Close menu




July 12th, 2021 | 13:36 CEST

NIO, Kainantu Resources, BASF - Bright prospects

  • Gold
Photo credits: pixabay.com

The first half of the 2021 stock market year is over, and the stock market indices continue to march from high to high. While some market participants were hoping for a stronger correction after the Corona rally, they have been disappointed so far. The FED has now laid the foundation for further rising prices. It sees the rising inflation, which is currently at 5% in the USA, as temporary. In favor of growth, interest rates will remain at historic lows for the time being. In addition, the bond-buying program of the monetary guardians continues unabated - a feast for the stock markets.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: NIO INC.A S.ADR DL-_00025 | US62914V1061 , Kainantu Resources Ltd. | CA48301H1073 , BASF SE NA O.N. | DE000BASF111

Table of contents:


    Jared Scharf, CEO, Desert Gold Ventures Inc.
    "[...] Our SMSZ project is the largest contiguous land package of any exploration company in the region at 400km2 and overlays a 38km portion of the prolific Senegal Mali Shear Zone. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.

    Full interview

     

    Best conditions

    High government debt, historically low interest rates and continued money printing by the central banks in the face of rising inflation are also the breeding ground for a long-term price increase on the gold market. With the presentation of her monetary policy strategy in the middle of this week, ECB President Christine Lagarde impressively demonstrated that the negative interest rate policy is likely to accompany us for longer than expected. The inflation target was set at 2%; previously, it had been just below 2%. However, it is important to note in this context that the ECB, similar to the FED, also wants to accept a slightly higher price increase. That means that the time for a first interest rate hike will be pushed back unnoticed.

    Due to negative interest rates, the money in the savings account is becoming less and less. Gold serves as a means of wealth preservation, both through purchasing bars or coins and gold mining shares. In addition to the major gold producers, one should also take a closer look at second-tier exploration companies. These are, of course, more speculative but offer leverage to a rising gold price.

    Profiting from the big players

    Since its independence in 1975, the island nation of Papua New Guinea (PNG) in the Asia-Pacific region has been one of the world's most important mining countries. The mining of gold, copper and nickel, and crude oil and gas production is responsible for 86% of exports and contributes 26% to the gross domestic product. The government promotes the mining and oil and gas industries and, through long-standing stable laws, facilitates access to the country's natural resources for global giants from the precious metals industry and the oil and gas sector such as ExxonMobil and TOTAL.

    PNG is not in the headlines like other countries due to its high gold deposits, but the country is home to some of the best-stocked deposits in the world. In addition to Newcrest Mining's Lihir Mine and Barrick Gold's Porgera Mine, both of which produce hundreds of thousands of ounces of gold annually, K92 Mining's Kainantu Mine hosts a measured and indicated 1.3 million tons of gold and had the fourth-highest production level in the world in 2020.

    Near the K92 Mine, one of the highest-grade deposits in the world, Kainantu Resources has two prospective projects. KRL South covers 597 sq km and is located in the Eastern Highlands province, approximately 30 kilometers from K92 Mine. The project is located on a large, unexplored goldfield bisected by the Kainantu fault line, a geological structure that also hosts K92's flagship project.

    In doing so, Kainantu Resources was able to identify four "ring features" on the property, geological structures that may indicate shallow pockets of gold in igneous rocks. These form the core of the planned drilling program, which identified six prospects and collected soil samples. At one of these ring features, Tirokave, the Company has already observed occurrences of visible gold in pan samples. Over the past two years, Kainantu has collected over 2500 samples, consistently confirming the property's potential - and its possible similarities to the high-grade K92 mine.
    Now the Company is conducting a much more extensive sampling campaign to discover targets at Tirokave that will serve as the basis for an upcoming drill program.

    KRL North is smaller at 129 sq km, located on the central Bilimoia mineral field and directly adjacent to K92. A field mapping and sampling program is planned on the property this year. Last month, Kainantu Resources secured the May River project in the Frieda River copper and gold district. The area consolidates three adjacent concessions and is less than 15 km from the well-known Frieda River project owned by PanAust.

    The experienced management team has a track record of developing gold projects in the Asia-Pacific region. It is supported by Asia Pacific Energy Ventures, which has many years of operational experience in PNG and helped Kainantu Resources acquire the two world-class deposits despite strong competition, particularly from Chinese investors. In the long term, the Canadian Company aims to build a high-quality Asia-Pacific junior gold mining company. To date, projects are at an early stage, but the location and geology alone promise great potential and high long-term value growth.

    NIO goes global

    At the "Power Day" held by Chinese electric car manufacturer NIO, the global strategy was announced for the next few years. More than 4,000 battery swap stations are to be installed by 2025, and 1,000 outside China. By the end of this year, the Company expects to have 700 completed swap stations. The advantage of changing the battery is the time factor. The driver merely swaps the battery and escapes a longer charging time at the e-fueling station.

    The charging and battery swap systems are to be offered not only for electromobility but also for other industries. NIO has cleared one hurdle for the already announced European expansion by receiving the TÜV certificate. Now the battery exchange stations and chargers can be both operated and sold in all EU member states.

    Forecast increased

    Higher demand, especially in the plastics business, and increased prices prompted BASF's leadership to raise its full-year forecast once again. Full-year sales are expected to reach EUR 74 billion - EUR 77 billion in 2021, up more than EUR 6 billion. The estimate for EBIT was raised from EUR 5.0 billion - EUR 5.8 billion to now EUR 7.0 billion - EUR 7.5 billion. The revised forecast is justified by the strong business performance in the first half of the year. However, the increase is only tenable if there are "no severe restrictions on economic activity as a result of measures to combat the Covid-19 pandemic," the press release states.


    The strategy of central banks worldwide to promote growth rather than fight inflation continues to bode well for both equity and precious metals markets. BASF is poised to break through its high for the year at EUR 73. At NIO, the signs are pointing to consolidation despite good fundamental reports. The share of Kainantu Resources offers itself as a speculative portfolio addition in the long term.


    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 news.financial. 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

    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 Stefan Feulner on May 18th, 2022 | 11:37 CEST

    Barrick Gold, Desert Gold, Newmont - Golden times

    • Gold

    The situation with gold is more than paradoxical at the moment. On the one hand, the Ukraine war is raging with the threat of spreading to other countries. On top of that, inflation rates are jumping to levels the world has not seen in more than 30 years. As the icing on the cake, the Zero-Covid lockdowns in China are hampering supply chains that are already broken. Gold should therefore explode. However, the reality is different. The precious yellow metal is currently struggling to reach the USD 1,800 per ounce mark. However, the crisis currency is likely to prevail in the long term and pave its way above new highs.

    Read

    Commented by Fabian Lorenz on May 12th, 2022 | 11:12 CEST

    BioNTech, BYD and Desert Gold: Shares for the rebound

    • Gold
    • Electromobility
    • Biotechnology

    Is the rebound coming? After the heavy price losses of recent days and weeks, the market seems ripe for a countermovement. However, this would require a little more volume in the market. But then, especially companies that have not disappointed operationally should profit. BioNTech, for example, belongs to this group. The Company has published convincing figures, and analysts see up to 50% price potential. BYD's share price should also pick up speed again. Finally, the rapid shift to electric pureplay seems to be succeeding and HSBC has raised the price target. Gold was not a safe haven in the current correction. But it is worth looking at bombed-out stocks here as well. Desert Gold Ventures is one of them. The explorer has started a new drill program and secured financing.

    Read

    Commented by Armin Schulz on May 6th, 2022 | 10:43 CEST

    Barrick Gold, Edgemont Gold, Rio Tinto - Are gold stocks taking off again?

    • Gold

    With the start of the Ukraine crisis, the gold price skyrocketed, but since March 8, we find ourselves in a consolidation. The 200-day line is currently holding, and it could go up again from here. But let's look at the reasons for the weakness in the gold price. On the one hand, there is the strong dollar, which naturally puts pressure on the gold price, and on the other hand, bond yields in the US are climbing again. After the FED announced on May 4 that it would not raise interest rates by more than 0.5 percentage points, which was originally feared, the gold price jumped again. Demand for physical gold remains high. We look at three companies in the gold sector.

    Read