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June 22nd, 2021 | 14:07 CEST

Steinhoff, Barsele Minerals, Bayer - This is explosive for the stock markets

  • Investments
Photo credits: pixabay.com

Will the central banks change their direction, or will "the policy of cheap money" remain in place with unlimited bond purchases and zero interest rates to benefit growth? Last week, the markets were already caught on the wrong foot after the FED forecast two interest rate hikes for 2023. Then, the President of the St. Louis Fed, James Bullard, added even more salt to investors' wounds. He sees an accelerated tightening of monetary policy as a normal reaction to economic growth and rampant inflation in the wake of the economy's return from the Corona shock.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NL0011375019 , CA0688921083 , DE000BAY0017

Table of contents:


    Losses across the board

    Markets around the world fell sharply on fears of an earlier-than-expected turnaround in interest rates. The US Dow Jones and the market-wide S&P 500 indices posted their worst week since October of last year, and the Asian stock markets also fell, with a disproportionate drop of almost 4% yesterday. Already in the run-up to the FED meeting last Wednesday, the precious metals corrected sharply. If the gold followers were still hoping for a breakout above the striking resistance at USD 1,920, the positive picture from a technical perspective was negated with a sell-off to the USD 1,764 mark.

    From a technical perspective, this sharp correction makes it likely that the price of the precious yellow metal will once again test the double bottom formed in April at USD 1,680. However, in the long term, the fundamental facts, such as the escalating national debt, offer good anti-cyclical opportunities to participate in the rising gold price. In addition to an investment in bars or coins, stocks of gold mine operators in particular offer opportunities for above-average price gains.

    Pure gold in Europe

    If you ask investors about the best gold deposits in the world, the answer is South Africa, the USA or Australia. Hardly anyone has the Scandinavian countries on their radar. Yet Sweden is considered one of the safest and best gold sites globally because of its long mining history. About 500 km from the capital Stockholm, the Canadian exploration Company Barsele Minerals has a treasure in its hands with an exploration potential of no less than 3.5 million ounces of pure gold. The Barsele Project is nearly 47,000 hectares in size and is located in the Fennoscandian Shield that intersects the historically high-grade "Gold Line."

    Previously, Barsele Minerals held a 45% interest in the eponymous project, with the majority 55% held by industry giant Agnico Eagle, which has been the lead exploration program manager in recent years. Over the past six years, nearly 156,000 meters and 404 drill holes have been completed. Last month, a letter of intent was signed between the two parties whereby Barsele will acquire the 55% of Agnico Eagle by paying USD 45 million to become the sole owner. The exclusivity period runs until July 30, 2021, and can be extended for another 31 days under certain conditions. The transaction is to be financed through the issuance of a convertible bond. At the final closing, Barsele will also grant the contractual partner its own shares with a volume of 14.9% and 6 million warrants.

    Two years ago, an independent appraisal produced a resource estimate of 2.5 million ounces. A further 30,000 meters of drilling are now planned over the next two years. The target of the experienced management is 3.5 million ounces. Should the estimate only come close to being realized, the shares of Barsele Minerals have multiplication potential. Currently, the stock market value is around CAD 90 million. In addition, if the results continue to be positive, the project should be a potential takeover candidate for the major gold producers. Act counter-cyclically!

    Steinhoff subsidiary with results

    Steinhoff Investment Holdings, a subsidiary of Steinhoff International, reported an operating profit of ZAR 5.2 billion after material expenses in the six months to the end of March. This, compared with an operating loss of ZAR 10.6 billion a year earlier, after foreign exchange gains and a strong performance from Pepkor Holdings, supported the result. Sales from continuing operations increased 8% to ZAR 36.5 billion. Realized foreign exchange gains were ZAR 3.7 billion, compared with a loss of ZAR 4.8 billion in the same period last year.

    Provisions for the litigation settlement proposal were increased from ZAR 9.4 billion to ZAR 10.6 billion, resulting in an additional expense of ZAR 1.2 billion. A dividend of 292.43 cents per preferred share was also declared.

    Positive voices for Bayer

    According to analysts at Deutsche Bank, record prices for agricultural commodities should give Bayer AG's results some room to run. Thus, analyst Falko Friedrichs left the pharmaceutical giant's shares with a price target of EUR 66.

    Another positive was a study by the European Food Safety Authority (EFSA), which considers the controversial weedkiller glyphosate harmless and favors a renewed approval. Animal studies, epidemiological studies and statistical analyses have shown that the product is neither carcinogenic nor mutagenic and therefore poses no risk to consumers. The testing authorities reached this concordant assessment in France, the Netherlands, Sweden and Hungary, which EFSA had commissioned.


    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.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



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