Close menu




March 15th, 2022 | 12:14 CET

Newmont, Ximen Mining, Barrick Gold - Deceptive calm

  • Gold
Photo credits: pixabay.com

Hopes of an imminent end to the war in Ukraine are causing the stock markets to turn upward again. The German stock market barometer DAX climbed above the psychologically important mark of 14,000 points. In contrast, the precious metals gold and silver, known as crisis currencies, came under heavy pressure. The various types of oil also lost a disproportionate amount of value, falling by more than 3%. The question is now whether the calming is only a flash in the pan or whether a new buying window will open in the short term, especially for the precious metals.

time to read: 2 minutes | Author: Stefan Feulner
ISIN: NEWMONT CORP. DL 1_60 | US6516391066 , XIMEN MINING | CA98420B2003 , BARRICK GOLD CORP. | CA0679011084

Table of contents:


    Gold stopped before the all-time high

    Last week, the gold price climbed to new highs in the euro, while in the US dollar, it was just under USD 4 short of topping the existing high of USD 2,074.70 per ounce of gold from August 2020 and thus generating a new buy signal. Since then, the crisis currency gold has dropped more than USD 100, the chart formation of the double top turned out to be a sell signal. A short-term test of the upward trend formed since September at currently USD 1,811 per ounce is within the realm of possibility as a first target. In the long term, gold continues to be seen as a protection against rising inflation, which we can expect more rather than less in Germany in the coming years.

    Trend reversal also for gold mines

    After a strong price performance in recent weeks, the shares of Barrick Gold rose from USD 17.50 to USD 26 at the high since the outbreak of the Ukraine crisis. The weekly candle also shows a trend reversal, which could result in a consolidation initially in the area around USD 21.50. If, on the other hand, the situation between the two neighboring countries escalates again, this should also have a positive impact on the Barrick Gold share. A new buy signal would result from a renewed breakout of the mark in the area of USD 25.37. At the world's largest gold producer Newmont, the starting point is similar. After rising from USD 54 to over USD 80 at the high, the value fell back below the critical support area at USD 75.20. The most likely scenario is a re-test of the short-term uptrend at USD 69.50.

    A lot of movement at Ximen Mining

    With a market capitalization of just under EUR 15 million, the exploration company Ximen Mining is still far from the valuations of Barrick Gold. However, the Vancouver, Canada-based Company is bustling with activity in terms of building up its precious metals portfolio, whose properties are each said to have a potential of several million ounces of gold.

    The Canadians own a 100% interest in the Amelia mine in British Columbia, the Brett epithermal gold project, and the Treasure Mountain Silver project, linked to the former producing Huldra silver mine. An option agreement is also currently in place for the Treasure Mountain Silver project. The Company recently acquired the past-producing Kenville gold mine near Nelson, British Columbia, which includes surface and underground mining rights, buildings and equipment. Previous drilling programs demonstrate the extent of high-grade vein structures. Management sees tremendous potential primarily because only 50% of the property has been explored to date.

    New Gold Inc. is also positive about Ximen Mining's portfolio and has joined Ximen Mining as an anchor shareholder with a 9.9% interest. Christopher R. Anderson, President and CEO of Ximen, commented, "Building strategic relationships with active partners in our community and jurisdiction is essential to Ximen's long-term goals. Ximen looks forward to deepening its relationship with New Gold. Their initial decision to invest in Ximen's projects and development plans is an excellent starting point." Given the project quality, the Company, valued at CAD 23 million, is worth a closer look.


    Now that there has been some calm in the Ukraine crisis and hopes for a ceasefire remain, gold stocks that have done well in recent weeks, such as Barrick Gold and Newmont, are correcting. Ximen Mining is already bottoming out and is not overvalued at the current level.


    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 Nico Popp on May 24th, 2022 | 10:20 CEST

    Monkeypox: risks and opportunities - Bavarian Nordic, Desert Gold, Varta

    • Gold
    • Monkeypox

    Supply chain problems, energy price chaos and now monkeypox? The list of disturbing news never ends. Investors need to keep a cool head in this market phase. Which construction sites are a permanent burden on the markets, where are only isolated problems still looming, and where are there possibly even surprising potholes? We have taken a close look at three stocks from different sectors. Let's go straight to the monkeypox!

    Read

    Commented by Armin Schulz on May 23rd, 2022 | 12:49 CEST

    BASF, MAS Gold, Plug Power - Shares with great turnaround potential

    • Gold
    • Hydrogen
    • Investments

    The Fear & Greed Index is down to 11, which means nothing other than extreme fear. And there are many areas causing headaches for investors. There is the Ukraine crisis, inflation, rising interest rates in the US, supply chain problems due to zero-COVID policies in China, and fear of recession. However, the S&P has formed a double bottom last week, which raises hope for a turnaround in the markets. Due to the crises, there are currently also opportunities again. We take a look at three potential turnaround candidates.

    Read

    Commented by André Will-Laudien on May 23rd, 2022 | 11:42 CEST

    Share sell-off: TUI, Barsele Minerals, Nel ASA - Buy or sell these stocks?

    • Gold
    • Investments
    • Hydrogen
    • travel

    The sell-off in equities entered a new round in May. With rising inflation, disrupted supply chains and uncertain energy supplies, the risk for investors is increasing as interest rates are now exploding to unprecedented levels in parallel with the highly volatile environment. The 10-year yields on government bonds in Germany and the USA have moved up from near zero to 1.14% and from 1.5% to 3.12%, respectively. Whenever there was a noticeable rise in interest rates for bonds, things became critical on the stock market. At the moment, this is weighing on technology stocks in particular. The DAX and S&P have already lost 20% in the current correction phase. After initial losses, gold is now accelerating. Where are the opportunities for investors?

    Read