02. July 2021 | 11:18 CET
Nordex, Triumph Gold, Infineon - Just keep calm
"First, things turn out differently, and second, things turn out differently than you expect." This saying by German poet and caricaturist Wilhelm Busch applies more than ever to the capital markets right now. Why is the Bitcoin falling, why is TUI not rising despite the travel restrictions easing, and why is the gold price not taking advantage of the fundamentally good conditions to attack the high of August last year? The answer is again found in a quote from the Chinese philosopher Confucius: "There is strength in calm."
time to read:
ISIN: NORDEX SE O.N. | DE000A0D6554 , TRIUMPH GOLD CORP. | CA8968121043 , INFINEON TECH.AG NA O.N. | DE0006231004
"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Taking advantage of the correction
After the substantial losses, which led the gold price due to rising interest rate fears from USD 1,916 within a few days to the support zone at USD 1,755, this initially made a stop and is currently trying to start a recovery. The precious metal is presently quoted at USD 1,777. Next resistances to the top would be USD 1,785 and USD 1,798. From a technical point of view, however, it must be acknowledged that the trend is likely to be directed downwards for the time being due to the strong sell-off and the break of several support lines. A further undershooting at USD 1,755 would result in the next target at the USD 1,720 mark. Should this not hold, a test of the low for the year at USD 1,680 would be possible.
The short-term downward movement offers investors good opportunities to establish or expand positions in physical gold and promising gold mining stocks. The statement from the head of the US Federal Reserve, Jerome Powell, that there is currently no rush to react preventively to the market's fears of inflation by raising interest rates is the foundation for a long-term rise in the price of gold. Soon, too, it will probably be difficult for the FED to sacrifice growth in favor of inflation.
Noble shareholder circle
Since the gold price peaked at USD 2,069.70 last summer, it has since entered a correction. Despite excellent fundamental results, shares of gold mine producers and explorers also suffered disproportionately. Thus, the paper of Triumph Gold corrected from CAD 0.48 to currently CAD 0.20. In contrast to the chart, the Company's performance is pointing upwards, which has not escaped the attention of industry giant Newmont, which holds a 12.8% stake, and China's largest mining group Zijn Mining (9.8%).
Triumph Gold owns a large-scale land package in the mining-friendly Yukon. The cream of the crop is the wholly-owned Freegold Mountain project in the Dawson Range copper-gold belt, which has excellent infrastructure and is producing the three NI 43-101 compliant mineral deposits of Nucleus, Revenue and Tinta Hill. The project covers an extensive area of the Big Creek fault zone, a structure directly associated with epithermal gold and silver mineralization and gold-bearing porphyry copper mineralization. The Big Greek property, which is believed to host gold and copper, consists of 258 contiguous quartz mining claims in Yukon's Whitehorse Mining District.
In mid-June, the start of the already funded exploration program for the full year 2021 began. Phase I includes diamond drilling for 8,000 meters, ground geophysical surveys for 100 line kilometers, soil sampling for 35 line kilometers and surface trenching. The program intends to add new suspected resources and upgrade the inferred resources of the Nucleus and Revenue deposits to indicated resources and discover and develop zones of mineralization in target areas outside the deposits. In advance, the comprehensive multi-phase exploration program has been established through a targeted review and re-creation of the 3D model of the Freegold Mountain project. If the exploration program is successful, the old highs from 2020 should be targeted soon.
Nordex shocks investors
On Wednesday, wind turbine manufacturer Nordex was able to shine with another major order from Brazil. 70 turbines with a total capacity of 399 megawatts are to be delivered to a wind farm in the northeast of Brazil in Piaui. The share reacted positively so that the 200-day line at EUR 20.88 yesterday was almost broken. However, this was then followed by a shock for investors. The share took a significant drop of nearly 12% to the support at EUR 18.
The reason was the announcement of a capital increase. By issuing 2.7 million new shares for EUR 13.70 each, the Hamburg-based Company wants to create more financial leeway and thus strengthen its balance sheet. From an entrepreneurial point of view, this is a wise decision. At the current level, we see good long-term opportunities to build initial positions. In the short term, however, the share price should not fall significantly below the low of EUR 16.90.
With tailwind from the US, Infineon continues to push towards the high for the year at USD 37.30. Competitor Micron Technology once again exceeded the already ambitious analyst estimates. Due to the trend towards home offices caused by the Corona lockdowns, the US chipmaker's third-quarter sales rose 36% year-on-year to USD 7.42 billion. Earnings per share were USD 1.88. Analysts' forecasts averaged USD 1.72 per share. For the fourth quarter, Micron expects sales of USD 8.2 billion. That was also higher than the experts' forecasts, which were based on USD 7.87 billion.