Close menu




January 13th, 2022 | 10:23 CET

JinkoSolar, Barsele Minerals, Barrick Gold: Where challenges are opportunities

  • Gold
Photo credits: pixabay.com

The road to success is sometimes rocky and characterized by imponderables. Especially on the stock market, unclear situations can be good opportunities in the long run. Sometimes the market doesn't buy a company's long-term plans, or a fundamental situation overshadows what is actually a good investment story. We present three companies where there is currently a bit of sand in the gears and explain whether opportunities can arise.

time to read: 3 minutes | Author: Nico Popp
ISIN: JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , BARSELE MINERALS | CA0688921083 , BARRICK GOLD CORP. | CA0679011084

Table of contents:


    JinkoSolar: Why it is still not doing so well

    JinkoSolar's stock has lost about 26% of its value in the past year. At the same time, measures against climate change are gaining momentum worldwide. Just yesterday, the new Minister of Economics, Robert Habeck, presented his plans for the energy turnaround. Photovoltaic systems and solar plants play an essential role in this. Habeck's appearance seemed very determined. In an interview with the heute journal, the new minister said that he had "no desire" to be a minister in a government that no longer had any confidence in itself for fear of failure and was therefore baking small rolls. "Therefore, full into the risk, and maybe it will succeed, and then we can all be proud of each other," Habeck told the TV-Channel ZDF heute journal.

    When countries like Germany go "full risk," the coffers should ring for companies like JinkoSolar. Actually. But the positive business development and the good market position are currently overshadowed by the concern of international investors about China. There are Omicron cases there again and again. At the same time, Chinese vaccines are not considered very effective against the new variant. China has also recently tightened the reins on corporations, emphasizing that power is still in the party's hands. That has scared off some investors. In the long term, many Chinese stocks should be promising. At present, however, there are still obvious risks.

    Barsele Minerals with exciting constellation

    The market currently also sees risks in the shares of Barsele Minerals. What happened: The Company developed the Barsele Gold Project together with Agnico Eagle in a joint venture. Months ago, Barsele announced its intention to take over the project entirely. The reason: Agnico Eagle is focusing on projects in Canada, and Barsele wants to increase the exploration budget to get started with the gold project. Since both parties could not reach an agreement, the letter of intent was canceled a few months ago. The share price fell as a result. In an interview with news.financial, CEO Gary Cope still expressed in December how optimistic he is despite the new situation: "Both parties thought about a further extension of the deadline. But then we decided against a prolonged state of limbo. We will announce the deal's conclusion as soon as we have reached that conclusion. In concrete terms, nothing has changed for us. We continue to work on taking our promising Barsele project and moving it forward. We are convinced that we could already leverage major potential with a drilling program of around 35,000 meters. However, to finance this, we need a decision. Fortunately, there are already interested parties who can imagine advancing Barsele together with us," says Cope.

    The CEO emphasizes that the value is currently still low and believes that the project will soon show 4 million ounces of gold. Furthermore, the location factors in the legally secure Sweden and the meager energy costs from hydropower would favor the project. The share price has recently risen significantly but is still far from historical highs. Work on the project is currently progressing, and from spring, the Company intends to start with a larger budget. If the necessary funds can be raised by then, the share could face a revaluation.

    Barrick Gold: Boredom reigns here

    The Barrick Gold share is currently far from being revalued. The stock has lost around 14% over the past year and has recently shown only restrained momentum. Although everything is going well at Barrick Gold, the share lacks imagination. In a research piece by researchanalyst.com, the conclusion is positive: "The bottom line is that the current price level of the Barrick share is an attractive entry opportunity for long-term investors, and this for several reasons. First and foremost is the plausible assumption of a rising gold price. The high copper price will also have a margin-increasing effect thanks to the megatrend of electromobility. High earnings and free cash flow can add value to the stock several times over, with a rising net cash position, higher dividends, potential share buybacks and sufficient funds for acquisitions," the website said in November.


    But it seems share buybacks or special dividends no longer excite investors much at Barrick Gold. Only a spectacular acquisition or a new gold price rally could boost the stock. Barrick Gold's gold flagship is dependent on external factors to boost the share price. The team around Barsele Minerals has its luck in its own hands: A new partner or an agreement with Agnico Eagle, and the promising project should soon be re-evaluated.


    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

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Juliane Zielonka on July 19th, 2024 | 07:00 CEST

    Globex Mining, Barrick Gold, Amazon - Gold miners and data collectors: On the hunt for valuable resources

    • Mining
    • Gold
    • Commodities
    • data
    • AI

    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?

    Read

    Commented by Fabian Lorenz on July 16th, 2024 | 07:15 CEST

    Next share price jump? TUI, Aixtron, and Desert Gold

    • Mining
    • Gold
    • Travel
    • Technology

    Is the Aixtron share about to make its next leap? The shock of the profit warning was digested with a rise of over 10%. Three analysts recommend the share as a "Buy". Desert Gold is also ripe for a new rally. After more than doubling in a short space of time at the beginning of the year, it consolidated textbook style. Will it soon jump to a new yearly high? The Company is certainly not expensive, and experts consider a gold price of USD 3,000 possible. Important drilling results are also on the horizon. TUI is currently performing well operationally. The summer season business is booming, and the bankruptcy of a competitor is providing additional momentum. Nevertheless, the share is trending sideways. Could the purchase of an island be the trigger?

    Read

    Commented by André Will-Laudien on July 11th, 2024 | 06:45 CEST

    Mega rally on the cards - 500% plus is likely too low an estimate! Evotec, Desert Gold, Cogia, VCI Global, and Lufthansa

    • Mining
    • Gold
    • Commodities
    • Biotechnology
    • airline

    The stock market keeps rising and rising - this much is revealed by the ever-new highs of prominent indices such as the NASDAQ 100, S&P 500, or the Nikkei index. However, a closer look reveals some inconsistencies. For example, only 6% of all traded stocks are currently reaching new highs, while over 70% of all listed stocks have fallen since the beginning of the year. In short, global liquidity is aggregated in just a few blockbuster stocks, with the rest being left behind. Such bubbles already occurred in 1999, 2007, and 2015, followed by a 25% to 50% correction. When exactly this will happen, no one knows, but the party is likely to continue for a while due to high liquidity. Gold and silver are in the process of forming interesting breakout formations. Now is the time to pick the cherries!

    Read