February 22nd, 2021 | 07:20 CET
Newmont Mining, Osino Resources, Palantir - It is time!
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"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Undisputed top dog
In contrast, gold has corrected to currently USD 1,780.00 from its peak last August of USD 2,069.70. From a chart perspective, there is still room to move to the target range between USD 1,680.00 and USD 1,720.00. Investors should at least look to get in position to build up initial positions in the gold sector. If considering an investment in gold mines, one cannot avoid the industry leader Newmont Mining. Last week, the world's largest gold producer underlined their leadership once again with outstanding figures. In the fourth quarter alone, net income more than doubled to USD 856.00 million compared to the same period last year. Earnings per share thus rose from USD 0.50 to currently USD 1.06.
In the full year 2020, which suffered from the Corona Crisis, the Company achieved an absolute record result despite reduced production of 6%. Here, net income totaled USD 2.14 billion, or USD 2.66 per share. In 2019, Newmont had earned USD 970.00 million, or USD 1.32 per share. The Company naturally benefited from the rising price of gold, which topped USD 2,000 last summer.
Significant dividend boost
Due to the excellent quarterly figures, investors could rejoice because of the rising share price and increased quarterly dividend. The board announced that the quarterly dividend for the fourth quarter of 2020 would be increased by 38% to USD 0.55. This dividend is the highest of any player in the industry. With USD 5.5 billion in cash and USD 8.5 billion in free money, the Denver, Colorado-based Company should be looking at more acquisitions in the coming years. Currently, the gold giant has a total market value of USD 45.35 billion. The share has corrected since the high in August of USD 72.22, to now USD 52.22. If one assumes another gold price correction to around USD 1,700, the USD 52.50 area offers attractive long-term entry opportunities.
Enormous development opportunities
Still significantly smaller, but no less impressive is the share of Osino Resources. The Canadian junior explorer focuses on the acquisition and development of gold projects in Namibia. With more than 17 exclusive drilling licenses, Osino Resources has enormous potential. They are all located in Namibia's prospective Damara Belt's central zone, mainly near and along strike from the producing Navachab and Otjikoto gold mines. The Canadians' flagship project is Twin Hills Central. It lies southwest of the high-grade Otjikoto mine and has been defined to date as 1.3km in length. The gold grade per tonne at the Otjikoto mine is still double that of Osino Resources' Twin Hills project. However, Osino Resources' advantage is that the current gold discoveries are already suspected over an area twice as large.
On the right path
Boron results published at the end of January show that relative successes to the mine located in the neighborhood are likely. For example, individual drill intercepts over 50m and 81m achieved above-average results of 1.75 g/t and 1.74 g/t gold, respectively. Analysts at Echelon Capital Markets already rated Osino as a "top pick" for the fourth quarter of 2020. The price target was set between CAD 2.30 and CAD 2.45. The current price is CAD 1.11. Chart-wise, the support line has been torn due to the recent market correction. Good support zones are offered between CAD 0.90 and CAD 1.00. In the long term, there are excellent growth opportunities for this stock. In addition, one cannot rule out a takeover by a larger market player.
Buy the dip
The exciting story around the data analysis Company Palantir Technologies continues. After the Company came up with outstanding sales figures last week, but an unexpected quarterly loss, the share price fell sharply. The reason, apart from the missing numbers in the black for the fourth quarter, was the Lock up end for the old shareholders on Friday past. Thus, the share price reached at least its current low on Thursday, only to close trading on Friday with a gain of more than 16% at the current price of USD 29.00.
Many market participants, including institutional players, took advantage and used the Dip to enter partially in larger numbers. The investment Company ARK Invest, led by the well-known investor Cathie Woods, expanded its exposure on Thursday by 5.3 million Palantir shares. In addition to investors, there are also increasing positive voices from analyst firms. Goldman Sachs upgraded the share from "neutral" to "buy" after the figures and raised the price target to USD 34.00. From Monday onwards, after all the turbulence, the day-to-day business should return to the foreground. The management set the target of achieving no less than USD 4.0 billion in annual sales by 2025. Should this be achieved, the share prices of the past few weeks were indeed a gift.
Conflict of interest
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