September 10th, 2021 | 13:50 CEST
Sierra Grande Minerals, Barrick Gold, Sibanye Stillwater - Tempting valuation levels
Patience is a virtue. Especially on the stock market, investors are often required to be patient. Why do rising prices take so long to materialize, even though the relevant facts are already on the table? One or the other investor who has invested in commodity shares has undoubtedly experienced this or a similar situation. But those who take a longer-term view and make the proper sense of the relevant framework conditions that determine supply and demand will be successful. Precious metals have proven to be a protection against inflation over long periods of time. Various raw materials such as copper and lithium are experiencing rising demand as a result of electromobility. These three stocks offer opportunities.
time to read: 3 minutes
|
Author:
Carsten Mainitz
ISIN:
Sierra Grande Minerals | CA82631L1085 , BARRICK GOLD CORP. | CA0679011084 , SIBANYE STILLWATER LTD. | ZAE000259701
Table of contents:
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
Tag cloud
Shares cloud
SIERRA GRANDE MINERALS INC - Geochemical soil sample results published
Based in the Canadian province of British Columbia, the Company specializes in the exploration of gold, silver, copper and molybdenum projects in their absolute early stages. In the past, the Company focused on two regions: the US state of Nevada and Peru. With the sale of exploration rights for two properties in the Andean state, the Company now operates exclusively in the USA.
In the "Silver State" of Nevada, Sierra is currently exploring the three projects Glitra/Sat, Mildred/B&C Springs and Betty East, all of which are located on the Walker Lane Trend, which is historically known to be high grade. The collection of 1,805 soil geochemical samples at 50m to 100m intervals was completed in late May. The results are now available.
At Glitra, a prospective north-northeast trending mineralized and altered zone over 1km long has been identified, ranging in width from 150m to 200m. Consistently high gold-in-soil results were noted along the north-northeast trend. An additional 77 claims were staked by Sierra along this trend, increasing the size of the Glitra property by a factor of five. Sat also delivered encouraging results. An additional 19 claims were staked, roughly doubling the size of the property.
President and CEO Sonny Janda commented, "The results of our soil sampling programs are very encouraging and demonstrate the potential for exciting discoveries at Glitra/Sat. The subsequent second phase of exploration will include geological mapping, ground-based IP and airborne magnetic surveys and ultimately initial RC drilling to test the most prospective of these targets. In addition, we look forward to releasing the results of the ground geochemical surveys from our other two projects, B&C Springs and Betty East, as they become available."
Further project progress could significantly move the share price, which is also traded in Frankfurt, at any time. The Company currently has a market capitalization of only about CAD 4 million.
BARRICK GOLD CORPORATION - Gold price trumps dividend policy
The share of the world's second-largest gold producer could not escape the slide of gold below the USD 1,800 mark. It does not help that the Canadians, valued at CAD 44 billion, recently paid a special dividend of CAD 0.14 per share in addition to a quarterly dividend of CAD 0.09 per share. However, recent newsflow underscores its strong position as one of the industry's top dogs.
Nevada Gold Mines (NGM) recently entered into a definitive asset swap agreement to acquire from i-80 Gold Corp. the 40% interest in the South Arturo joint venture and a low-cost option to acquire the adjacent Rodeo Creek exploration property in exchange for the Lone Tree and Buffalo Mountain properties and infrastructure currently under care and maintenance. Nevada Gold Mines is a joint venture between Barrick and Newmont. Barrick holds a 61.5% majority interest, with Newmont holding the remaining shares. NGM was formed in 2019 with the contribution of significant assets in the US state of Nevada with no less a goal than to create the largest gold production complex in the world.
SIBANYE STILLWATER LIMITED - 2022 P/E ratio of 3.7 and 10% dividend yield
The South African stock is among the cheapest precious metals producers in the world. Despite recently reporting record first-half results, the share price is crumbling. Improved operating performance, combined with significantly higher commodity prices, led to a 160% increase in net income to USD 1.74 billion. Basic earnings per share were USD 0.58.
In presenting its figures, the group reiterated its strategy to build an operating portfolio of green energy metals and related technologies alongside its established business. So far, the South African Company has mainly produced gold and platinum group metals. Valued at USD 10.8 billion, the Company has a 2022 P/E of just 3.7 and a dividend yield of around 10%. The launched share buyback program has not given the share price any positive impetus so far.
Patient investors should find attractive investments among the shares presented. Barrick is the world's second-largest gold producer and benefits from higher precious metal prices. Sibanye is also a heavyweight with an extremely low company valuation. Those looking to participate in the growth of a fledgling company with good project quality should consider Sierra Grande Minerals. The Canadians are valued at only CAD 4 million.
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.
Risk notice
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.
The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.
