October 18th, 2024 | 07:00 CEST
Resources and AI: How Globex Mining, Barrick Gold, and Palantir are shaping the future
Modern times require one thing above all: resources that fuel innovative solutions and sound strategies from CEOs who seize every opportunity and convert it into profit. Globex Mining shines with its innovative "mineral bank" model, which impresses with its diversification, debt-free balance sheet, and steady cash flows from options and royalties. Barrick Gold, despite short-term production challenges, demonstrates operational flexibility and relies on its portfolio of high-grade gold assets to ensure long-term growth. Palantir Technologies is using its leading position in the AI sector to transform traditional industries, which is reflected in impressive share price growth and lucrative partnerships such as the one with APA Corporation. We take a deep dive into the latest developments.
time to read: 4 minutes
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Author:
Juliane Zielonka
ISIN:
GLOBEX MINING ENTPRS INC. | CA3799005093 , BARRICK GOLD CORP. | CA0679011084 , PALANTIR TECHNOLOGIES INC | US69608A1088
Table of contents:
"[...] 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
Author
Juliane Zielonka
Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.
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Globex Mining: A diverse portfolio and solid finances are key to success
Globex Mining Enterprises Inc. presents itself as a unique "mineral bank" in the resource industry. With a broad portfolio of over 250 projects ranging from precious metals to base metals to rare earths, the Company offers investors a diverse range of opportunities in the mining sector. This diversification allows Globex to benefit from different commodity cycles and spread risk for investors.
As a family business led by CEO Jack Stoch and his wife Dianne Stoch, Globex is characterized by a long-term perspective and stable leadership. The Stochs hold approximately 12.4% of the Company's shares, which signals a strong belief in the Company's future. This close link between management and ownership promotes responsible corporate governance and a focus on sustainable value creation.
A particular feature of Globex Mining is its solid financial position. As CEO Stoch emphasized at the 12th International Investment Forum this week, the Company is debt-free and has cash and marketable securities worth around CAD 25 million. This financial strength enables Globex to respond flexibly to market opportunities and to advance its projects without the pressure of external financing.
Gold deposits play a prominent role among Globex's numerous projects. Approximately 60-65% of the Company's assets are gold projects. This strong positioning in the gold sector offers investors the opportunity to benefit from potential price increases in the precious metal.
Globex Mining's involvement in Germany is also noteworthy. The Company owns a promising silver project in Saxony called "Silver City", which extends over 35 km and has a rich mining history.** The combination of a long mining tradition, promising drilling results, and excellent local support makes Silver City an extremely interesting silver exploration project in Germany and opens up potential in a renowned European mining area.
Barrick Gold misses gold production target in Q3/ 2024, copper production increases
The Canadian mining giant Barrick Gold Corporation did not meet gold production expectations for the third quarter of 2024. As the Company announced on Wednesday, preliminary total gold production was 943,000 oz, below the 975,000 oz forecast by analysts. The production decline is mainly due to reduced output at the Carlin and Cortez mines in Nevada. Both mines are part of the Nevada Gold Mines joint venture with US competitor Newmont.
Despite the weaker third quarter, Barrick is confident about the year as a whole. The Company expects a significantly stronger fourth quarter and assumes that it will be able to meet its annual forecast for gold and copper. In addition to gold, Barrick produced around 48,000 tons of copper in the third quarter. Copper production increased compared to the previous quarter. The global copper market is estimated at USD 324.23 billion this year. The market will grow at a compound annual growth rate (CAGR) of 5.04% from 2024 to 2034. The global copper market is expected to reach USD 530.43 billion by 2034. This is due, among other things, to high demand in the construction and electrical industries.
Barrick expects slightly higher production costs per ounce of gold in Q3 compared to Q2. This is partly due to higher royalties resulting from the increased gold price. The Company will present detailed results for the third quarter of 2024 on November 7 before the opening of the North American markets.
Palantir and APA Corporation expand AI partnership in the millions
Palantir Technologies is currently the fourth largest software company on the New York Stock Exchange by market capitalization and has seen an incredible 147% increase in its share price since the beginning of the year. Now, the AI company and the US oil and gas company APA Corporation have announced a multi-year extension of their collaboration in the US dollar million range.
Over the past three years, Palantir has deployed its software across APA in areas including operational planning, supply chain management, and production optimization. Specific improvements include real-time monitoring of production facilities, optimization of raw materials logistics, and the use of AI to detect anomalies in contract and invoice documents.
The agreement builds on the partnership that has existed since 2021 and adds new AI capabilities through Palantir's Artificial Intelligence Platform (AIP). By using advanced data analysis and artificial intelligence, companies like APA can optimize their operations.
Globex Mining is like a broad-based ETF with over 250 projects in various commodity sectors. As a debt-free family business with a solid financial base of CAD 25 million in cash and securities, Globex is well-positioned to respond flexibly to further market opportunities. Its focus is on gold projects, which account for 60-65% of its assets. Despite the weaker quarter, Barrick Gold remains confident for the full year and expects a stronger fourth quarter. Copper production will increase to 48,000 t. Barrick Gold expects slightly higher gold production costs in the third quarter, partly due to increased royalties. Palantir has expanded its AI partnership with APA Corporation for millions of dollars. The collaboration includes the use of Palantir's software in areas such as operational planning, supply chain management and production optimization.
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.
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