Close menu




April 14th, 2021 | 12:30 CEST

Osino Resources, Barrick Gold, Sibanye Stillwater - Gold in Turnaround!

  • Gold
Photo credits: pixabay.com

The large gold producers are left lying in the current environment. What counts on the capital markets is the slight inflation, which one gladly accepts, because the economies have been suffering for years from the prescribed minus interest rate and deflationary tendencies. In other stock market cycles, demonetization phases were always good times for the precious metals; this is not yet evident at present. After the significant correction in March 2020, there were sharp rises in mining stocks until late summer 2020, but a large part of the gains will gradually melt away again in 2021. Is there still hope for the precious metals?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: CA68828L1004 , CA0679011084 , ZAE000259701

Table of contents:


    Justin Reid, President and CEO, Troilus Gold Corp.
    "[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

    Full interview

     

    Osino Resources - The first drill results are in

    Canadian Osino Resources offers a notable exception with its properties in Namibia. Osino's exclusive exploration licenses portfolio is located within the prospective Damara mineral belt, mainly near the producing Navachab and Otjikoto gold mines, covering a total area of approximately 7,000 square kilometers. Initial results have just been released in the form of a NI 43-101 report for its Twin Hills gold project in Namibia's Erongo region.

    To find a conclusion about a mineral resource, many technical parameters of the drilling location, angle and size of the land under investigation are published. In the case of Osino, 69,000 meters have been drilled, of which assay data has been evaluated for approximately 62,000 meters. Drilling will now continue with the objective of upgrading the mineral resource to the Indicated category by the end of 2021.

    Management is extremely pleased with the current results. Heye Daun, President and Chief Executive Officer of Osino, commented as follows: "The publication of this maiden mineral resource is the culmination of almost five years of hard work, starting in 2016 when Osino commenced greenfield exploration in this area which had seen decades of conventional prospecting by multiple operators and was considered mature by established Namibian geological dogma." The Twin Hills gold project under the Kalahari sand and limestone cover is now slowly taking shape; this is all the more exciting as it is only 20 kilometers from the largest gold deposit in southern Africa outside the Wits Basin (Navachab).

    Osino shares were at CAD 1.05 three weeks ago and have since swung up to CAD 1.50. Regardless of the consolidating gold market, the drill results are very well received, which should soon lead the value into a new valuation dimension.

    Barrick Gold - Dispute in Papua New Guinea settled

    Barrick Gold is one of the massive producers behind Newmont Mining. The Company, which as recently as 2013 was saddled with a debt mountain of more than USD 13 billion, now has zero net debt, no significant maturities over the next 10 years and a robust balance sheet with solid liquidity of more than USD 5 billion. The quarterly dividend has been tripled. At the annual general meeting, the board had recommended that an additional USD 750 million in cash be distributed this year as a return of capital to shareholders.

    Barrick recently announced that its subsidiary Barrick Niugini Limited (BNL) and the Government of Papua New Guinea (PNG) have agreed on a partnership for the future ownership and operation of the Porgera gold mine. It is expected to be restarted by the end of 2021. It has been in care and maintenance since April 2020, when the government refused to renew its special mining lease.

    The dispute now appears to have been resolved. Under the terms of the agreement, ownership of Porgera will be held in a new joint venture, 51% by PNG stakeholders and 49% by BNL. BNL will remain the mine operator, and both PNG and BNL shareholders will share economic benefits on a 53/47 basis. BNL will fund the capital required to restart the mine. In addition, a group of landowners has been awarded an increase in royalties. The state retains the right to acquire the remaining 49% of the mine from BNL after 10 years at current market value. Barrick Gold shares have been relatively unspectacular this year, consolidating from a high of EUR 20 to below EUR 17. Currently, the share is on hold.

    Sibanye Stillwater - Great 12-month performance

    The mining Company Sibanye Stillwater is active in precious metals mining in South Africa, the USA, Zimbabwe, Canada and Argentina. It is the world's largest producer of platinum, the second-largest producer of palladium, and the third-largest producer of gold. Sibanye was founded in 2002 and, although it has a global presence, has kept its headquarters in Weltevredenpark, South Africa.

    In 2020, after a lengthy restructuring, the Company went public in Johannesburg, which also included acquiring the remaining quotas of Sibanye Gold. Since the IPO in February 2020, the share price has developed very well; in the meantime, the price had slipped to EUR 1. The decisive factor was reducing debt and integrating the important gold assets in South Africa into the previously fragile balance sheet. After carrying out two significant capital increases, everything has now been cleaned up.

    Sibanye reported a profit of ZAR 30 billion in 2020, up from ZAR 62 million in 2019, which was a profit multiple. The reason was the increased profitability of the Marikana gold mine in Rustenburg. The Company had the opportunity to produce a full year in 2020 despite the Corona pandemic, and there were some strikes by miners in South Africa in 2019. But what played into the Company's hands the most was the skyrocketing palladium price; platinum also appreciated from its low by over 30%. Sibanye Stillwater is now one of the best positioned precious metals commodity companies globally, and the share revaluation is still in full swing.


    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

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by André Will-Laudien on September 30th, 2022 | 12:36 CEST

    Higher, faster, further: BYD, Infinity Stone, Porsche, Varta - The energy transition stock portfolio is wanted!

    • Mining
    • Gold
    • Electromobility
    • GreenTech

    The words "energy turnaround" are used a lot in public. The majority understand it to mean the use of GreenTech to generate energy while avoiding dangerous climate gases. Unfortunately, the leaks from the Nord Stream 2 pipeline, which is not in operation, are leaking the amount of gas into the atmosphere every day that the state of Denmark consumes in an entire week. This makes us painfully aware of how strongly warlike actions counteract efforts to save the climate. On the stock market, it is important to turn our gaze away from current events and toward a more peaceful future, where good ideas for sustainable change will also be rewarded. Which stocks belong in the portfolio?

    Read

    Commented by Juliane Zielonka on September 29th, 2022 | 10:57 CEST

    Barsele Minerals, K+S, BYD - Sweden as a crisis winner?

    • Mining
    • Gold
    • fertilizer
    • Electromobility

    Due to the explosions in the Baltic Sea pipelines Nord Stream 1 and 2, a switch to other energy sources is inevitable, especially for German industry. Fertilizer producer K+S, based in Kassel, is affected by this. The situation is different with Barsele Minerals. The Canadian company is exploring large gold areas in sunny Sweden and plans to mine up to 3.5 million ounces of the precious metal in the future. Electric car and battery manufacturer BYD, on the other hand, has sufficient resources in its home country of China and is preparing to make the leap into the European market. Find out here which shares are now defying the crisis.

    Read

    Commented by Stefan Feulner on September 27th, 2022 | 13:47 CEST

    Barrick Gold, Tocvan Ventures, Newmont, Glencore - Long-term positioning in gold makes sense

    • Mining
    • Gold
    • Commodities
    • Investments

    The FED's recent interest rate hikes and Chairman Jerome Powell's statement sent both equity and precious metals markets into the valley of tears. By all means, the monetary guardians want to curb rampant inflation. Whether this will succeed seems at least questionable. After all, it should not be forgotten that this would put an end to the already sputtering engine of the global economy. In addition, many already highly indebted countries are falling into ever greater problems due to higher interest payments. Thus, it is time to take a long-term, anticyclical position in the precious metals sector.

    Read