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Dirk Harbecke, Executive Chairman, RockTech Lithium Inc.

Dirk Harbecke
Executive Chairman | RockTech Lithium Inc.
600 – 777 Hornby Street, V6Z 1S4 Vancouver (CAN)

info@rocktechlithium.com

Rock Tech Lithium: Where Canadian Mining Meets German Engineering


Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


24. February 2021 | 08:45 CET

K+S, Desert Gold Ventures, Encavis - Buy before others do!

  • Gold
Photo credits: pixabay.com

"The profit is in the purchase." Or so says an old merchant's rule. There are a few more facets to it in stock investments like time horizon and performance. A long-term oriented, perhaps also anti-cyclically thinking investor does not get gray hairs if it takes longer for his investment idea to work out. In contrast, timing plays a vital role for traders or short-term oriented investors. For institutional investors, the question of where their performance lies in comparison to the benchmark is often decisive. We introduce you to three exciting companies that are currently on the move. Where is the greatest potential lurking?

time to read: 3 minutes by Carsten Mainitz


Ryan Jackson, CEO, Newlox Gold Ventures Corp.
"[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

Full interview

 

Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

About the author


K+S - BaFin is grumbling

The price of K+S has been moving in the right direction again in recent months, after a prolonged dry spell. Last week, the upward trend came to an abrupt end in the area of EUR 10, when the Company announced that the Federal Financial Supervisory Authority (BaFin) had ordered an audit of the balance sheet by the German Financial Reporting Enforcement Panel (DPR).

Whether the balance sheet values were overstated and whether the Group should have made higher write-downs in the past is in question. BaFin is taking Company statements in connection with last November's Q3 report as an opportunity to scrutinize the 2020 half-year report and the 2019 annual financial statements. The sticking point: at that time, K+S had lowered its assumptions on the long-term development of potash prices and increased its cost of capital. BaFin suspects that the depreciation taken by the Europe+ operating unit of around EUR 2 billion may have been too low. "BaFin has concrete indications that this impairment requirement may not have been determined correctly and should have been recognized in full or in part at an earlier point in time. Likewise, other asset items may be affected by a need for impairment," the regulator said.

To put this in perspective, in October 2019, fertilizer and salt producer K+S had announced its intention to sell its salt business in North and South America. The price achieved of USD 3.2 billion positively surprised many market participants. On the one hand, this transaction led to a better balance sheet structure in deleveraging; on the other hand, K+S is now less diversified and more dependent on the fertilizer business and potash price. Although the fertilizer business is more volatile, it also harbors more significant opportunities. It cannot be entirely ruled out that K+S will have to write down a higher amount, especially if calculation and valuation methods have changed. With total assets of EUR 10.6 billion and equity of EUR 4.6 billion, a write-down would be bearable. We will see how the case turns out.

DESERT GOLD VENTURES INC - G is for Gold

The gold price is currently consolidating around the USD 1,800 mark. A shift is taking place in the broad stock market - away from hotly traded tech stocks and towards "value stocks." Thus, the stock of Desert Gold is attractive for investors in two respects. Firstly, it offers exposure to the crisis currency, gold. The price of gold is bound to rise over the medium term in light of central bank policy and the global economy. Secondly, the share is very moderately valued. The Company weighs in at just CAD 25 million.

The gold exploration and development Company is fully committed to the African nation of Mali and is in good company with world-renowned players. Mali is the fourth-largest gold producer on the Dark Continent. The portfolio focuses on two gold exploration permits with large land areas, for the SMSZ Project and Djimbala, in western Mali. The Djimbala Gold Project is 100sqkm in size and is located near producing mines.

A few weeks ago, Christopher Marsh, appointed as Independent Director, strengthened the already experienced management team. Marsh brings many years of experience in investment banking and corporate development. Positive news from the exploration program or a rising gold price will positively affect the share price.

ENCAVIS AG - Electricity production at a new record; nevertheless, the share plummets

Yesterday, Encavis reported on electricity production for the last year. Despite new production records and a positive outlook, the share price fell yesterday by 10% in some cases to around EUR 17. At the beginning of the year, the shares were still trading at EUR 25.

In 2020, the Hamburg-based Group, which generates electricity exclusively from renewable sources, increased electricity production by 29% from around 2.66 TWh to 3.43 TWh. This growth was primarily based on acquisitions of wind and solar farms.

Encavis generally invests conservatively. Investments are only made in solar and wind parks that are in the construction phase, turnkey or already in operation. Thus, the share price development in recent months and yesterday can be understood as a "sell on good news". The current price level offers itself for additional purchases.


Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


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Barrick Gold, Varta, Osino Resources - Into the Fallen Angels!

  • Gold

For more than 6 months now, the gold correction continues. The high of USD 2,075 in August 2020 went down in waves until a cyclical low of USD 1,687 was reached last week. The trigger was the inflation warnings celebrated by Fed Chairman Powell, which sent the US bond market into the basement. The 30-year US bond (long T-bond) has now lost a full 10 points in price since October 2020, and the yield currently stands at 2.31%. Inflation bells ring at yields above 2.50% - so the distance to the signal line is no longer too great. If the ghost of inflation returns, the precious metals are likely to jump.

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TUI, Desert Gold, Barrick Gold: Investing solidly in the future

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SKRR Exploration, First Majestic, Lufthansa - These values take off!

  • Gold

Once again, a sell-off day for the precious metals! Often observed these days, in the morning, a stabilization of spot prices, US trade hardly sets in: Out with it! All supposed price gains are used on the other side of the Atlantic to sell short again. Yesterday, we started at USD 1,740 and ended up at the low of USD 1,702 - a minus of 2.2%. The strategy makes perfect sense in light of rising yields: Higher interest rates damage gold holdings - but they also indicate burgeoning inflation. And if this ghost continues to sail the halls, there will ultimately be a run on gold and silver. Only, as always, it's not the time yet, but it will not be long either!

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