Close menu




April 7th, 2022 | 14:35 CEST

Newmont, MAS Gold, Barrick Gold - This will be the hard currency

  • Gold
Photo credits: pixabay.com

Precious metals lived up to their name as a crisis currency when the Russian army invaded Ukraine at the end of February. Gold rose by almost 10% in the first rush and marked a new high at USD 2,070.18 per ounce. Only USD 4 was missing to climb to a new all-time high in the current world reserve currency, the US dollar. Since then, the yellow metal has been correcting, but new highs should only be a matter of time in the long term. The importance of gold can currently be seen due to geopolitical tensions. The chairman of the Russian Energy Commission, Pavel Zavalny, proposed to pay for Russian oil and gas in "hard currency", i.e. in gold.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NEWMONT CORP. DL 1_60 | US6516391066 , MAS Gold Corp. | CA57457A1057 , BARRICK GOLD CORP. | CA0679011084

Table of contents:


    Ryan Jackson, CEO, Newlox Gold Ventures Corp.
    "[...] 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often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production.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.

    Full interview

     

    Gold as a crisis currency and inflation hedge

    The current times are difficult. First, the Corona pandemic, then the flooding of the markets with cheap money by the central banks. With the Ukraine conflict, we face an uncertain future concerning further inflation rates. The Fed wants to combat the high inflation rates with several interest rate hikes. However, whether it can achieve this without stalling the already sputtering growth engine seems at least doubtful. Therefore, a well-diversified portfolio with a gold share of at least 10% is more than reasonable. In addition to buying physical gold such as bars or coins, investors should add the largest gold mining producers, such as Barrick Gold or Newmont, to their shopping cart for the long term. On the speculative side, there are also exploration companies that have historically outperformed the market, assuming a long-term rise in the gold price.

    MAS Gold with solid development

    One company in this category is MAS Gold, which has a market capitalization of just EUR 10.19 million. The team around CEO Jim Engdahl, which has decades of experience, focuses on one of the best mining regions globally, the La Ronge greenstone belt in Saskatchewan. Over 1 million ounces of gold are still believed to be in the ground in the area, which is equipped with world-class infrastructure. Since the 1940s, exploration has outlined numerous gold deposits and showings, including past producers such as the Komis, Jolu, Star Lake, Contact Lake, Roy Lloyd, Golden Heart and Jasper mines.

    MAS Gold's current projects include the North Lake, Greywacke North, Bakos (Contact Lake) and Point gold deposits, and the historically defined Elizabeth Lake volcanic massive sulphide copper-gold deposit on four properties totaling 34,703.4 hectares. In addition, MAS Gold announced the final closing on the purchase of the 843-hectare Preview SW property from Comstock Metals, adjacent to Preview North.

    The Preview SW property is an ideal addition to MAS Gold's current portfolio of hub and spoke properties. The concept is that mineralized material from various satellite deposits will be consolidated into a centrally located processing facility at Preview North. Steven Goldman, who was appointed President and CEO of Comstock Metals Ltd. in 2019, has been appointed to the Board of Directors at MAS Gold as an independent director.

    With the Preview SW deposit acquisition, company leader Jim Engdahl is moving closer to his goal of expanding gold resources to more than 1 million ounces over the next few years through ongoing and planned drilling. A significant surprise could come from economic mineability analyses, which are expected to be published in a summary resource estimate in the coming weeks. The stock is trading at EUR 0.07 in Frankfurt.

    Historical event

    The world's leading gold company and producer of copper, silver, zinc and lead, Newmont, succeeded in doing what the gold price in USD was denied. The only gold producer listed on the S&P 500 surpassed its September 1987 high of USD 81.92 and set a new milestone of USD 83.72. Currently, Newmont has not yet been able to hold this level. Thus, there is a risk of a double top and a fall back to the level of around USD 61.00. In the long term, the title belongs in every gold portfolio, but in the short term, investors should only observe the title. In addition, Newmont will publish figures for the first quarter of the current fiscal year on Friday, April 22.


    Gold could shine again as a crisis currency, but a new all-time high was just missed on a dollar basis. In addition to physical gold, shares of gold producers such as Barrick Gold or Newmont and shares from the exploration sector such as MAS Gold are suitable for diversification.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    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

    Commented by Stefan Feulner on January 26th, 2023 | 20:00 CET

    Nordex, Manuka Resources, American Lithium - The profiteers of scarcity

    • Mining
    • Gold
    • Lithium
    • Commodities

    Besides the raging war in Ukraine, the discussion about the energy industry of the future accompanies us daily. It has already been decided that renewable energies such as wind power and photovoltaics will be the way forward. Likewise, the move away from the internal combustion engine to battery-powered electric motors is in the bag. But the implementation problems will be with us over the next few years. Where will producers get the raw materials that are already in short supply? Another critical issue is energy storage. Here, too, there is an increasing demand for a raw material that is currently produced primarily in Russia and China.

    Read