December 8th, 2020 | 10:02 CET
Nio, Desert Gold, Bayer - Don't miss these opportunities!
Table of contents:
Gold on the road to recovery
Gold maintained its essential support zone at USD 1,800.00 last week and is currently trading at USD 1,869.00. The correction, which has been underway since August, did not stop at gold mine stocks either. Especially in this sector, there are good opportunities at the moment to invest favourably in promising companies which, with a full pipeline, should be among the winners in the next upswing. One of these exciting Companies is Desert Gold, which focuses on gold mining in the West African country of Mali. Mali is rich in mineral resources and the third-largest gold producer in Africa. Particular focus is currently on the 410 sq km SMSZ project, which extends over approximately 38 km of the productive Senegal-Mali shear zone.
A project with great potential
Last week marked the long-awaited start of the most extensive exploration program in the Company's history. According to management, the SMSZ project in western Mali is planned to drill over 20,000 metres and additional drilling for a further 20,000 metres if required. The SMSZ Project is one of the largest gold exploration projects in West Africa. Along strike, the main Desert Gold project is connected to five significant mines to the north and south. These include mines of the big players such as B2 Gold, Barrick Gold and Allied Gold.
Desert Gold's Chairman, Jared Scharf, is optimistic about the future: "I'm very pleased to begin this work season fully funded with a highly experienced operating team on the ground. The SMSZ project is one of the largest gold exploration projects in West Africa and is ideally situated along the prolific Senegal Mali shear zone. This project will be our main focus this year as it hosts a myriad of highly prospective, advanced and early-stage targets in the right regional setting. Looking forward into 2021, we expect consistent news flow throughout the year as results are published while we continue developing new and existing targets."
This positive news could also be the starting signal for the share price. After a high at CAD 0.35, Desert Gold's share price corrected to CAD 0.12. After the announcement last week, the share price was able to move back towards CAD 0.20. With further positive news flow, enormous fantasy is in the paper of Desert Gold.
On the right track
The latest news from Bayer AG was consistently positive and gives hope for a comeback of the former DAX leader. Only the ongoing legal dispute regarding a settlement in the glyphosate affair puts everything else in the shade. The Leverkusen-based Company is strengthening its pharmaceuticals business with the US biotech Company Atara Biotherapeutics. Through this collaboration, the Group is entering the field of so-called CAR-T cell therapies and, among other things, securing access to a promising cancer immunotherapy from Atara.
Depending on how particular development, approval and marketing objectives are met, Atara may receive payments totalling USD 610 million. The analysts of Deutsche Bank acknowledge the efforts of Bayer's management in recent weeks and confirm their recommendation to 'buy' the share with a price target of EUR 62.00.
Where is the journey heading?
The Chinese electric carmaker Nio has recently had to make some significant corrections. The stock market star that was celebrated only a short time ago lost more than 20% of its value. The reasons once again lie in the still smouldering conflict between the USA and China. Last week, the House of Representatives passed a bill that should make the delisting of the Chinese stock market giants like Alibaba and Nio possible.
Should this be a sabre-rattling of the still active government around the outgoing President Donald Trump, the Americans would once again shoot themselves in the knee. The delistings would lead to massive capital outflows from the United States. Currently, Nio is fighting with the critical support at the equivalent of EUR 35.00. The fundamental outlook remains positive. We consider the occurrence of a delisting very unlikely.
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