Close menu

October 6th, 2021 | 10:26 CEST

Steinhoff, MAS Gold, Infineon - The sleeping giant

  • Gold
Photo credits:

Rising inflation, historically high government debt, and central banks continue to open the money floodgates and keep interest rates at zero. One would think gold should be more in demand than ever due to the general data. But the precious metal has remained in a deep sleep since its highs of last year. The situation resembles that of about 5 years ago. Back then, the gold sentiment was poor, and interest in gold mining stocks was low until the precious yellow metal put in a performance of just under 30% in the subsequent 6 months. Incidentally, the gold mining index XAU exploded by around 180% in the same period.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: STEINHOFF INT.HLDG.EO-_50 | NL0011375019 , MAS Gold Corp. | CA57457A1057 , INFINEON TECH.AG NA O.N. | DE0006231004

Table of contents:

    Justin Reid, President and CEO, Troilus Gold Corp.
    "[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

    Full interview


    Fear of interest rate hikes

    In addition to the FED chief Jerome Powell, the ECB's monetary watchdog Christine Lagarde is also holding back with clear statements on a possible interest rate hike next year. In general, it is still believed that the rising inflation is temporary due to the recovery after the Corona pandemic and will return to normal next year. For example, at the last Fed meeting, it was merely signaled that bond purchases, known as tapering, would be "gradually" reduced starting in November. In the coming year, it could also be possible to turn the interest rate screw. Clear commitments look different.

    In reality, leverage levels are likely to make it difficult for central banks to raise interest rates, primarily since leading indicators in the United States are already pointing again to an economic downturn. If this proves true, the FED is more likely to counter with further additional monetary easing.

    Mining stocks attractive

    The sharp correction since August of last year offers attractive long-term buying opportunities for mining stocks. From a technical point of view, there is still a short-term setback potential for the gold price up to the area of around USD 1,620. Still, in the long term, investors should already start building up anti-cyclical positions for portfolio additions.

    In this category also falls the mining exploration Company MAS Gold, which concentrates on projects in the promising greenstone belt La Ronge in Saskatchewan, where resources of over 1 million ounces are suspected. Saskatchewan was ranked #1 among 111 jurisdictions in 83 countries for mineral exploration and mining opportunities.

    In this belt, equipped with world-class infrastructure, MAS Gold operates the 100% owned North Lake, Point Gold, Elizabeth Lake & Henry Lake & Contact Lake gold projects, each hosting drill-discovered zones of gold mineralization. The geology of the belt is similar to high-grade regions in West Africa.

    Strategically, the Canadians are pursuing a "Hub And Spoke" model. The concept is based on the idea that mineralized material from various satellite deposits will be brought together in a centrally located facility near North Lake, providing the opportunity for efficient operations. In addition, management continues to search for other historic resources in the belt to expand the existing portfolio further.

    The highly experienced team led by mining veteran Jim Engdahl has much to look forward to in the future. In addition to a strategic partnership with Sprott Securities, MAS Gold also has a long-standing stable relationship with its major shareholders. The stock market value of currently EUR 7.71 million could be raised quickly if the business continues to develop positively.

    Chips the new gold

    The continued extreme shortage of semiconductors promises further good business for the DAX Company Infineon. Based on this, the Munich-based company expects a strong 2022 fiscal year. According to Company reports, sales should increase in the range of 15% in the 2021/2022 fiscal year, while the operating margin should rise to around 20%. The preliminary figures for fiscal 2020/2021, which ended September 30, met the communicated forecasts. Sales came to EUR 11 billion with a segment profit margin of over 18%.

    Both analysts and investors were enthusiastic. Thus, Infineon remained on the "Conviction List" of the US investment bank Goldman Sachs with a confirmed price target of EUR 45. Kepler Chevreux and UBS upgraded the share, which was trading up more than 3%, to "Buy".

    Partial success at Steinhoff

    The situation remains serious at the crisis-ridden retail group Steinhoff. Nevertheless, the heavily indebted German-South African Company was able to celebrate a success. The first part of the settlement proceedings was concluded in the Netherlands. Here, the settlement is legally binding after a final appeal period against the settlement confirmation by the competent court in Amsterdam has expired.

    The future of Steinhoff in South Africa will now be decided. Here, in addition to the second part of the settlement proceedings, a petition for compulsory liquidation by the former owners of Tekkie Town is pending. The petition is blocking a final conclusion of the settlement proceedings. The share remains hot and not for the faint of heart.

    Despite the favorable framework data, the gold price is correcting. Investors should take the opportunity to build up long-term positions in gold producers or gold explorers such as MAS Gold. Infineon is currently in a gold rush due to the chip shortage, but serious investors should keep their hands off Steinhoff.

    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 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.

    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

    Related comments:

    Commented by Stefan Feulner on June 2nd, 2023 | 08:00 CEST

    ThyssenKrupp, Orestone Mining, Nevada Copper - Optimistic about the future

    • Mining
    • Copper
    • Gold
    • Silver

    Overall, copper is an indispensable part of the green transformation due to its excellent electrical conductivity, corrosion resistance and reliability. It enables the efficient use of renewable energies, promotes electromobility and supports sustainable infrastructure development. Due to recession fears, the base price corrected strongly in recent months. In the long term, copper should make a renewed attempt to reach new highs due to high demand and too little supply.


    Commented by Nico Popp on June 1st, 2023 | 07:30 CEST

    The breaking point for the dollar - All new for gold? Barrick Gold, PayPal, Tocvan Ventures

    • Mining
    • Gold

    'Dr. Doom' Nouriel Roubini not only predicted the world financial crisis. The Stern School of Business economist in New York also heralded the Corona Shock. Now Roubini predicts the end of the dollar's supremacy. Here is what that could mean and which companies might even have opportunities as a result.


    Commented by Armin Schulz on May 30th, 2023 | 10:00 CEST

    Barrick Gold, Desert Gold, Deutsche Bank - What happens after the US debt ceiling is lifted?

    • Mining
    • Gold
    • Copper
    • Banking
    • Investments

    In the US, the Democrats and Republicans have agreed on a compromise in the debt dispute. This means that the US can take out more loans, which will ultimately result in an increasing money supply. This could further fuel inflation, while on the other hand, it could boost the gold price. In recent months, the gold price has soared due to the turbulence in the banking sector and was able to mark a new high. Nevertheless, this is remarkable because the FED had raised interest rates significantly, which would typically have tended to argue for a falling gold price. If interest rates do not rise further or even fall, this would be another positive signal for gold. We, therefore, look at 2 gold companies and analyze Deutsche Bank.