is currently below EUR 20 million. Like the entire industry, the Triumph share has corrected significantly and is trading almost 50% below its high for the year. At the same time, important drill results are pending.
Triumph is currently focusing on the Freegold Mountain project in the mining-friendly Yukon region. The area covers 200 sq km and is located in the Dawson Range copper-gold belt. Recently, the Company announced the completion of a 19-hole, 6,615m diamond drilling program on the Freegold Mountain property in the Nucleus and Revenue areas. In advance of the campaign, the Company had completed an extensive study in conjunction with Minerva Intelligence. The analysis, conducted with the assistance of artificial intelligence, indicated new gold and copper mineralization. Final drill results should be available no later than October.
A recent personnel development indicates that the drilling is successful. Thus, Brian May is Triumph Gold's new president. He joined Triumph Gold in November 2020 as a senior geoscientist and is an integral part of the exploration team at the Freegold Mountain project. If there were problems there, he would be unlikely to be promoted. So the coming weeks should be exciting at Triumph Gold.
Evergrande sells silverware
China Evergrande has also been exciting for weeks, but not to the delight of investors. The insolvent real estate group is struggling to solve its problems without triggering a quake like the Lehman bankruptcy. There has now been an interim success along this path. Evergrande has sold its stake in Shengjing Bank. For the 19.93% stake, the ailing group will receive around USD 1.5 billion. The buyer is the state-owned asset Company Shenyang Shengjing. On the back of the news, Evergrande shares rose by over 10% on Wednesday. However, this should only mean a breather. After all, the Chinese group is more than USD 300 billion in debt to customers, banks and investors. The Chinese government has recently indicated that it will not rescue Evergrande but will support an orderly liquidation.
Plug Power builds in the USA
There is positive news from Plug Power. In California, the Company plans to build an innovative plant to produce green hydrogen from wastewater. After completion in 2023, the plant in Fresno County is to be the largest hydrogen production facility on the US West Coast. It will then supply customers "from San Diego to Vancouver" with 30 metric tons of liquid green hydrogen daily while simultaneously processing wastewater from the neighboring city of Mendota. The plant's energy supply is to be ensured by the construction of its solar park with a capacity of 120 MW. The plant is an essential building block on Plug Power's way to offer green hydrogen at competitive prices in the future.
Plug Power is demonstrating that it is one of the most solid and leading hydrogen companies. Evergrande is sending a sign of life that should not be overstated, and Triumph Gold offers itself for anti-cyclical gold investment.