December 23rd, 2021 | 13:13 CET
S&T, Prospect Ridge Resources, Steinhoff - A lot of movement!
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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
S&T - Shorty at work
The share price of the Austrian IT service provider recently came under significant pressure. Viceroy Research published a highly critical report on extensive compliance violations, the quality of acquisitions, the growth, and the group's balance sheet. The Company, which is associated with the stock market speculator and short-seller Fraser Perring, also appeared in the past in the Wirecard, Grenke and Adler Group cases.
According to S&T, there was no contact between Viceroy Research and the Austrians prior to the publication. The core of the case, according to S&T, is about alleged compliance violations, some of which occurred a long time ago. "In the next few days, we will examine the report and the allegations it contains in detail, both internally and externally, and then come back with a detailed, public statement, as well as a concrete package of measures," the group announced.
CEO Hannes Niederhauser was combative: "we confirm that the operating performance of S&T AG is within the range of the current guidance for the 2021 financial year." Numerous analysts reaffirmed their respective ratings and price targets.
Prospect Ridge Resources - Good prospects
The Canadian gold explorer can look back on a very successful year. The Company made two significant acquisitions with the Holy Grail and Knauss Creek properties, both located in northern British Columbia, in the so-called "Golden Triangle". A total of six zones of visible gold have been identified. Recent results on the Hugin zone (Knauss Creek property) showed up to 3.49 g/t gold. Exploration work on the Holy Grail property returned phenomenal results with grades up to 117 g/t gold and 578 g/t silver. In addition, the project has excellent infrastructure with access to two highways, rail lines, power lines and forest roads. The indications of copper, molybdenum and lithium could also spice up the investment story once again.
The Company has already defined four targets for next year, and drilling is scheduled to start in the spring of 2022. The Canadians are sufficiently financed and currently have CAD 5.3 million in cash. To date, Prospect Ridge has raised over CAD 8.5 million from investors. Most recently, a placement took place with gross proceeds of CAD 1.263 million. The share certificates were sold at CAD 1.00, and investors received half a warrant to purchase one share. Each whole warrant entitles the holder, upon exercise, to purchase one additional share of the Company for CAD 1.50 for a period of 18 months from the date of issue, subject to a mandatory exercise provision in the event that the trading price of the shares reaches or exceeds CAD 2.25 for ten consecutive days. Currently, the CSE-listed stock is hovering around the CAD 1 mark. As a result, the Company is valued at around CAD 30 million. Given the Company's potential, this can be considered moderate.
Steinhoff - Rollercoaster of emotions
In 2021, shareholders of Steinhoff had to endure some ups and downs. Since the crash in 2017 as a result of an accounting scandal, it is simply a matter of the group's survival. Steinhoff is an integrated retailer serving price-conscious consumers in Europe, the UK, the USA, Africa and Australasia with household goods and general merchandise. In Germany, the group was known for its discount furniture retailer Poco.
In late summer, a solution with creditors seemed to have been reached. However, this was torpedoed by Tekkie Town, who were paid in Steinhoff shares before the insolvency, and filed for liquidation. Then recently, the turnaround. Steinhoff reached an agreement with the founder of Tekkie Town. The latter will now receive around EUR 30 million and 29.5 million share certificates in the subsidiary Pepkor. However, this is conditional on an overall settlement being reached. It remains exciting.
All three companies are in an exciting phase. The volatility offers trading opportunities. Steinhoff has significantly improved its chance of survival but remains hot speculation. The sentiment on S&T is negative, and we eagerly await subsequent company statements. Prospect Ridge is completely under the radar of investors. Project progress should provide positive price impulses next year.
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