16. June 2021 | 11:25 CET
Nordex, Theta Gold Mines, SAP - Decision day!
The more rapid than expected rise in inflation is causing increasing concern among market participants. The head of the US Federal Reserve, Jerome Powell, repeatedly pointed out that the FED wants to stick to the loose monetary policy despite the currently growing price increases. Tonight, the Federal Open Market Committee meets. According to reports, more and more members favor an earlier rate hike, which would have serious consequences for the economy and the stock market.
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Theta Gold Mines - Many irons in the fire
Rising interest rates would be poison for heavily indebted governments and corporations in the current environment. The trillion-dollar stimulus packages put in place by US President Joe Biden to jumpstart the economy are based on the assumption that interest rates will remain at zero, as they are right now. The majority of experts see the inflation that is currently skyrocketing as temporary and therefore do not expect the central banks to act quickly concerning tapering or even interest rate hikes. The status quo with high inflation, growing government debt and meager interest rates is the breeding ground for a further increase in the price of gold.
Due to the calls for an increase in key interest rates, the price, which almost broke through its key resistance level at USD 1,920 to the upside after the low at USD 1,680, fell below its support at USD 1,875 at the beginning of the week. The sell-off has left the price of the precious metal at USD 1,864. Danger threatens should the support level at USD 1,848 topple. Should this prominent mark also not hold, a decline to the area around USD 1,810 would be the logical consequence. On the upside, the chart picture would only brighten up again if the USD 1,890 and then consequently the USD 1,920 mark were exceeded. Due to the fundamental framework conditions, we see a further short-term correction in the uptrend in the current development and expect prices above the USD 2,000 threshold before the end of this year.
The correction that has been underway in the precious yellow metal since August 2020 has caused shares of gold producers and exploration companies to correct sharply. As a result, many companies have attractive entry opportunities with the prospect of disproportionate price gains. Theta Gold Mines is interesting for several reasons. On the one hand, the board of the exploration Company includes top managers with decades of mining experience who have held positions at big names such as Harmony Gold or Jupiter Mines. Secondly, Theta Gold's properties offer enormous potential. The Company owns over 62,000 hectares of gold mining claims covering most of the Eastern Transvaal Gold Fields, approximately 350 km east of Johannesburg. By targeting high-grade, near-surface gold reef deposits at the Pilgrims Rest and Sabie Gold Fields, management plans to produce over 350,000 ounces of gold through modern mining and gold processing techniques.
In total, Theta Gold Mines owns 43 historic mines. In order to generate a sustainable cash flow, the development of initially three mines in underground mining will be started step by step. Theta Gold Mines plans to mine 160,000 ounces of gold per year and start production in 2022. Highlighted are the favorable production costs, which range at USD 950 per ounce of gold. The stock is traded on the Nasdaq OTCQX Best Market and Frankfurt. The shareholder structure consists of more than 60% institutional investors. Currently, the stock is trading at USD 0.18. A study by Zacks Small Cap Research sees a fair value of USD 0.69 for the Company.
A detailed interview with the Chairman of Theta Gold Mines, Bill Guy, can be read here:
Step in the right direction
A liberating blow for wind turbine manufacturer Nordex or just a short flash in the pan? At least the share price, which marked a new annual low of EUR 16.59 the previous day, was able to put the brakes on its downward spiral. The reason for this was the Company's announcement that they are about to receive an order in Australia, which is to be signed and sealed in the next few weeks. The negotiations, which are in the final stages, involve the delivery and installation of up to 180 Nordex N163/5.X Delta4000 series wind turbines for the MacIntyre wind development site of Spain's Acciona Energia in the Australian state of Queensland. The total capacity, which is scheduled to go into operation in 2024, is around 1,026 megawatts.
From a chart perspective, there is still no all-clear to report. The follow-up purchases already weakened again yesterday. Should the price again target a new low for the year, a slide into the support area initially of EUR 14 is not impossible.
SAP and TeamViewer intend to pursue joint paths to accelerate the digital transformation in the industry, including joint marketing activities, a broader offering, and customized solutions. Accordingly, TeamViewer will be integrated into the SAP program. In addition, the Frontline software suite is to be integrated into SAP solutions. The Walldorf share price is close to a buy signal at EUR 121.44. In addition, at EUR 122.88, the gap torn by the disappointing quarterly figures would be closed.