November 3rd, 2021 | 12:12 CET
Osino Resources, Barrick, Newmont - Now comes the countermovement!
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"[...] One focus will be on deposits near the surface. These would be good arguments for a quick production decision using the low-cost heap leaching method. [...]" Brodie Sutherland, CEO, Tocvan Ventures
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.
Osino Resources - Successfully placed capital increase
The Canadian explorer recently announced the completion of a capital increase with gross proceeds of CAD 10.5 million. A total of 9,545,455 shares were placed at CAD 1.10 each. For each share certificate, investors received half a warrant, which entitles them to purchase shares at a price of CAD 1.35 for a period of 22 months. The share is currently trading at CAD 1.12, valuing the Company at CAD 123 million.
Osino plans to use the net proceeds from the private placement to explore and develop the Twin Hills Gold Project in central Namibia, including drilling, surveys, engineering studies, surface rights and working capital, and general corporate purposes. The Twin Hills Gold Project is located in 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.
At the Twin Hills property, past drilling has brought to light two new mineralized zones, "Clouds North" and "THW Terminal 1". The Company hopes to add significantly to its initial April resource estimate of 430,000 ounces at 1.00 g/t gold (indicated) and 1.47 million ounces at 1.08 g/t gold (inferred). Analysts recommend buying the share and see significant upside potential. The experts formulate CAD 2.60 as an average price target.
Newmont - Revision of annual targets
The quarterly figures recently published by the world's largest gold producer led to a decline in the shares of the industry leader and weighed on the entire industry. Newmont missed market expectations by USD 0.13 with Q3 earnings of USD 0.60. Adjusted, there was even a loss of USD 0.01. The imminent sale of the Conga mill had an impact here. Newmont and Barrick together operate the joint venture Nevada Gold Mines (NGM). At NGM, there were also recently production disruptions, which weighed on output.
Not at all well received was the fact that Newmont revised its outlook for the current fiscal year. Now the Company put a gold production of 5.9 million ounces against the forecast of 6.4 million ounces, which was formulated in December 2020. Despite current long faces among investors, the Newmont story is in full swing. With good prospects for a rising gold price in the medium term, the stock should be able to rally soon.
Barrick Gold - Great excitement in the run-up to the quarterly figures
On November 4, the industry's No. 2 will release its third-quarter numbers. With the recent drop in the share price, the stock market is already pricing in disappointment. Newmont's figures had led to this, although Newmont suffered from one-off effects. The lower output of the Nevada Gold Mine joint venture in recent months should not prove to be a boomerang, as the Canadians had communicated transparently about it. Of course, the question is whether Barrick will also have to row back concerning the targets in the past fiscal year. We do not believe in this and expect a counter-reaction of the share soon.
Tangible assets are the means of choice for investors to protect themselves against a loss of purchasing power in an inflationary environment. With gold producers Newmont and Barrick, investors can do just that. The Osino Resources share is an interesting addition and enables leverage to benefit from the development of the gold price. In addition, the Company has just completed a capital increase, which will be used to further develop the Twin Hills gold project.
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