July 13th, 2021 | 10:42 CEST
JinkoSolar, Barsele Minerals, Newmont: The takeover merry-go-round is spinning
Raw materials are the key to new technology. Whether silver, copper or other metals - many technologies, such as electric cars and solar panels, drive demand for metals. As these technologies triumph, so does the demand for raw materials. Using three stocks as examples, we explain how investors can profit.
time to read: 3 minutes
|
Author:
Nico Popp
ISIN:
JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , BARSELE MINERALS | CA0688921083 , NEWMONT CORP. DL 1_60 | US6516391066
Table of contents:
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Author
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.
Tag cloud
Shares cloud
JinkoSolar: Where will it go from here?
The JinkoSolar share is a real hot potato - in a positive sense! In the past three months alone, the stock has climbed by an impressive 47%. The reason is the great demand for solar modules and the good products of JinkoSolar. The Company scores high on both durability and efficiency. Both are points that are important to potential buyers of solar modules. The third factor is price. Here, too, the world market leader JinkoSolar is perfectly positioned. We remember the price war around solar modules about ten years ago. At that time, more and more German companies slid into bankruptcy. The reason: The Chinese were simply cheaper. At the end of this price war and the concentration of suppliers in Asia, JinkoSolar is the winner.
With demand for solar panels continuing to grow, the Company is perfectly positioned. Despite the recent price gains, the stock still has some room to run. From EUR 55, however, the value could increasingly encounter resistance. Whether JinkoSolar will reach the EUR 74.10 mark from last year again so quickly is questionable. The Company is well-positioned, but the stock is also known for its volatility.
Barsele Minerals: A plan - 18 months to go
Barsele Minerals is another volatile stock. The Company partnered with mining giant Agnico Eagle to develop the Barsele project in Sweden. Barsele holds 45% of the project and Agnico Eagle 55%. A letter of intent now allows the young Company from Canada to take over the entire project. Barsele would have to raise CAD 45 million, and Agnico would have to sign over a 14.9% stake in its shares. In addition, there would be options to buy a further 6 million shares at CAD 1.25 per share. Agnico Eagle believes in the project's success and is convinced that it is better off with Barsele Minerals. The young Company plans to drill 30,000 meters over the next 18 months and upgrade the project to make it easy for Barsele to finance the complete takeover.
The Barsele project represents promising gold deposits within an attractive infrastructure in northern Sweden. Sweden itself is a sought-after mining location and shines with corporate taxes of only 22%. In addition, the high environmental standards of the country meet the desire of many investors for sustainably mined raw materials. Since Agnico Eagle has entered into a letter of intent, which provides for a large part of the payment for the project in shares of Barsele Minerals, investors can take this as a sign of confidence. Currently, the stock is trading at CAD 0.75. There is still a lot of air until the exercise price of the options to be granted to Agnico Eagle with a strike price at CAD 1.25. Key data around Barsele looks promising. Investors should have the value on their radar.
Newmont: Is Europe becoming attractive for the giant?
Investors always have the Newmont share on their radar. The world's largest mining group generates around three-quarters of its sales with gold. In addition, there is a lucrative copper business. Newmont has benefited from rising commodity prices in recent quarters. Although the dividend yield is only around 2% and the share price potential is also limited for a big ship like Newmont, the share can be a solid addition to a portfolio for cautious investors. Since the Company has also been working on its costs recently, Newmont should be able to ride out fluctuations in the commodities market.
Since companies like Newmont always have to replace their mined raw materials, the Company could even play a role in the constellation between Barsele Minerals and Agnico Eagle. Currently, the giant is not yet represented in Europe. As a promising project in a sought-after mining destination, Barsele Minerals could attract the interest of other majors. JinkoSolar, on the other hand, is not a takeover candidate. First, the Company itself is well-positioned, and second, it is already expensive. It is more likely that JinkoSolar will use its shares as a takeover currency.
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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.
The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.
