01. July 2021 | 13:43 CET
Nordex, Osino Resources, Volkswagen - The correction as an opportunity
Both cryptocurrencies and precious metals corrected sharply in recent weeks. While the negative tweets of Elon Musk and the trading bans and stricter regulations in China were cited as reasons for Bitcoin, Etherum & Co, it is the fears of possible early interest rate hikes for gold and silver. In the short term, there should still be some correction potential, also from a chart perspective. In the long term, the lights are green for a rising gold and silver price.
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ISIN: NORDEX SE O.N. | DE000A0D6554 , OSINO RESOURCES CORP. ON | CA68828L1004 , VOLKSWAGEN AG VZO O.N. | DE0007664039
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Growth before inflation
After discussions of several Fed members to raise interest rates earlier than expected due to rising inflation got out of hand, the head of the US Federal Reserve, Jerome Powell, calmed the minds. He said there was currently no rush to respond preemptively to the market's fear of inflation by raising interest rates. The FED sees the sharp rise in consumer prices as a temporary phenomenon triggered by the recovery after the Corona lockdowns. Thus, the monetary policy environment remains optimistic for the gold price in the long term. From a chart perspective, the price quoted at USD 1,757 at the start of US trading yesterday should nevertheless test the low for the year at USD 1,680 once again. It is an opportunity to position oneself anti-cyclically and to include promising mining stocks in the portfolio in addition to physical gold.
Drilling programs better than expected
The gold exploration Company Osino Resources should be on your radar. In addition to the promising Twin Hills project in central Namibia, management has shined in the past with the sale of the Otjikoto mine to B2 Gold for CAD 180 million. Particularly interesting is the point that the Otjikoto mine is located in the direct vicinity of Twin Hills. Thus, one assumes geological parallels between the two exploration projects.
In total, Osino Resources has approximately 7,000 km² in Namibia's prospective Damara sedimentary mineral belt along strike from the producing Navachab and Otjikoto gold mines. The main Twin Hills project is located just 20 kilometers from the largest gold deposit in southern Africa outside the Navachab Wits Basin. Due to its developed infrastructure and its politically and legally stable situation, Namibia is considered the most mining-friendly country on the continent.
There were further positive drilling results to report in early June. The 14 brownfield targets identified in the 2020 IP survey have been drill tested, 4 of which have returned significant gold mineralization ranging from 0.79 g/t to 1.96 g/t. Since March, the 25,000 m drill length program has completed 63 holes, totaling 18,549 m of drilling.
Overall, Osino Resources hopes to add significantly to its initial April estimate of 430,000 ounces at 1.00 g/t gold (indicated) and 1.47 million ounces at 1.08 g/t gold (inferred). In their report, analysts at Sprott Equity Research are confident that the currently planned 75,000 m drill program should bring additional high-grade shoots to surface and assign a price target of CAD 2.55 with a "buy" rating. The current price of Osino shares is CAD 1.32.
Bottom formation completed
Although the share of the wind turbine manufacturer Nordex was slightly in the red yesterday, the bottom formation has been successfully completed in recent days. While the stock still marked a low at EUR 16.59 in mid-June, it broke through the broad resistance area at EUR 19.60, also driven by positive news. Yesterday, it was almost enough to break through the rising 200-day line at EUR 20.88, but due to the overbought condition, the stock ran out of steam in the course of trading. A setback to the breakout level in the area of EUR 19.60 would be pretty healthy to then aim for the next price target at EUR 22.
On the news side, Nordex was again able to shine with an order from Brazil. Thus, Nordex will deliver 70 turbines with a total capacity of 399 megawatts for a wind farm in the northeast of Brazil in Piaui, plus a service contract for maintenance and repair over 5 years. The turbines are to be erected in early 2023.
Dieselgate puts the brakes on electric euphoria
What the glyphosate trial is for Bayer, Dieselgate is for Volkswagen. In the legal dispute over further high fines in the diesel scandal, they have suffered a defeat at the hands of the Ohio Supreme Court. Here, it was ruled that the state can pursue penalties that go beyond those already agreed upon. The response from Wolfsburg followed promptly. Since the Volkswagen Group is of the opinion that fines and compensation have settled claims by individual states in the emissions scandal that VW has already had to pay for violations of the nationwide Clean Air Act, the ruling would be taken to the US Supreme Court, America's highest court.