26. August 2021 | 12:15 CET
NanoRepro, Aztec Minerals, Xiaomi - The tension is rising
On Friday, the US Federal Reserve symposium gets underway in Jackson Hole. The strong recovery of the economy after the Corona lockdowns and the strong pick-up in inflation pointed to an end of unlimited bond purchases and the first interest rate hikes. But FED Chairman Jerome Powell sees the rise as temporary and is likely to be right. Rising infection figures due to the highly contagious Delta variant are throwing a spanner in the works of further economic growth. Thus, both Jackson Hole and the upcoming FED meeting are likely to be a non-event.
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ISIN: NANOREPRO AG | DE0006577109 , AZTEC MINERALS CORP. | CA0548271000 , XIAOMI CORP. CL.B | KYG9830T1067
"[...] 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often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production.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.
Gold as an alternative
In Germany, too, the mood is clouding over due to supply bottlenecks for intermediate products in the industry and fears of rising infection figures. The IFO business climate index, Germany's main economic barometer, fell to 99.4 points from 100.7 in July, according to the Munich-based IFO Institute's monthly survey of around 9,000 managers. With the most challenging months ahead of us in terms of the Corona Crisis, as was the case last year, no one is likely to expect economic growth to pick up further in the eurozone either. Thus, despite currently higher inflation figures, the ECB will also stick to its loose monetary policy, which speaks for investments in precious metals, especially gold.
Gold mining stocks offer an indirect opportunity to profit from the gold price with a leverage effect, i.e. in the event of a long-term increase in the price of the base metal, securities of gold producers or exploration companies benefit disproportionately. The share of Aztec Minerals is interesting as a portfolio addition. The Canadian Company, peppered with well-known figures from the mining industry such as the geologist Allen David v. Heyl, who has a history of discovering and valuing more than 30 million ounces of gold and 25 million tons of copper with companies such as Barrick Gold and Zijin Mining, focuses on deposits in North, Central and South America.
The Cervantes core asset, in which Aztec Minerals holds a 65% interest with joint venture partner Kootenay Silver Inc. owning the remainder, is located in Sonora, Mexico, and has prospective porphyry gold-copper deposits. In the immediate vicinity are the producing mines of Alamos Gold and Agnico Eagle.
Well ahead of plan
With better than expected results from the first phase of the surface exploration program and the rediscovery of additional gold-copper-molybdenum soil and rock geochemical anomalies, a Phase 2 reverse circulation drill program over 5,000m is planned to be carried out in the third quarter on this basis. Discussions are currently underway with the partner to secure funding.
Aztec Minerals is also well ahead of schedule on its second project, Tombstone, which is believed to contain high-grade mineralization of silver, lead, zinc and gold. The property is also being bundled into a joint venture in which the Canadians own 75%. Tombstone is located in Cochise County in Arizona. With outstanding results at the two projects, Aztec Minerals is placing itself further and further into the acquisition window. The market capitalization of the share, which is traded in Frankfurt and Toronto, is just EUR 11.55 million.
Delta brings business
After the biotechnology and diagnostics Company QIAGEN announced that it was again feeling an increase in demand for corona tests, the competition is also buzzing. NanoRepro, based in Marburg, Germany, specializes in the development, manufacture and national and international distribution of medical self-tests and is primarily active in health planning and preventive medicine.
Since last year, the main sales driver has been the distributed COVID-19 tests, including those from Viromed. Now it has been announced that the primary customer is becoming a major shareholder. NanoRepro was informed that Mrs. H Perbandt, the majority shareholder of the Viromed Group, holds a share of approx. 12.17% in the Company. In addition, Viromed Group itself invested 3.9% in the Marburg-based Company. A further approximately 9.4% was purchased by family members of Ms. Perbandt and 6% by Viroxx medical GmbH, in which Ms. Perbandt holds a 45% stake.
The share is up by double digits and is quoted at EUR 10.50. After a significant correction, NanoRepro is again promising. A complete takeover should not be excluded.
Strong figures again
The Chinese technology Company Xiaomi once again reports strong figures and continues to be on a rapid growth course. In the second quarter, revenue amounted to 11.54, an increase of 64% compared to the same period last year. Revenues at the smartphone business rose disproportionately by 87% to EUR 7.77 billion, equivalent to sales of 52.9 million units. Adjusted net profit also increased by over 85% to EUR 0.81 billion. Xiaomi was thus well above the analysts' forecasts.
Rising infection figures into the fall and winter are likely to slow economic growth again. Thus, the cry for monetary tightening should also be off the table for the next few months. Gold is a safe haven and an attractive investment alternative over the long term - Aztec Minerals has excellent potential due to two promising projects. NanoRepro benefits from the increasing demand for corona testing.