Close menu




October 20th, 2022 | 10:27 CEST

Plug Power, Desert Gold, BYD - Discover the opportunities

  • Mining
  • Gold
  • Electromobility
Photo credits: pixabay.com

"If you do not have the stocks when they fall, you do not have them when they rise." These wise words from a famous quote from stock market legend André Kostolany are little consolation to investors whose portfolios have melted considerably in recent months. In the long term, however, there are many attractive opportunities to enter strongly corrected companies at the current level. In addition to the stock market, other asset classes such as cryptocurrencies and precious metals also offer opportunities for disproportionate price gains in the future, despite the current uncertain environment.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , DESERT GOLD VENTURES | CA25039N4084 , BYD CO. LTD H YC 1 | CNE100000296

Table of contents:


    Jared Scharf, CEO, Desert Gold Ventures Inc.
    "[...] We have built one of the largest land packages of any non-producer in the belt at over 440 sq.km and have made more than 25 gold discoveries on the property to date with 5 of these discoveries totaling about 1.1 million ounces of gold resources. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.

    Full interview

     

    Plug Power - Sales warning ahead

    In February, a report had been skeptical about the ambitious visions of leading US fuel cell manufacturer Plug Power. According to CEO Andy Marsh, who is known for his marketing skills, sales should reach USD 900 to 925 million in 2022. The big breakthrough is then planned for 2025. Here, the sales target is USD 3 billion, a gross margin of 30% and an operating profit of at least 17%.

    At least for the current year, the Company has had to row back once again, and the 2025 vision is also becoming somewhat distant. Company sales are now expected to be 5 to 10% lower than initially forecast by the Company's management. "The impact on revenue reflects some larger projects that may not be completed until 2023 rather than 2022 due to timing and supply chain issues. While sales in 2022 may be lower than previously anticipated, demand for fuel cell applications and electrolyzers remains robust," according to the Company's release.

    Investors acknowledged the "revenue shift" with a sharp sell-off to below USD 18, which broke the upward trend formed since May. Accordingly, the next striking support is at the high from 2020 at USD 14.35.

    Desert Gold - In the shadow of the gold correction

    The strong US dollar and concerns about further major interest rate steps by central banks worldwide continue to depress the gold price. Fighting inflation at all costs is the strategy of the monetary guardians. Despite recession worries on the financial markets, the players are determined to curb inflation with a tight interest rate. The fact that inflation has already gotten out of hand and can hardly be contained by further interest rate hikes without driving the economy into ruin should not only be apparent to economists. The voices are already increasing that an end to the strict monetary policy is already being heralded, which should give a sustained boost to the shares of gold producers and exploration companies.

    The advantage of smaller mining explorers is that they act as leverage in longer-term trend movements in the underlying price, both in one direction and the other. Despite excellent corporate performance in recent months, Desert Gold's stock is feeling the pinch. Since the July 2020 high, the stock has lost nearly 80% of its value and is trading at EUR 0.07 with a market capitalization of CAD 10.51 million.

    With the SMSZ project in Mali, Desert Gold owns one of the largest non-producing land areas in West Africa, with 440 sq km. Several producing mines are located in the neighborhood, including those of Barrick Gold, Allied Gold, Endeavour Mining, and B2Gold. The SMSZ property hosts Measured and Indicated Mineral Resources totaling nearly 1.1 million ounces. A total of more than 23 gold zones have been discovered in the area to date, which will be developed and analyzed for economic grades. With the release of results on the recovery rate of gold from crushed rock, Desert Gold was able to report strong results.

    This included recoveries of between 86% and 88% of the gold from the freshly drilled rock in samples from the Mogoyafara South projection area. These are excellent results and very important for economic viability if the ore body is later mined. Previous metallurgical tests at the Baranie East project have recovered gold in ratios of 83% to 98.7% depending on the rock strata, between 93.6% to 95.2% at Gourbasse West and 87.6% at Gourbassi East on freshly crushed gold ores.

    The next steps are to commence a 35,000m drill program, which includes 10,000m of potential drilling aimed solely at resource delineation. Overall, Desert Gold intends to follow up and expand known gold zones, with plans to focus on Mogoyafara South and Gourbassi West North initially. Desert Gold believes these are the largest gold systems discovered on the SMSZ property to date.

    BYD - Strong numbers and position reduction

    Major institutional players are partially selling their silverware and continue to shed position in the Chinese market leader in the electric car sector, BYD. After investor legend Warren Buffett decided weeks ago to sell part of his position, the world's largest investment company BlackRock lowered its share quota. A total of 3.92 million BYD H shares with an equivalent value of HKD 187.24 million were sold. As a result, the shareholding ratio fell from 6.21% to 5.85%.

    Almost simultaneously, the Shenzhen-based company reported outstanding preliminary results for the third quarter of fiscal year 2022. The "Build Your Dream" company was able to nearly quadruple its net profit compared to the same period last year. Thus, management expects net income to be between USD 765 million and USD 820 million, an increase of about 350%. According to preliminary results, earnings per share will be between USD 0.26 and USD 0.28. In the previous year, the figure was USD 0.06.

    The US investment bank JPMorgan continues to see the electric car company on the right track. For the analysts, BYD continues to be a top pick in the sector, and they repeated their price target of USD 35.03 after the publication of the preliminary figures.


    The sharp market correction in recent months has created anticyclical entry opportunities for many companies, which could deliver high returns in the long term. JPMorgan continues to see BYD as a top pick. In the case of Plug Power, the sales warning is likely to have an impact still. In the event of a sustained rise in the gold price, the exploration company Desert Gold could significantly outperform the base price.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided 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 André Will-Laudien on October 22nd, 2025 | 07:35 CEST

    Gold and silver – New record highs! Keep an eye on Barrick, Agnico Eagle, Desert Gold, and First Majestic!

    • Mining
    • Gold
    • Silver
    • Commodities

    Silver prices broke through the USD 53 mark for the first time at the beginning of the week, and gold is attempting to reach the USD 4,300 mark. Precious metal enthusiasts have been anticipating these moves for a long time, but traders on the futures exchanges clearly have not. In addition to extreme physical scarcity, the exploding prices are also attributed to heavy short squeezes. The physical silver market is under tremendous pressure as the availability of real metal to hedge the numerous futures transactions is severely limited. This imbalance is causing erratic market reactions and driving the spot price into an almost exponential sell-off. The current rally in precious metals is driven by geopolitical uncertainty, industrial demand factors, and the search for safe investments. In times of excessive government debt, the weakness of the US dollar is now also weighing on the market. Which companies should investors keep a close eye on now?

    Read

    Commented by Fabian Lorenz on October 22nd, 2025 | 07:30 CEST

    SHARE PRICE EXPLOSION for commodity gems!? Nordex, Aurubis, Salzgitter, and Power Metallic Mines!

    • Mining
    • Lithium
    • Copper
    • Commodities
    • Steel
    • Wind
    • renewableenergies

    Shares in the commodities and precious metals sector have been unstoppable in recent weeks. Power Metallic Mines could soon become an explosive latecomer to the rally. There are good reasons for this, as the CEO recently made clear. At Aurubis, the rally appears to be over for now. Analysts are skeptical, and the major shareholder is cashing in his shares - albeit in an unusual way. So should you sell now, too? The past few months have been unusually positive for Nordex. There is currently no sign of a slump in the wind business. What are analysts saying after the latest order intake?

    Read

    Commented by Carsten Mainitz on October 22nd, 2025 | 07:25 CEST

    The stock market success stories Almonty Industries, TKMS, and Steyr Motors are opening a new chapter - and it is still not too late to get in!

    • Mining
    • Tungsten
    • CriticalMetals
    • Automotive
    • hightech
    • Defense

    The trade conflict between the US and China is intensifying and reaching a new strategic dimension. Beijing is deliberately restricting exports of critical raw materials and rare earths that are indispensable for high-tech industries, defense, and the energy transition. Western industries are coming under pressure, security of supply is faltering, and prices are rising. Meanwhile, the beneficiaries of this situation, such as producers of critical raw materials, are experiencing a boom. What happens next, and what does the stock market newcomer TKMS have to do with it?

    Read