Close menu




October 15th, 2021 | 13:39 CEST

Newmont Corp, Triumph Gold, Lufthansa, TUI - Dramatic turnaround in the course!

  • Gold
Photo credits: pixabay.com

Gold and silver are turning in significantly, Lufthansa and TUI have gone through with their large capital increases - what is next here? Even if the major indices experienced a strong correction in October yesterday, there was a dramatic turnaround in several respects. Volatility as a fluctuation indicator even came back so strongly in the last few days that it fell below the threshold of 20 again. This indicator shows that the need for hedging is probably dwindling, i.e. the interest of the investment community tends to be directed upwards again. But inflation can still put a spoke in the party's wheel - but that would again be a buying argument for the precious metals! We direct our view on some turnaround candidates.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: NEWMONT CORP. DL 1_60 | US6516391066 , TRIUMPH GOLD CORP. | CA8968121043 , LUFTHANSA AG VNA O.N. | DE0008232125 , TUI AG NA O.N. | DE000TUAG000

Table of contents:


    Justin Reid, President and CEO, Troilus Gold Corp.
    "[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

    Full interview

     

    Newmont Corporation - Up again after 25% correction

    Of all the major gold stocks, the industry leader Newmont Corporation has corrected the least. That is because its production portfolio is spread worldwide and yields around 8 million ounces of gold per year. This natural hedge across the globe is significant because, in some jurisdictions, political changes lead to shifts in sentiment or even new levies that were not foreseen in the planning in this way.

    Until now, the US and especially the state of Nevada, where mining giants like Newmont Mining and Barrick Gold also operate, was considered one of the most mining-friendly regions. A new law passed by the US House of Representatives could change this because little has changed in mining law since 1872. For instance, unlike oil, gas and coal companies, hard rock mines do not pay royalties to the state and thus often avoid liability for environmental risks.

    Similar to Chile, the US mining industry, which has profited from the sharp rise in commodity prices, is to be put under closer scrutiny. Earlier attempts by the Democrats were unsuccessful due to a lack of congressional support. The royalties now to be levied on domestic hard rock mines for the first time in the USA would provide for a levy of 8% on new mines and 4% on existing mines. Each would be levied on gross revenues.

    Gold mining, in particular, would be severely negatively impacted if the bill is passed by Congress in its amateurishly drafted form. After all, the US is the fourth-largest gold producer globally, with a market share of about 10%. The largest production comes from the "gold state" of Nevada, where all of Newmont and Barrick's core areas are located. If the bill is passed through Congress, these will take a 20-40% hit on their net margins.

    So it is not just the weak gold price that is weighing on sentiment. The desire of politicians to finance their green policies through taxes could also weigh on the mining companies. So if you are betting that such a thing will never be passed, buy the analytically cheap Newmont into your standard portfolio. The leverage to the gold market for this stock is about 5.

    Triumph Gold - A flagship project in the Yukon region

    Those looking for unique opportunities in the precious metals sector, in addition to the standard stocks, look to the share of Triumph Gold Corp, a Canadian-born explorer focused on several properties in the Yukon Territory. The flagship project hosts three world-class mineral deposits in the extensive section of the Big Creek fault zone. Current drilling has been ongoing since late June, and a total of 8,000m is planned in four different zones. In addition, 100km of ground surveys, soil sampling and surface trenching will be undertaken. Since the middle of the year, the search algorithms have also been supported by artificial intelligence; this significantly improves the data-driven hit accuracy in the target area.

    Newmont is already a well-known shareholder of Triumph Gold and operates its Coffee Creek project in the immediate vicinity. The existing infrastructure benefits both companies. In 2021, Triumph additionally secured the Big Creek property, which is expected to host gold and industrially recoverable copper. Historically, many successes have been proven within the Dawson Range, especially in gold and copper.

    Currently, resources are put at 2 million ounces of gold and copper. When the gold price shot above USD 2,000 in 2020, TIG shares traded at a high of CAD 0.48. Currently, the junior explorer has a low capitalization of CAD 18.5 million. Given high inflation figures, the gold stock in the range of CAD 0.12-0.15 is an interesting addition with good leverage.

    Lufthansa and TUI - Lots of new money in the coffers

    Lufthansa and TUI have managed to collect yet more money from their investors. In the case of Lufthansa, the crane line will repay more than 50% of the government crisis aid in 2021. Several states in the EU had granted Lufthansa bridging loans worth billions during the height of the Corona pandemic; these are now happy to be triggered by the inflowing equity.

    Lufthansa raised EUR 2.16 billion by placing new shares. The Economic Stabilization Fund (WSF) received an immediate transfer of EUR 1.5 billion. The airline intends to repay the remaining loan of EUR 1.0 billion before the turn of the year. Since August, WSF has reduced its shareholding in Lufthansa from 20% to currently 14.1%, and the fund only participated in part of the capital increase.

    TUI also successfully placed its EUR 1.1 billion capital increase on the market. However, as this was not enough to stabilize the balance sheet sufficiently, the travel group again sold a hotel investment. Specifically, the tour operator sold its 100% subsidiary Nordotel to the joint venture Grupotel, in which the Hanover-based company and the Spanish hotelier family Ramis each hold a 50% stake. With this step, TUI intends to continue its streamlining process and further reduce complexity in the Group.

    Both Lufthansa and TUI are not high on analysts' radar at the moment. Usually, these times of poor sentiment mark turning points in the share price development. Therefore, those who are not afraid of risks and are speculatively oriented can get involved in both charts close to the 3-year lows. Whether the deal works out or not will probably depend primarily on the further course of the pandemic and future political decisions on how to deal with the new widespread flu.


    Difficult political or economic situations put downward pressure on prices for the affected sectors. While commodity and energy prices are exploding worldwide, tour operators, airlines and precious metal stocks are once again significantly cheaper in a 12-month comparison. The stocks discussed here are rich in opportunities but have a high-risk profile. Triumph Gold can multiply with appropriate discoveries, which will probably not be achieved with the standard value Newmont Corp.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by Armin Schulz on February 6th, 2023 | 07:46 CET

    Nel ASA, Manuka Resources, TUI - Which stocks will take off in 2023?

    • Mining
    • Commodities
    • Silver
    • Gold
    • greenhydrogen

    Shares are a popular form of investment that can hold a lot of potential. Particularly interesting are stocks that are positioned before a turnaround. This means that the Company has had difficulties in the past but is now expected to see positive changes in its business potential. These stocks can bring large profits if successful, as they often trade at lower prices and have great upside potential. However, it is important to thoroughly analyze the Company's financials and business model before investing in such stocks. We take a look at three promising titles.

    Read

    Commented by André Will-Laudien on January 31st, 2023 | 14:50 CET

    E-mobility 2023: The Tesla hunters are coming! BYD, Lucid Motors, Tocvan Ventures. Will the Varta share now also fly?

    • Mining
    • Gold
    • Electromobility
    • Investments

    It Is hard to believe! The Tesla share is once again making a name for itself. Analysts went into the presentation of the annual figures with cautious expectations because there were many negative rumors surrounding Elon Musk's electronics company: Fewer sales? Cars on stockpile? Again, it came as no one had expected it. Elon Musk delivered and simultaneously mocked all the shorties who wanted to push his stock below USD 100 at the turn of the year. This gambit went badly wrong because Tesla was able to deliver even better figures than expected, and there was no stopping the share. With plus 70% in only 4 weeks, the Tesla share belongs to the shooting stars since the turn of the year - the short sellers must have lost their desire completely. But the variety of interesting shares is significant. Where are the opportunities for e-investors lurking?

    Read

    Commented by Nico Popp on January 26th, 2023 | 20:07 CET

    Gold and war - rethink now! Barrick Gold, Globex Mining, Rheinmetall

    • Mining
    • Gold
    • Commodities
    • armaments
    • Growth

    Gold is shining again. The weaker dollar and the existing geopolitical risks are boosting the precious metal. But how should investors invest? What opportunities are there off the beaten track? And: Given the crises, does gold have to be in the portfolio? We highlight three hot stocks and provide insights and outlooks on the gold price and the overall geopolitical situation.

    Read