January 7th, 2022 | 13:53 CET
Lufthansa, Prospect Ridge Resources, S&T - Profits beckon here
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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
Lufthansa - Hope for the end of the pandemic
If Omicron succeeds in heralding the end of the pandemic, we can expect air traffic to return to normal from the summer onwards. That would significantly improve Lufthansa's prospects. The German government recently eased entry restrictions for Great Britain and eight other countries. The possibility of a reduction in quarantine times will also benefit the airlines.
Transport flights and business travel, in particular, should pick up in the short term, provided the situation eases further. However, there was also negative news. It became known at the end of December 2021 that Lufthansa would be forced to operate 18,000 empty flights due to EU regulations. If the Group did not carry out these flights for climate protection reasons, it would have to forego take-off and landing rights in the future. Attempts to persuade the EU Commission to change its mind failed.
Ultimately, however, hope for an end to the pandemic prevails, and the Lufthansa share has performed strongly so far this year. Since the turn of the year, the share price has risen from EUR 6.18 to EUR 7.20 at its peak. The share is currently trading at EUR 6.75 and has formed a small upward trend. On January 5, the downward trend was broken. Recently, several analysts have raised their price targets for Lufthansa. However, interested investors should wait for a setback.
Prospect Ridge Resources - 3 interesting projects at once
Gold has always been popular as an inflation hedge. The Canadian commodity explorer Prospect Ridge Resources (PRR) already has gold deposits but has only been listed on the Canadian Securities Exchange (CSE) since the end of May. Since then, a lot has already happened. On August 27, the Holy Grail project was acquired from Loan Wolf, located in British Columbia (BC). The area is 70,000 hectares and is situated on the edge of BC's Golden Triangle. Exploration drilling from 2020 indicated gold grades of 893, 976 and 984 g/t gold over an area of 3.5 km by 6.5 km.
In-house exploration collected 500 rock samples, 850 soil samples and 40m of channel samples. Up to 117 g/t gold and 581 g/t silver were found, as well as copper, lead and zinc. Holy Grail can be considered the flagship of the Company. On November 9, the Company announced the acquisition of the Knauss Creek property, where the Dorreen Mine produced an average of 57 g/t gold and 205 g/t silver in 1924. The property is 3,152 hectares in size and is also located in BC. In addition to precious metals, copper, lead and zinc were also mined here. In addition to the historic mine, 5 other zones of visible gold mineral occurrences have been identified with little testing. Initial results from December look promising.
In addition, the Galinee project in Quebec is also on the exploration schedule this year. The area consists of 15 contiguous claims totaling 839 hectares. The Company has raised the money for the upcoming exploration in private placements with a total of CAD 8.5 million raised. The share made its stock market debut at CAD 0.20 and then shot up to CAD 2.75. Since then, the stock has consolidated and is currently trading at just CAD 0.65, well below the CAD 1.00 price of the last capital increase. If the results continue to be positive, the share could quickly rise again.
S&T - Waiting for the report from Deloitte
With Corona, it has become clear to even the last doubters that digitalization must proceed more quickly. IT companies such as S&T should benefit from this. However, an analysis by Viceroy Research in mid-December 2021 sent the share price on a downward slide. It mainly criticized acquisitions from the IoT sector and the unclear corporate structure. This is the second time after 2020 that the Company has fallen victim to a short attack.
Following Viceroy's report, the share fell from EUR 19.30 to EUR 12.36. An initial statement by the Company announcing that it would address the criticisms largely fizzled out. The Company's chief executive Hannes Niederhauser reiterated that S&T AG's operating performance is within the range of the current guidance for 2021. Meanwhile, Deloitte has been commissioned to conduct an independent audit.
In addition, Michael Riegert was appointed as the new Chief Operation Officer for IoT Solutions Europe on January 5. The Company's structure is also to become more transparent. The approach pleases analysts, such as Alster Research, who see the price target at EUR 31. Hauck & Aufhäuser has issued the same price target in its BUY recommendation. The share is currently trading at EUR 14.53 and thus has more than 100% potential. The prerequisite should be a corresponding report from Deloitte.
All three companies have significant upside potential. In the case of Lufthansa, Corona plays an important role. If the situation normalizes, the share will also take off again. Prospect Ridge Resources has promising projects, some of which have very high gold and silver grades. One can be curious about upcoming results. S&T is trying to smooth the waters. So far, this has only been partially successful. Things will remain bumpy until the Deloitte audit is completed. If a positive report comes in for the Company, the share has clear potential.
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