Menu

Recent Interviews

Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


14. May 2021 | 08:16 CET

Kinross Gold, SunMirror, Yamana Gold - Volatility is rising, now what?

  • Gold
Photo credits: pixabay.com

Rules and exceptions. A well-known saying goes that there is no rule without exception. Looking at yesterday's stock market as a snapshot, one might conclude that "volatility is rising and everything else is falling." Right, or wrong? It is often just a matter of perspective and a snapshot in time. Long-term evidence is that precious metals stocks are a good investment idea during difficult stock market periods. We have brought several of them.

time to read: 4 minutes by Carsten Mainitz


Steve Cope, President, CEO and Director, Silver Viper
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper

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


KINROSS GOLD CORPORATION - Quarterly figures presented, bargain alert

Founded in 1993, Kinross Gold is a leading gold mining company with an extensive portfolio of mines and projects in the US, Brazil, Chile, Ghana, Mauritania and Russia. During the past fiscal year, the Group produced approximately 2.4 million gold equivalent ounces and had over 30 million ounces of proven and probable gold reserves and over 59 million ounces of silver reserves. The senior producer operates mines and is equally focused on greenfield and brownfield exploration in North and South America, West Africa, and Russia. Kinross has used acquisitions in the past to drive expansion into new regions and production growth. The Group places a high priority on sustainability.

This week, the Toronto-based Company reported first-quarter numbers and held its annual shareholder meeting. In Q1, Kinross saw profits rise 10% to USD 149.5 million, or USD 0.12 per share, but missed market expectations. Production slipped slightly by 1.5% to 558,777 ounces of gold equivalent in the opening quarter. The decline was mainly due to lower production at Tasiast and Round Mountain, which was partially offset by higher production at Bald Mountain. The average realized gold price in Q1 was USD 1,787 per ounce, up 13% from the same quarter last year. Margin per gold equivalent ounce sold reached USD 1,031, an increase of 25%.

In the current fiscal year, Kinross expects to produce approximately 2.4 million gold equivalent ounces at a unit production cost of USD 790. In 2022 and 2023, annual production is expected to increase to about 2.7 and 2.9 million gold equivalent ounces, respectively. The stock is currently trading at just under CAD 9. With a market capitalization of CAD 11.2 billion, the Canadians are thus a solid player in the market. With a 2022 P/E ratio of 6.4, the stock is currently a bargain. All analysts who rate the stock arrive at a "Buy" assessment and set an average price target of CAD 13.05. That is a potential of almost 50%. What else is there to wait for?

SUNMIRROR AG - New analyst report continues to see price potential

The Swiss Zug-based holding Company invests in promising commodity projects and companies, focusing on gold and critical commodities. The Swiss Company's portfolio includes three properties in Western Australia: the Moolyella project (lithium, tin), the Kingston Keith project (gold and nickel) and the Cape Lambert project (iron ore).

Recently, analysts from Sphene Capital took a closer look at the stock and re-evaluated the projects mentioned above. The experts used three valuation methods (NPV, peer group multiples, sum-of-the-parts) and formulated a price target of EUR 174.30 per share. Currently, the shares are trading at EUR 156. But that the Company has the necessary institutional coverage is shown by the recent placement of a convertible bond in the volume of USD 10 million. The convertible bond entitles the holder to purchase a total of 133,305 bearer shares with a par value of CHF 1.00, and the conversion price is CHF 70 per share, a significant discount to the current share price. The convertible bond matures on May 30, 2022. In addition, SunMirror reported a letter of intent from an investor, Barracuda Group, to subscribe to a capital increase of 1 million shares.

According to the EU, the list of critical raw materials includes 30 elements. The economic importance of the respective raw material within the EU and the related supply risk is high. Thus, SunMirror is backing the right horse with this investment focus. We also consider investments in gold projects to be full of opportunities. However, interested investors should be aware of the low liquidity of the stock.

YAMANA GOLD INC - 30% Upside - at least!

Yamana is a Canadian-based precious metals producer. Its portfolio includes five producing gold mines and several advanced-stage development projects and exploration properties in North America, Brazil, Chile and Argentina. The Canadians are growing on several levels. Firstly, through the expansion and optimization of existing mines, secondly, through the development of new mines, and thirdly, the further development of its own exploration properties. In addition to this organic growth, inorganic growth, mainly in North and South America, also plays a significant role for Yamana. Skillful acquisitions and investments and an eye for potential have enabled the Company to grow so strongly in recent years. In April, Yamana acquired 6.4% of Ascot Resources in a private placement, strengthening its footprint in the British Columbia Golden Triangle. Earlier in the year, Yamana had completed the friendly all-stock acquisition of Monarch Gold.

Last summer, the share certificates were quoted around the CAD 9 mark in the course of the all-time high in gold and sank to CAD 5 in the following months. Currently trading slightly above CAD 6, Yamana has a market capitalization of CAD 5.7 billion. The relatively high 2022 P/E ratio of 12.4 is no reason for skepticism, even if one considers the much lower P/E ratios of Barrick (2022: 16.4) or Kinross (2022: 6.4). After all, Yamana is also growing significantly faster than its competitors. A total of eight analysts rate the share; half of them come to the assessment "Buy," the other half to "Hold." The average price target of the expert community for the title is CAD 7.76, an upside potential of around 30%. The most optimistic analyst even formulates a target of CAD 10. As gold bulls, we like all this very much.


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.


Related comments:

18. June 2021 | 14:39 CET | by André Will-Laudien

Carnival, TUI, Desert Gold - A total upswing or is it all over again?

  • Gold

It is probably one of the strangest travel waves since we could remember. For months we Germans could not leave our own country's borders without great effort; the ski season in 2020/21 fell victim to the COVID pandemic almost completely. Now we experience amazingly low incidences, which probably would have come even without lockdown...but let's take that as a given because some action had to be taken as public proof of action, after all. Now travel is possible again with good conditions for the vaccinated and a bit more cumbersome for recovered, healthy and non-vaccinated. Exciting to observe: How are the travel companies doing now?

Read

18. June 2021 | 11:34 CET | by Stefan Feulner

Bayer, White Metal Resources, Barrick Gold - Trendsetting news

  • Gold

At Federal Reserve's meeting, runaway inflation was the topic par excellence. With US consumer prices up 5% in May, market participants assumed at least an announcement of a pullback in bond market volume. However, an interest rate hike, which would actually be necessary for price stability, is not considered before 2023, according to FED Chairman Jerome Powell. Thus, through the continued ultra-loose monetary policy, he refers to the attitude that economic growth and a rising stock market are more important than low inflation.

Read

16. June 2021 | 11:59 CET | by Armin Schulz

Barrick Gold, Triumph Gold, Bayer - is a golden summer coming?

  • Gold

An old stock market adage says: Sell in May and go away. In German: Sell your positions; in summer, the market will consolidate. There was a slight correction at the beginning of May, but the DAX has been climbing since then. It is currently trying to reach the 16,000 point mark. The price of gold recently traded above USD 1,900 for the first time again, which can certainly be understood as a sign that investors want to secure their money from inflation. While the US Federal Reserve emphasized that it does not want to take any countermeasures for the time being, the US Treasury Secretary Yellen recently surprised with the statement that higher interest rates would be good for the United States. It remains exciting. There is the possibility of a golden summer on the markets.

Read