09. September 2020 | 06:26 CET
Naga Group, Triumph Gold, UmweltBank - who has a crisis-resistant business model?
In times of the Corona Pandemic, many companies have learned the limits of their resilience. There are winners and losers as well as market participants who have not experienced any changes. When the panic in the markets was at its peak in March 2020, the price of gold was also on a downward trend. A few months later, the symbolic USD 2,000.00 mark was already exceeded. The measures taken by the central banks are leading to different developments in the various sectors of economic life and investors can benefit from this.
time to read: 3 minutes by Mario Hose
TRIUMPH GOLD CORP - Golden times in the Yukon
In July 2020, the Canadian exploration company Triumph Gold announced plans for the upcoming exploration season at its 200 km2 Freegold Mountain project. The area is located in the Dawson Range region of the mining-friendly Yukon and a significant advantage is that it is accessible by road. The project hosts three NI 43-101 compliant mineral deposits and covers a significant portion of the Big Creek Fault Zone - a structure associated with epithermal gold and silver mineralization and gold-rich porphyry copper mineralization.
"The 2020 exploration program is aimed at unlocking the higher-grade gold areas of the Freegold Mountain project that our technical team have been working on over the past couple of years," said John Anderson, executive chairman. "Now that there is a clear path to be able to work in Yukon given delays due to COVID-19, we are very pleased to start drilling the first week of August. We are truly excited about what these projects can deliver using a 'gold-first' exploration focus.".
The results of this drill program are eagerly awaited. Newmont is Triumph Gold's largest shareholder and at current gold price levels, an acquisition by a producer may be a possible scenario as reserves increase. The market value of the company is currently around CAD 40 million and would be easily shouldered by the major producers even at a significant premium. Access to the oldest currency in the world can't hurt.
UMWELTBANK AG - the bank that does good
UmweltBank AG stands for banking transactions with ecological and social responsibility. It offers investors transparent ecological investments and supports private individuals and commercial customers throughout Germany by financing environmentally friendly projects. According to GBC Research, UmweltBank is consistently implementing its ecological orientation by exclusively offering a green product range.
In addition to the classic savings account, the company offers green fund products, makes ecological investments, offers ecological insurance policies and finances green projects, among other things. In doing so, UmweltBank functions as a direct bank, without the classic branch business. Since its foundation in 1997, more than 23,500 loan projects have been supported. At the end of 2019, environmental loans with a total volume of EUR 2.6 billion were on the books. The majority of the loan volume consists of solar energy financing, residential real estate and wind and hydroelectric power projects.
Even during the Covid 19 pandemic, the business model of UmweltBank AG proved to be comparatively sound, as expected. For the most part, GBC analysts have left their previous forecasts unchanged and have only included earnings forecasts for the current 2020 financial year.Although they expect all earnings components to improve in the second half of 2020, overall they are likely to be slightly below their expectations. The analysts therefore reduce their net interest income forecast from EUR 51.66 million to EUR 50.43 million. However, they still confirm their price target of EUR 14.50 and maintain their "BUY" rating.
NAGA GROUP AG - impressive restructuring
The Naga Group is an innovative Fintech company that seamlessly connects personal financial transactions and investments with its social media trading platform. The platform offers a variety of products ranging from stock trading, investments and crypto-currencies to a physical Mastercard. In addition, the platform enables exchange with other merchants, provides relevant information in the feed and autocopy functions for the trades of successful members.
Against the background of the initiated restructuring and taking into account the high capital market volatility in the environment of the Covid 19 pandemic, the Naga Group has achieved high growth rates in the first months of 2020, according to analysts from GBC Research. In the first half of 2020, the Naga Group achieved sales revenues of about EUR 12.1 million (previous year: EUR 1.7 million) with an EBITDA margin of about 30.5 %, corresponding to an EBITDA of about EUR 3.7 million (previous year: EUR -4.6 million).
This development is based on the number of new customers of more than 46,000 users (previous year: 18,500) and the significant increase in the trading volume to around EUR 50 billion (previous year: EUR 16.5 billion). The successful development continued in July, when a turnover of around EUR 2.2 million was achieved with a trading volume of almost EUR 10 billion. As part of their DCF valuation model, GBC's analysts have set a target price of EUR 3.75 per share and continue to assign a "BUY" rating.