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May 2nd, 2024 | 07:00 CEST

Profit more than doubled! Barrick Gold, Nel shares, Globex Mining ripe for take-off

  • Mining
  • Gold
  • Commodities
  • renewableenergies
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While defense and AI stocks have already performed brilliantly this year, there are also stocks with catch-up potential. One of these is Barrick Gold. Despite a record gold price, the shares of one of the world's leading gold producers are trading at 2019 levels. Will the latest quarterly results bring a breakthrough? In any case, profits have more than doubled, exceeding analyst estimates, and the Company continues to expand. Also gaining momentum in recent weeks is the share of Globex Mining. The mining incubator offers a unique diversification opportunity in the commodities sector. The news flow is convincing and could continue to drive the share further. The Nel share also needs a boost. The hydrogen pioneer can look forward to a major order. Could this trigger a turnaround in the share price?

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: GLOBEX MINING ENTPRS INC. | CA3799005093 , NEL ASA NK-_20 | NO0010081235 , BARRICK GOLD CORP. | 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often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production.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


    Globex Mining: Share is on the rise

    We have mentioned Globex Mining's unique business model and positive news flow consistently in this space. Finally, the share is gaining momentum. From EUR 0.50 in mid-March, the share has now increased to over EUR 0.65. And the prospects for further gains look good. After all, the environment is positive not only for gold but also for other commodities. The Company is expected to continue to publish positive news. Globex, based in Canada, has acquired numerous exploration projects or dormant mines in recent years, building a portfolio of over 240 projects. This covers a wide range of commodities - from precious metals such as gold and silver to rare earths and lithium, the raw material of electromobility. The highlight: Globex makes the properties available to other companies for exploration and receives cash, stock options and subsequent royalty payments in return. This means that costly exploration does not have to be financed by Globex shareholders.

    The latest updates on projects are positive. Among other things, Globex Mining has sold a sodium sulphate-alkali property in the Canadian province of Saskatchewan to Edison Lithium. For this, the Company received USD 200,000 and the equivalent of USD 50,000 in Edison shares. In addition, a 2% gross royalty was agreed in the event of commercial production.

    On a Globex licensed property in the Canadian province of Quebec, partner Brunswick Exploration has reported a successful drilling program. The 35-hole program focusing on near-surface lithium mineralization has been completed. The first evaluations returned up to 1.71% lithium oxide over 31.6 meters. Further data will follow.

    Those wanting to learn more about Globex should watch the recent presentation from the 11th IIF virtual investor (conference).

    Barrick: Profit more than doubled

    Yesterday, Barrick Gold published its figures for the first quarter and exceeded analyst estimates. The gold and copper group increased sales by 3.9% to USD 2.747 billion. Profit growth was significantly stronger. At USD 295 million or USD 0.17 per share, the Company earned more than twice as much as in the same period last year. According to "Thomson Reuters", analysts had expected USD 0.15 per share. Barrick will again pay a quarterly dividend of USD 0.10 per share.

    Barrick CEO Mark Bristow commented on the Q1 performance: "Our focus on exploration has put Barrick in a unique position to more than replace the reserves we are mining year after year. Our key organic projects, such as the development of Reko Diq, extending the life of Pueblo Viejo by more than 20 years, and transforming Lumwana into one of the world's largest copper mines, will secure Barrick's production profile well into the future."

    After announcing a few weeks ago that it was looking for new projects in Mali, Barrick has now struck in Jamaica, and an exploration agreement with Geophysx Jamaica Ltd. was announced. This gives Barrick access to approximately 4,000 sq km of consolidated land positions with a favorable geological environment. Geophysx is the leading mineral exploration company and license holder in Jamaica. Early-stage exploration work has been conducted in recent years, including geochemical sampling, geologic mapping and industry-leading airborne geophysical surveys. If exploration is successful, Barrick may earn up to an 80% interest in the identified properties.

    Nel: Is another major contract finally coming?

    Can a major contract give Nel shares new momentum? At least the announcement of a partnership has already caused the share price to rise by a few percent. The hydrogen pioneer has entered into a partnership with Hy Stor Energy in the US. This involves the development of the Mississippi Clean Hydrogen Hub (MCHH). Nel could supply alkaline electrolysers with a capacity of more than 1 gigawatt for the project. The MCHH project is intended to be the largest carbon-free, off-grid hydrogen production and salt cavern storage center in the US.

    Nel CEO Håkon Volldal: "We are very pleased to be working with Hy Stor Energy on the Mississippi Clean Hydrogen Hub. This project can lead to a significant reduction in carbon emissions and be a model for successful, large-scale green hydrogen projects." Subject to the final investment decision, Nel will start production of the required electrodes next year.

    Despite rising commodity prices, many shares in the sector are still far from historic highs. Barrick is a fundamental investment in the gold sector, while the significant exposure to copper needs to be monitored. With its extensive portfolio, Globex Mining offers a risk-reduced entry into the promising exploration sector. For Nel, practically anything is still possible. The opportunities for hydrogen are undisputed, but so far, Nel, Plug Power & Co. have failed to provide proof of a profitable business model. A significant order could cause a jump in the share price but does not solve the fundamental problems.

    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.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author

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