October 19th, 2021 | 13:13 CEST
Plug Power, Central African Gold, Newmont: The best of both worlds
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"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
Plug Power: Share at decision zone
Plug Power has developed rapidly over the past twelve months. Although a return of 85% is still on the price list over the period, the share has not only made investors happy over the past year. In Germany, the value, at times, reached a level of EUR 60 - currently, Plug Power is trading at less than half that. So what could happen next for the Company?
Plug Power is one of the best-known hydrogen stocks and is also well positioned. Thanks to partnerships with Renault, Acciona and Airbus, the Company could be one of the beneficiaries when hydrogen becomes acceptable as an energy source. While the market is currently playing the e-mobility card, hydrogen remains a good choice, especially for commercial vehicles or ships. As Plug Power is pushing ahead with its efforts on all continents and has a foot in the door almost everywhere, the share could also pick up speed again. Prices above the EUR 30 mark could be the starting signal for this.
Central African Gold also stands for copper, cobalt and nickel
As is so often the case, with Plug Power, it is important that the market also rewards the Company's efforts. Those who want to invest more independently of certain technologies and take inflation into account might want to look at the share of Central African Gold. Contrary to what the name suggests, the Canadian Company also stands for copper, cobalt and nickel in addition to gold. Central African Gold operates in the Democratic Region of Congo and deliberately wants to break new ground there: While the country was known for child labor until a few years ago, Central African Gold wants to implement high sustainability standards in its projects. Above all, social aspects are important to the Company - a key to also getting employees and local residents on board.
The Company has six concessions with a total area of 176 sq km, which includes farmland and forests. The Company hopes to generate revenue from trading in carbon credits. Just recently, Central African Gold bought a 60% stake in the Zani-Kodo gold project. Just over 120 kilometers away is Kibali, the continent's largest gold mine. Central African Gold is also a speculative stock because of its mid-single-digit market capitalization. However, its sustainable approach fits the times, and with various projects, the Company has several irons in the fire.
Newmont: Commodity mix as a guarantee for success
Mining giant Newmont also has numerous irons in the fire. The Company generates around three-quarters of its revenues from the sale of gold and copper accounts for the rest. At Newmont, too, the secret of success lies in the raw material mix. While gold, as an inflation-profiteer and crisis metal, is often given as a wedding present in many Asian countries, copper is the industrial metal par excellence: infrastructure, construction, electromobility - you cannot do without copper. In recent months, Newmont has scored with rising sales and falling costs. That was also the prerequisite for the Company to significantly increase its dividend - investors can now expect a dividend yield of around 2%. However, on the stock market, this mixture of factors has not caused much joy - on a one-year horizon, Newmont is down about 9%. In German trading, the value must first overcome the EUR 50 mark before a positive trend reversal can come within reach.
While Newmont currently does not appear very interesting, the spirit of the times and the chart situation are coming together at Plug Power. How the value develops in the short term, however, depends primarily on the market situation. Company announcements have hardly helped the share to get going lately. But even one company announcement can be enough to boost the Central African Gold share significantly. The reason is the low market capitalization - almost any news can be a game-changer. However, since this also applies in a negative sense, the share is speculative.
Conflict of interest
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