19. November 2021 | 12:15 CET
Moderna, Tembo Gold, Nvidia - Running!
The Corona pandemic is currently experiencing its peak in terms of infection numbers in its fourth wave. Thanks to booster shots and the soon to be approved vaccine for children, vaccine manufacturers are profiting. As a result of the torn supply chains and the semiconductor crisis, chip manufacturers are posting record results due to sharply increased prices. Inflation combined with the current low interest rate environment is, in turn, fodder for gold companies. Profit from this cycle.
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ISIN: MODERNA INC. DL-_0001 | US60770K1079 , TEMBO GOLD CORP. | CA87974N4057 , NVIDIA CORP. DL-_001 | US67066G1040
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
Get to work
There is much to do, so let's get started! A famous quote by the ancient Greek philosopher Plato can be 100% applied to the gold exploration company Tembo Gold. The story that the Canadians can tell is almost unbelievable. A share certificate was worth just under CAD 7.00 in 2012, and currently, the share has just managed to rise to CAD 0.40 after a recovery. The reasons are that exploration work has been stopped for more than 7 years. Now the programs are to be restarted. There is a gold rush mood due to the new government in Tanzania, which supports mining massively in contrast to its predecessors.
The eponymous Tembo mine is strategically located in the Lake Victoria goldfield in Tanzania next to one of the largest high-grade gold deposits in the world, Barrick Gold's Bulyanhulu mine, with more than 20 million ounces of gold mined or contained to date. Since October, the mining camp at Tembo has been refurbished to resume a 7,000m drilling program to follow up on previous drilling totaling 50,000m. Before the shutdown for maintenance and servicing, the deposit size was 110 sq km, which has now been expanded to 174 sq km. Drill targets have also been expanded by 54.
David Scott, President & CEO, stated, "We look forward to the upcoming activities with growing excitement and are particularly looking forward to seeing personnel on-site and mobilizing drillers. We anticipate that our persistence and commitment to maintaining and expanding the property and maintaining our status as a publicly-traded junior gold company will now be duly rewarded."
Strong numbers expected
That record figures would cross the tickers could have been guessed - at the latest, when you look for graphics cards from market leader Nvidia in the local electronic stores of the republic. The high demand for chips for data centers and computer games gave one of the largest developers of graphics processors and chipsets for personal computers, servers and game consoles from Santa Clara in California a strong boost in sales and earnings. In the third quarter, sales rose by around 50% to USD 7.1 billion. Profits exploded by as much as 84% to USD 2.46, which exceeded analysts' estimates.
The main reason for this was the strongly growing gaming business, in which Nvidia is one of the most sought-after suppliers with its graphics cards. The segment grew by 42%, while the business with chips for data centers increased by 55% to almost USD 2.9 billion. In contrast, sales of chips for the automotive industry fell by 11% to USD 135 million.
Concerning the planned takeover of the British chip designer Arm, Nvidia intends to stick to its plan despite massive concerns from competition regulators. The USD 40 billion deal is currently being examined by the EU and the UK, and the US regulator FTC.
In the wake of the published quarterly figures, US analyst Bernstein Research raised its price target substantially from USD 230 to USD 360. In addition to the strong figures, analyst Stacy Rasgon also highlighted the outlook for the final quarter, which once again exceeded market expectations. For the fourth quarter, the US company expects sales of USD 7.4 billion. Analysts were expecting revenues of USD 6.9 billion.
Change of trend
After correcting significantly in recent weeks, the US biotechnology company based in Cambridge, Massachusetts, which focuses on discovering and developing drugs based on messenger RNA, seems to be holding support at USD 230. Part of the reason for the vaccine maker's rise is the Standing Committee on Immunization (Stiko) announcement that it will extend the recommendation for booster vaccinations to people 18 years of age and older. To date, Stiko's guidance has been for booster vaccinations for people 70 years of age and older, people with immunodeficiency, residents of long-term care facilities, and medical facility staff and caregivers.
Also positive for the development of the share price is the submission of an application to Swissmedic, the Swiss Agency for Therapeutic Products, to extend its vaccine approval against coronavirus to children between the ages of 6 and 12. So far, in addition to the vaccine from BioNTech and Pfizer, only Moderna's preparation has been approved for adolescents aged 12 and older.
Vaccine manufacturers such as Moderna are the primary beneficiaries of the Corona pandemic, while the sharp rise in prices in the chip sector helped Nvidia achieve record results. The price increase should ensure a rising gold price in the long term. Tembo Gold has picked up speed after a hiatus of around 7 years and is interesting at a low level.