January 19th, 2021 | 10:19 CET
Sibanye-Stillwater, Desert Gold Ventures, Barrick Gold - Take advantage of the consolidation to enter quickly!
Table of contents:
"[...] Our SMSZ project is the largest contiguous land package of any exploration company in the region at 400km2 and overlays a 38km portion of the prolific Senegal Mali Shear Zone. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.
SIBANYE-STILLWATER LIMITED - a clear buy
Sibanye-Stillwater, based near Johannesburg, is South Africa's leading producer of gold and precious metals and is also one of the world's largest players. The Group operates a total of 10 mines, 8 of which are located in South Africa and 2 in the USA. The Group holds a strong platinum and palladium position, with their combined production accounting for almost 40% of the Group's sales. Analysts estimate Sibanye-Stillwater's revenues at USD 7.9 billion in the past fiscal year and USD 9.9 billion in the current year.
Even more intriguing is a look at earnings forecasts and company valuations. For 2020, the average expectation of the experts is a consolidated profit of USD 1.7 billion. In 2021, this is expected to increase by over 70% to USD 3 billion, resulting in a low 2021 P/E ratio of 4!
While the stock has had a phenomenal performance in recent months, the signs still point to growth. Sibanye-Stillwater's strong market position lends security. Also, a very favorable Company valuation allows only one conclusion: Buy. This opinion is also shared by the majority of the 11 analysts who rate the share and calculate an upside potential of 23%.
DESERT GOLD VENTURES INC - waiting for exploration results
The second company we are looking at is also active in the African mining sector. Desert Gold Ventures Inc. is a gold exploration and development company focused on two projects in Mali. The 1.2 million sq km West African nation is one of the continent's top 5 gold producers.
At the core of the portfolio are two gold exploration permits with large land areas: the SMSZ project and the Djimbala project. A few weeks ago, the joint venture partner, Indigo Exploration, in which Desert Gold also holds an interest, announced that they had started exploration work at the Djimbala Gold Project. The Djimbala Gold Project impresses with its sheer size of 100 sq km. The project's proximity to active producing mines is already a positive.
In the summer, when the share reached a high of CAD 0.35, a consolidation phase set in. At the current price level of CAD 0.15, Desert Gold is valued at only CAD 21 million. As soon as new information about the ongoing exploration program is released, the chances of returning to the summer high are good.
BARRICK GOLD CORPORATION - solid spot landing
Last week, Barrick Gold reported production data for the past fiscal year, meeting previously formulated gold and copper output forecasts. Barrick operates in 13 countries worldwide, particularly in North and South America, and Africa. The portfolio includes many of the world's most prolific gold districts and includes several copper projects.
In 2020, a total of 4.8 million ounces of gold were produced, hitting the Group precisely in the middle of the forecast range of 4.6 to 5.0 million ounces of gold. In terms of copper production, 457 million pounds' production volume was at the lower end of the spectrum. On February 18 the Group will release more details on Q4 and the past fiscal year.
Barrick Gold is the second-largest gold producer in the world. If you believe in a gold price rise, you can't avoid the stock as a fundamental investment. Analysts are optimistic and believe that the share price will increase by 32%.
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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.