May 31st, 2021 | 09:29 CEST
Steinhoff, Osino Resources, Barrick Gold - From gambler stocks to gold pearls
What is the best way to invest your money? Opinions are divided on this question. Some want to make a quick profit and are prepared to accept significant losses to do so. But this path is psychologically complex for most people to cope with. Then there are the growth-oriented ones, who are willing to take calculable risks and make bigger profits. The last group invests conservatively and wants to build up a passive income over the long term through dividends. They shy away from risk. In line with this categorization, we have picked out 3 stocks today, taking into account the title of the Frankfurter Allgemeine Zeitung: Has the commodity super cycle begun?
time to read: 2 minutes
|
Author:
Armin Schulz
ISIN:
NL0011375019 , CA68828L1004 , CA0679011084
Table of contents:
"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
Tag cloud
Shares cloud
Steinhoff - It remains exciting
For months, the question has been discussed whether Steinhoff will succeed in putting the accounting scandal behind it, which almost brought the Company down. The Company is still in the process of restructuring, and accounting freedoms are being used very cleverly. The Pepco investment was successfully placed on the Warsaw Stock Exchange and floated. In addition to proceeds of around EUR 900 million, the value of the investment in Steinhoff's books was significantly adjusted upward.
Another important role in the settlement negotiations with creditors is the subsidiary Pepkor, which covers 50% of the receivables. In April, a real estate deal between Steinhoff International Holding and Pepkor was rubber-stamped, with Steinhoff reporting a bottom-line book gain of about 50% on the previous Pepkor valuation. Pepkor's numbers were substantial in both revenue, +8.1%, and operating profit, +18.5%.
Shareholders are currently waiting for June 4, when the court in Amsterdam will address the Hamilton and Lancaster motions. Steinhoff, therefore, remains a hot bet that should only be taken by very speculative investors. If Steinhoff gets back on its feet, larger price jumps beckon, but a total loss is also possible.
Osino Resources - Great potential
Osino Resources is led by an experienced management team that sold the then Namibia project Auryx Gold to B2 Gold for USD 160 million in 2011. The new project area is 6,577 km² and the current main project is named Twin Hills. It is located north of the country's capital and benefits from good infrastructure and a mining-friendly government.
Following the initial discoveries at Twin Hills, accelerated project development was decided for 2021, as there are already two producing gold mines nearby. On May 26, the Company announced that 32,893m of 42,000m of in-fill holes have already been drilled. Of the planned 25,000m of exploration drilling, 17,889m has already been completed. Gold up to 2.66g per ton has been detected. More than 130 assay results are still pending and these should be available in two months at the latest.
The Company has a large exploration pipeline, and Twin Hills is just the beginning. The shareholder structure can also be seen as a plus: 34% are in institutional hands, 38% are held by insiders and only 28% by retailers. In addition, the gold price is currently rising. Anyone who wants to invest in gold is certainly in good hands here in the long term.
Barrick Gold - Profits from high commodity prices
Barrick Gold, one of the world's largest gold producers, announced its first-quarter 2021 results on May 5. The Company increased its profit by 78%. Revenue for the first quarter was nearly USD 2.96 billion, an increase of 8.8%. Due to high gold and copper prices, January-March 2021 net income was USD 507 million, up from USD 285 million year-on-year.
Gold production declined 12% to 1.1 million ounces. Despite this, production targets for 2021 are expected to be met. The Company improved on many ESG metrics and the Porgera project may resume operations. There were also some promising drill results from the exploration program.
As icing on the cake, in addition to a quarterly dividend of USD 0.09, shareholders will receive one-third of the USD 750 million capital return distribution of USD 0.14 per share. The record date for receiving this special distribution was May 28. Barrick Gold's stock has broken the downward trend of consolidation and will certainly see higher prices as gold and copper prices rise.
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.
