Close menu




March 1st, 2021 | 09:40 CET

Plug Power, Blackrock Gold, Barrick Gold - These are the brands that matter!

  • Gold
Photo credits: pixabay.com

Commodities are exploding. Industrial metals such as copper are rushing from one multi-year high to the next. Due to the high metal demand of a low-carbon economy, the US investment house JP Morgan has already declared a new supercycle. Meanwhile, one commodity is correcting: Gold. Optimism about a substantial recovery of the global economy is growing, and uncertainties are decreasing. The correction is likely to continue in the short term, but the calls for the safe haven are getting louder again in the longer term.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: US72919P2020 , CA09258M1014 , CA0679011084

Table of contents:


    Ryan Jackson, CEO, Newlox Gold Ventures Corp.
    "[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

    Full interview

     

    In correction mode

    Opinion turns so quickly. After the sound barrier of USD 2,000 and the high of USD 2,069.70 per troy ounce of gold was scaled last August, experts were already touting price targets beyond USD 10,000. Currently, the precious yellow metal has at least a short-term problem. Although the long-term upward trend is still intact, the short to medium-term trend points downward. The reasons are the easing of the Corona pandemic due to the positive vaccination programs, a rapidly recovering global economy, and rising US bond yields. These yields are now quoted at more than 1.4% in the 10-year range, the highest since a year ago.

    Gold is "out" - for now!

    Investors are leaving the safe haven and are currently seeking their fortune in other investment forms such as equities. According to industry reports, gold ETF holdings are at their lowest level since May of last year. The FED Chairman Powell's statement, who wants to hold on to the current pace of bond purchases for a longer time, does not help much. Thus, the price fell in Friday trading to USD 1,730.0, down 2.73%. There is a broad support zone between USD 1,670 and USD 1,730. Given the long-term outlook, initial positions should be opened in physical gold or promising gold mining stocks. The widely held expert opinion still applies: every portfolio needs a share of gold for diversification. The next crisis is sure to come.

    Strongly developed, firmly fallen!

    Anti-cyclical trading has reaped the most rewards in the past. At present, the gold price and the gold mining shares are correcting, although they are shining with strong results and record dividends. Industry giant Barrick Gold recently brought strong fourth-quarter numbers to the table, earning USD 0.35 per share in the fourth quarter, four cents more than analysts expected. According to the group, revenue came in at USD 3.28 billion compared to an estimated USD 3.22 billion, and gold production for the quarter also came in at 1.21 million ounces, above the expected 1.16 million ounces of the yellow metal. Furthermore, Barrick Gold announced its intention to distribute USD 0.42 per share of capital to shareholders. In addition, the group also announced a dividend of 9 cents per share for the fourth quarter. However, the stock did not follow the excellent data. Since last year's gold price high, the industry leader has halved.

    Seizing the opportunity

    Blackrock Gold's stock was also not spared, although it is trending strongly upward. It was recently reported that the Company received CAD 10.35 million due to a bid on a bought-deal basis. Due to the high demand for shares in Blackrock Gold, the offer was previously increased from the original CAD 7.02 million. The offering's net proceeds will be used to fund exploration of the Company's Tonopah West and Silver Cloud properties in Nevada. And these two projects are more than prospective, as reflected in recent results. At the first project, Tonopah West, there was good news at the end of last year. Due to positive results, the Victor gold vein had to be enlarged by 480m. Also, gold and silver discoveries were well above expectations. Thus, in the full year 2020, the Company achieved a total of 14 gold and silver discoveries with peak four-digit results in grams per ton. More drill results are pending for 2021. The prospects of advancing from an explorer to a producer are given here if the news flow continues to be positive.

    Price fantasy through a spin-off

    Silver Cloud's share price is also on the rise. Due to the excellent drilling results, the management plans to transfer the project to a new company as a spin-off. Silver Cloud, therefore, promises potential, as the geology shows many similarities with the Hollister mine operated by Hecla Mining. It is currently being examined whether Silver Cloud could be an extension of the Hollister mine. Currently, the share price does not reflect Blackrock Gold's positive developments at all. After the August high at CAD 1.61, one share is presently available for CAD 0.79, a discount of 50%.

    The end of the correction?

    Not only gold mining stocks are in correction mode. Fuel cell manufacturer Plug Power has also been hit hard. The stock, which was trading above USD 75.00 at the end of January, closed the gap at a whopping USD 37.00, only to exit Friday's trading at USD 48.38 with a gain. Blame for the downturn was, in addition to the general market weakness, the figures for the fourth quarter and the full fiscal year 2020, which disappointed analysts. On the other hand, the outlook for the current year was more positive. Plug Power confirmed the recently raised forecast for gross sales from USD 450 million to USD 475 million. Of particular note here are the collaborations with Renault and SK Group, which the Company's management says will be strengthened. We currently refrain from buying Plug Power and put the stock on our watch list.


    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on December 1st, 2022 | 09:46 CET

    BYD, Auxico Resources, Hensoldt, Rheinmetall - Prepared for the future

    • Mining
    • Gold
    • RareEarths
    • Defense

    Russia's invasion of Ukraine at the end of February this year changed everything. While global stock markets fell into a state of shock, shares in defense companies boomed. With the arms buildup in the Western world, the future looks bright for companies that were still viewed critically before the war of aggression. However, in order to produce enough tanks, aircraft and other war equipment, the industry needs a variety of critical metals for which demand already exceeds supply.

    Read

    Commented by Stefan Feulner on November 22nd, 2022 | 13:42 CET

    Favorable starting positions for Commerzbank, Desert Gold and BioNTech

    • Mining
    • Gold
    • Investments
    • Biotechnology

    The suspected downward pressure due to uncertainties in the economy and geopolitics has so far failed to materialize. Instead, the most important stock indices, such as DAX or Dow Jones, were able to leave their short-term downward trends and are sending signals for a further upward push. In addition to the stock market, the precious metals sector was also able to turn around. Here, in particular, entry opportunities beckon at a significantly reduced level with the chance of long-term, disproportionate price gains.

    Read