Close menu

August 18th, 2021 | 13:24 CEST

Newmont, Sitka Gold, Royal Dutch Shell - Commodity prices to rise further

  • Gold
Photo credits:

Research conducted in July with 1,000 European companies found that all respondents expect commodity prices to continue to rise. In part, these price increases we have seen over the past year are due to the Corona Pandemic. During the lockdown, production of raw materials was shut down, and when demand suddenly increased noticeably, they were not prepared for it. Supply chains are still disrupted today. But thanks to rising vaccination rates, the economy is picking up again in many parts of the world. Demand for oil remains high in the long term, and gold is still in its long-term uptrend despite the short-term sell-off.

time to read: 4 minutes | Author: Armin Schulz
ISIN: NEWMONT CORP. DL 1_60 | US6516391066 , Sitka Gold Corp | CA8606471065 , ROYAL DUTCH SHELL A EO-07 | GB00B03MLX29

Table of contents:

    Newmont - Currently in a downward trend

    Newmont is the largest gold producer globally, so the stock has been dragged down by the falling gold price. When the sell-off in gold began on August 6, the share held up reasonably well in relation. On the flip side, gold's rally of more than USD 100 passed the stock by with just as little impact. Operationally, the Company is very well positioned, especially due to its copper production. The increasingly valuable metal accounts for 25% of sales.

    The figures for the second quarter showed a significant year-on-year increase. A net profit of USD 640 million was achieved compared to USD 412 million in the previous year. Sales increased by more than 29% to USD 3,065 million. The main reason for this is the significant increase in gold mining of over 15%. On average, one ounce of gold was sold at USD 1,823. For the year, management expects production of 6.5 million ounces. The cost per ounce is currently USD 970.

    The stock has currently formed a downtrend, breaking two important marks on the way down. The downtrend was activated with the break of the USD 60.89 mark. The next resistance at USD 59.26 was also broken, and so a test of USD 54.18 could be imminent. For dividend hunters, the current dividend yield of about 3.7% may already be attractive. We see Newmont as well-positioned in the long term.

    Sitka Gold - Many exciting projects

    Sitka Gold Corp. is a Canadian explorer focused on the development of mineral deposits, mainly gold. The Company owns five different projects that host gold, silver, copper and zinc; these are located in Canada and the United States. Drilling programs are currently underway in Nevada and the Yukon. The RC Gold Project in the Yukon is 372 sq km in size, and nine drill holes totaling 3,494 m have been completed there since June. The drilling is intended to expand the area of gold deposits discovered in 2020. One is currently waiting for the results from the laboratory. The second project in the Yukon is called OGI and contains silver, zinc and gold.

    The Alpha gold project in Nevada is 404 hectares in size and will be further explored after initial results in May this year. The first drill hole has already been completed and sent to a laboratory for assaying. A step-out hole is currently being drilled on this property to test high-grade zones of the gold system further. Arizona is home to the Burro Creek Project, a historic silver and gold mining district. Initial drilling was completed in 2020 and encountered up to 17.55 g/t gold and 33 g/t silver. Currently, the Company is trying to obtain permits for further drilling. There is also the Coppermine River Project in Canada. There, high-grade copper samples with up to 41.54% were discovered.

    Management has already proven with Tundra Copper that they know how to build a company with success. At a current share price of CAD 0.15, the Company is favorably valued at a current good CAD 8.5 million. The high for the stock this year was CAD 0.34. When the new shares from the last capital increase became tradable, selling pressure arose, but this seems to have subsided. Interested shareholders should work with a limit, as the spread is relatively high.

    Royal Dutch Shell - Currently favorably valued

    Royal Dutch Shell (RDS) is having a hard time at the moment. First, the verdict in Amsterdam, forcing the Company to do significantly more to protect the climate. Then the payment of USD 110 million to settle a long-running dispute over an oil spill in Nigeria. On August 4, the price of oil fell below USD 70; in addition, fears of Corona are again circulating as incidences in many industrialized countries are on the rise again. That would mean a weakening of the economy and thus the demand for oil.

    In China, an entire port was closed after a Corona spill. With its hunger for resources, China is always a barometer for overall oil demand. Nevertheless, it must be noted that oil prices above USD 50 are sufficient for oil multinationals like RDS to make a profit. In contrast to its competitors, the Company is currently favorably valued. Analysts expect a price-earnings ratio (P/E) of 8 this year, and the last time the stock had such a low P/E was during the financial crisis.

    The stock is running sideways in the sliding zone that formed between early February and mid-March. On July 20, the share managed to avoid falling below the 200 moving average. For the chart to brighten up, the share price would have to close above EUR 17.82. For dividend lovers, the dividend yield of over 4% is quite attractive.

    As long as there are no further lockdowns in the major industrialized nations, the economy will recover. Oil is still needed, and so Royal Dutch Shell will deliver a very good result this year. In the case of gold, there is also inflation, which could create more demand for the precious yellow metal. As an investor, you can go for a top dog like Newmont with a dividend or speculatively go for an explorer, like Sitka Gold, where there is a chance that the value will double in a short time.

    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 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

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author

    Related comments:

    Commented by Fabian Lorenz on March 30th, 2023 | 13:19 CEST

    Panic at Vonovia and Plug Power - Barrick Gold and Tocvan Ventures shine

    • Mining
    • PreciousMetals
    • Gold
    • fuelcell
    • RealEstate

    Concrete gold? Real estate stocks are currently in an absolute panic. The share of Germany's industry leader Vonovia recovered somewhat yesterday, but an end to the downward slide is not in sight. Analysts are also skeptical. The range of price targets is broad, and there is already speculation about an (emergency) capital increase. So buy or sell? The Plug Power share could also use some buying. From a chart perspective, the situation is critical. Fuel cells for smaller forklifts are now being offered. The situation is different at Barrick Gold. The group's share is about to break out to the upside. Price targets for gold of USD 3,000 provide for a good mood. Tocvan Ventures should also benefit from this. The gold and silver explorer published news about its project in Mexico yesterday, and the stock is waking from its slumber - there appears to be further air to the upside.


    Commented by André Will-Laudien on March 29th, 2023 | 08:30 CEST

    Copper massively missing - what to do? Nordex, Orestone Mining, JinkoSolar - Greentech shares in the focus of investors

    • Mining
    • Copper
    • Gold
    • GreenTech
    • Technology

    The energy transition in Europe can only work if critical metals such as copper, lithium or nickel remain available. For an almost complete electrification of road traffic from 2035 onwards, quantities of copper 3 to 7 times the current consumption are required. At present, however, hardly any new mines are coming on stream. It will therefore be exciting to see which copper source the EU will soon tap in order to supply industrial sites with the coveted metal. So the EU Council of Experts should urgently look for a few mining consultants and have the current decisions verified by the Fairy Tale Department. How do we manage it after all?


    Commented by Stefan Feulner on March 27th, 2023 | 09:31 CEST

    American Lithium, Blackrock Silver and Standard Lithium - Lithium is increasingly scarce

    • Mining
    • Silver
    • Gold
    • Lithium
    • Uranium

    Lithium-ion batteries are the most common battery technology for electronic devices, electric vehicles and energy storage due to their high energy density and long life. In addition, the critical metal is used in the aerospace industry, medical technology and metal processing. Demand is rising dramatically, while supply can hardly keep up, mainly due to the mobility shift. Producers of the scarce commodity will undoubtedly emerge as the beneficiaries of this overhang in the future.