Close menu




May 21st, 2021 | 08:25 CEST

Newmont, Desert Gold, Kinross Gold, Aspermont: Gold outperforms Bitcoin

  • Gold
Photo credits: pixabay.com

In about eight weeks, the price of gold has transformed from a problem child to a beacon of hope. The reason: inflation is on the rise. In the US, consumer prices are already at 4.2%. At the same time, more and more economies are taking steps towards normality as the pandemic nears its end. That should ensure that prices continue to rise. Gold is particularly interesting because while demand can explode overnight, supply is slow to grow. Using various companies as examples, we explain how money can be made with this mixture of factors.

time to read: 3 minutes | Author: Nico Popp
ISIN: US6516391066 , CA25039N4084 , CA4969024047 , AU000000ASP3

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: Solid, but will there be more?

    If you want to be on the safe side when it comes to commodity investments, you go for the really big companies. One of these companies is Newmont. The Americans have swallowed up several mine operators in the past, including Goldcorp. Today, Newmont produces about 80% gold and 20% copper. This combination is promising, as copper is also rising strongly at the moment and is in great demand for infrastructure projects and regenerative energies. The past year went splendidly for Newmont, sales increased by about one-fifth and cash flow also rose strongly.

    Especially for dividend hunters, this is a good signal - the payout of just over 2% should thus be secured and could even be increased further. But high cash flows can also become a burden. Mining companies, in particular, are doomed to replace reserves. Newmont is taking the classic exploration route and has set up joint ventures with Agnico Eagle and Kirkland Lake Gold for this purpose. The stock is scratching an all-time high and is solid. However, the major producer is not an overachiever.

    Desert Gold: High-grade gold at a discount price

    The stock of Desert Gold might better serve those looking for growth. The Company holds 410 sq km in Mali, not far from the border with Senegal. To date, exploration work has already produced several high-grade results, including 6.28 g/t gold over a distance of 13 meters at Barani East and 3.62 g/t gold over 42 meters at Gorbassi East, among others. Exploration work to date also indicates new potential that the Company plans to explore in more detail. In 2021 alone, Desert Gold plans to drill more than 20,000 meters and already has enough funds in its coffers to do so.

    Desert Gold's market capitalization of less than EUR 15 million identifies the Company as a small-cap and shows the potential that speculative investors can see in the value. As recently as last summer, the stock was trading about 100% higher. In the meantime, the Company has raised fresh capital, published further results and the gold price seems to have completed its consolidation. While gold producers are already picking up, smaller companies are currently still lagging behind the trend. However, as soon as the upswing in gold solidifies, stocks like Desert Gold are likely to follow suit.

    Kinross: The crux with the mid-sized mines

    Between giants like Newmont and agile growth companies like Desert Gold are stocks like Kinross Gold. The Company is valued at around EUR 8 billion and is considered a mid-sized producer. Recently, Kinross was able to publish good quarterly figures within the preliminary estimates. Eight producing mines were doing well in 2020 and the largest mines also provided the lowest costs. In addition, Kinross has several projects in the development stage in Russia and Alaska. To meet its 2021 targets, the Company believes it is on track.

    While large producers can absorb problems on individual projects due to many mines, and small companies like Desert Gold only bear exploration risks, stocks like Kinross trade somewhere in between. Recently, smooth operations at the largest mines ensured that the numbers turned out well. On the other hand, problems such as landslides or water ingress could spoil the figures. Even though mid-tier producers are currently showing solid performances, investors should not underestimate their risks.

    Aspermont: Raw materials + new technology = future opportunity?

    An insider tip when it comes to mining investments could also be the Australian media Company Aspermont. Aspermont publishes renowned magazines, Mining Journal, Mining Magazine and many others. The former has a history of more than a century. Aspermont has undergone a digital transformation in recent years and is now lean and making money. Yesterday, the Company published figures for the first half of the year. These underline the good path the Company is on: gross margin climbed strongly to 63% and operating cash flow increased from AUD 0.7 million to AUD 2 million compared to the same period last year.

    Consequently, after a narrow loss in the previous year, the first half of 2021 also stands at a positive EBITDA of AUD 0.7 million. The Company stresses that the strong numbers result from new digital products - Aspermont is heavily involved in news, opinion, research, data, client marketing services and benefits from its customer base that has grown over decades. The stock could be an alternative for those who feel more comfortable in other industries instead of mining. Aspermont should also indirectly benefit from the commodities sector's positive market environment and has a digitalization fantasy.


    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

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by André Will-Laudien on January 18th, 2022 | 12:13 CET

    Lufthansa, TUI, Desert Gold - Explosive turnaround at the start of 2022!

    • Gold

    There was no sell-off in 2021 after all. Although the DAX started to crash in October and November, and the 200-day line was clearly undercut on both occasions at 14,850 points, the market nevertheless held these lines. The crash prophets all went quiet again, and by the end of the year, the index was back to just under 16,000 points. Who would have thought it - twice a whole 1,200 points reversal as if nothing had happened. High inflation figures and Omicron fears could not push the high liquidity out of the market so far. At the beginning of 2022, there are signs of a rebound for some beaten-up stocks.

    Read

    Commented by Armin Schulz on January 17th, 2022 | 13:22 CET

    Barrick Gold, Barsele Minerals, BP - Commodities are a sleeping giant

    • Gold

    For gold investors, 2021 was a very dull year. After breaking out to USD 2,075 in 2020, the commodity corrected and fluctuated between USD 1,600 and USD 1,900 in 2021. Medially, gold was displaced by bitcoin, and so there are many stocks in the gold sector, some of which are significantly undervalued. Oil has a similar fate. Due to climate protection, oil gets the image of a polluter, while a modern industrial society is still not possible without it. The major oil companies are no longer investing in the development of new deposits in order to improve their climate footprint. However, demand continues to rise and will remain high in the coming years. We take a look at three commodity companies from the two sectors.

    Read

    Commented by Carsten Mainitz on January 14th, 2022 | 12:31 CET

    Barrick Gold, Alerio Gold, First Majestic - Experts agree: 2022 will be the year of mining stocks

    • Gold

    2021 was a consistently strange year. Corona surprised with more new variants, Olaf Scholz became German Chancellor and the prices for gold and silver, despite ever-rising inflation, developed downwards towards the end year. While in the past many investors have relied on cryptocurrencies as a hedge against inflation, perhaps the recent price capers of the leading cryptocurrency, Bitcoin, could make investors rethink.

    Read