Close menu

March 21st, 2022 | 11:15 CET

Shares between expropriation and the new era: Barrick Gold, Triumph Gold, Alibaba

  • Gold
Photo credits:

Goldman Sachs has always been considered well-informed and well-connected in investor circles. Even if sometimes a little too much is read into the forecasts of the US bankers, investors should take note of them. Currently, Jeff Currie, commodity specialist at Goldman Sachs, assumes a "perfect upswing" for gold. The price target could be USD 2,500. Goldman sees the precious metal as the "currency of last resort" and points to rising ETF purchases and increasing demand from central banks. We take a look at three stocks and their prospects.

time to read: 4 minutes | Author: Nico Popp

Table of contents:

    Barrick: The beginning of a new era?

    Barrick Gold has made significant gains in recent weeks. For years, the value was considered a toothless tiger. Barrick earned good money but did not bring its horsepower to the street. Investors wanted acquisitions, but instead, the Company paid out special dividends or bought its own shares. What disappointed investors a year ago is now better received. The reason lies in a reorientation of the dividend policy. In addition to buying its own shares, Barrick Gold wants to restructure its dividend in the future. There will be a basic dividend linked to profits, and a performance dividend, which depends on the debt ratio. Given rising prices for gold and copper and the abundant cash flows, this move is proving well received by investors.

    In November of last year, the research portal stated that Barrick Gold had "catch-up potential". The authors pointed out that special distributions could become a new rule at Barrick: "The continuation of special distributions is quite realistic, which means that the dividend yield should be around 4%. As the guidance shows, production should increase noticeably in the second half of the year. The multi-year outlook of the Canadians is around 4.7 million ounces of gold p.a. This means that the price level of gold will once again be a decisive factor for the Group," said In the meantime, the share price has jumped significantly, and the dividend is flowing. The share still seems to have room to run to the highs from 2020. If the EUR 25 mark is exceeded, this should be the beginning of a new era for the gold market.

    Triumph Gold: Positive signals from geologists

    The EUR 25 mark for Barrick Gold should also be significant for investors of smaller stocks, such as Triumph Gold - if the large gold stocks reach new record highs, the mass of investors would also jump on the gold bandwagon. Small stocks, in particular, can offer great potential in such phases. In the months between April and August 2020, many small stocks multiplied. Triumph climbed from EUR 0.08 to EUR 0.25 during this period. Meanwhile, the Company has expanded its project in the Canadian Yukon and explored new areas.

    In addition to grades of up to 2 g/t gold and 1.57 g/t silver over 4.5 meters, and lower grades around 0.5 g/t for both elements over 46 meters, Triumph Gold's latest results indicated, among other things, the possibility of low-cost leach mining, the Company reported. In this process, elements are dissolved directly in the ground and brought to the surface. No overburden is produced and no rock has to be moved. If this mining method is ultimately possible, in addition to an attractive cost profile, it could ensure the continued approval of First Nation. First Nation has been open to the project and has maintained a partnership exchange with Triumph Gold. Triumph Gold's share price has not yet rebounded. Since smaller project developers usually react to rising commodity prices with a time lag, a comeback of the share could still be ahead. However, the stock remains speculative - while Barrick Gold makes money every day with high gold prices, Triumph lives on its fantasy.

    Alibaba: The fear of expropriation

    Alibaba's stock has also sparked a lot of fantasy over the years. The Chinese Amazon was seen as the perfect symbiosis of a tech company and online retailer. Since the Company is primarily active in China, investors also projected the rise of the Chinese middle class onto the stock. However, the share has been facing headwinds for some time. Since the canceled IPO of Alibaba's Ant subsidiary, investors have been pulling capital out of Alibaba. The Company seems to have fallen out of favor with the powers that be in Beijing. The Ukraine war and increasing geopolitical turmoil are not improving the situation. Russia has already asked China for help. While many observers assume that China is unlikely to make the mistake of joining Russia in forming an anti-Western camp, tensions are mounting. Moreover, because China stocks, like Alibaba, are organized through offshore companies in which investors invest, there are additional risks. These so-called ADRs hold claims against the Company in mainland China. There is no direct ownership interest.

    At a time when Russian stock exchanges are not trading for many weeks, assets worth billions are being frozen, and some of the political rhetoric is getting harsher, a concept like ADRs could become a risk. While Alibaba has made significant gains recently, it remains down around 54% over a one-year horizon. Given the current uncertainty, typical crisis investments are more suitable. Gold producers such as Barrick are among them, but smaller stocks can also act as crisis insurance in a balanced portfolio given their risk profile. Triumph Gold has the potential to benefit disproportionately in the event of new gold highs.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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 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

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

    Related comments:

    Commented by Fabian Lorenz on November 29th, 2023 | 10:00 CET

    Sell Varta shares? Positive news from JinkoSolar and Manuka Resources

    • Mining
    • Gold
    • renewableenergies
    • Solar
    • Batteries

    Is the Varta share price party over again? The shares of the former German battery darling have gained around 30% in value over the past six months. But now analysts are advising to sell. JinkoSolar's management had hoped for more buying when it announced the dividend at the end of September. While this was not the case, shareholders can at least look forward to a payout next week. Manuka Resources is currently managing the balancing act between positive cash flows from the sale of gold and investments in resource expansion. The Company is sitting on another potential "treasure" with a project for battery metals. Is the share undervalued?


    Commented by Stefan Feulner on November 29th, 2023 | 09:55 CET

    Aixtron, Blackrock Silver, Coinbase - Ready for the year-end rally

    • Mining
    • Gold
    • Silver
    • crypto

    Bets are increasing that the US Federal Reserve may have at least paused to raise interest rates further. This prompted the gold price to reach a six-month high of USD 2,016 per ounce. As with its little brother silver, the signs point to further price rises in the short term. The world's largest cryptocurrency, Bitcoin, even reached a new high for the year of over USD 38,000. Optimists are already anticipating prices well above the USD 50,000 mark.


    Commented by André Will-Laudien on November 27th, 2023 | 07:00 CET

    Turnaround Special: 60 billion financial hole - Not with us! TUI, Desert Gold, Bayer and Lufthansa - Get in now!

    • Mining
    • Gold
    • travel
    • Pharma

    When the stock market is booming almost every day, it is easy to lose sight of the loss-makers of 2023. But it does not have to continue like this! The market regularly rotates through segments, so today's losers will soon be the winners again. This is already evident with TUI and Lufthansa, who are slowly emerging from the Corona shock. Bayer is halting a promising drug and still has to deal with legal disputes. The current situation and the rising gold trend speak in favor of Desert Gold. Let's take a look at the values of tomorrow.