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

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.