December 29th, 2021 | 10:23 CET
Osino Resources, Barrick, First Majestic - Winners for 2022!
Historically, the current gold price level of a good USD 1,800 per troy ounce can be considered high. This year, gold producers were able to post record profits. In the medium term, many things point to rising precious metal prices. Decisive framework conditions are the low-interest rate level, inflation, economic growth, the condition of the stock markets, the level of gold reserves, and the long-term production outlook.
time to read: 3 minutes | Author: Carsten Mainitz
ISIN: OSINO RESOURCES CORP. ON | CA68828L1004 , BARRICK GOLD CORP. | CA0679011084 , FIRST MAJESTIC SILVER | CA32076V1031
Table of contents:
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
Tag cloud
Shares cloud
Osino Resources - Breakthrough in 2022
After successfully advancing the Twin Hills gold project this year, Osino recently concretized its next steps. The Company plans to release a new technical report with an updated mineral resource estimate in the second quarter of 2022. This Pre-Feasibility Study (PFS) will enable an improved assessment of the project's economic viability. To date, only a Preliminary Economic Assessment (PEA) in accordance with Canadian Standard NI 43-101 is available for the open pit project. According to the April 2021 PEA, the project has an estimated gold resource of 0.43 million ounces at 1.00 g/t in the indicated category and 1.47 million ounces at 1.08 g/t in the inferred category at a 0.5 g/t cut-off grade.
A bankable feasibility study is expected to be completed as early as the end of the third quarter of 2022. If this turns out to be positive and the project financing is in place, then initial work could still begin towards the end of 2022. The capital increase carried out in November with gross proceeds of CAD 10.5 million should have been large enough to finance the majority of the planned projects.
The Twin Hills gold project is located in central Namibia in what is known as the Damara Sedimentary Belt, also referred to as the Namibian Gold Belt. In total, the Company holds a land package of approximately 6,700 sq km in this region with good infrastructure.
The Company is currently valued at CAD 134 million. With the release of a larger resource estimate and better visibility on the project's economics in the second and third quarters of 2022, the stock should see significant gains over the next year.
Barrick Gold - How does this fit together? Record profits in 2021 and a falling share price
Based in Toronto, Canada, Barrick Gold is the world's second-largest gold producer. Its business activities include the production and sale of gold and copper, exploration activities, and mine developments. Approximately 90% of sales are in the precious metal and 8% in the industrial metal, copper. The Company holds interests in 14 gold mines, including six tier-one gold assets, i.e., mines producing at least 500,000 ounces of gold per year over a ten-year period or more.
The Company's gold mines are well diversified geographically and are located in Argentina, Canada, Côte d'Ivoire, the Democratic Republic of Congo, the Dominican Republic, Mali, Tanzania and the United States. Geographically, the most important location is the United States. Overall, the assets are of high quality and long service life.
Even though the group brought in record profits this year, gave shareholders special dividends and should meet guidance, the stock will end the current year in the red. Thus, the market is pricing in a roughly flat gold price and rising costs. However, analysts are almost unanimous in rating the stock as a buy and believe the shares have an upside potential of 45%.
First Majestic Silver - Exciting year comes to an end
The past year was memorable for the Canadians. The operator of several silver mines in Mexico deviated from its tried-and-true corporate strategy on two fronts. First, in terms of geography, the acquired Jerritt Canyon project is located in the US state of Nevada. Second, it is a gold mine on a 30,821-acre property that first produced in 1981.
Recently, First Majestic refinanced itself significantly more favorably with a convertible bond in the volume of USD 230 million. Together with rising gold production, this should boost the share price in the coming year. Analysts believe that the stock has an upside potential of almost 50%.
Investors can benefit from a high gold price and corporate profits by investing in the three stocks described above. Primarily, this applies to Barrick and First Majestic. In our opinion, Osino Resources has the most significant potential. Determining a resource in the second or third quarter of 2022 should lead to a revaluation of the stock.
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.
