January 13th, 2022 | 10:23 CET
JinkoSolar, Barsele Minerals, Barrick Gold: Where challenges are opportunities
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"[...] We are convinced that we could already leverage significant 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. [...]" Gary Cope, President and CEO, Barsele Minerals
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.
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.
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