Close menu




December 2nd, 2021 | 12:11 CET

Steinhoff, Triumph Gold, JinkoSolar - On a knife-edge

  • Gold
Photo credits: pixabay.com

The DAX was on the verge of falling below the 15,000 point mark, which had been successfully tested several times, and the nerves of traders and asset managers were put to the test concerning an impending sell-off in the leading index. Then the market turned around, and the chart picture brightened considerably. Chances for a conciliatory end of the year are still there, partly because on the part of science, at least a little confidence was spread concerning the omicron variant.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: STEINHOFF INT.HLDG.EO-_50 | NL0011375019 , TRIUMPH GOLD CORP. | CA8968121043 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007

Table of contents:


    Gold remains in the corridor

    Supporters of precious metals are currently experiencing difficult times. Gold as crisis currency or inflation protection? Historically, at least, this was the case, but nowadays, this legend no longer seems to apply in the age of historic sovereign debt, rapidly growing inflation rates and outbreaks of new virus variants. The movement last Friday was striking when Dow, DAX and Co. slid down after the panic-like announcement of the Omicron variant spreading from South Africa to the whole world. Investors who have been dealing with gold for a longer time would have expected an explosion of the base price, especially on that day. However, the result was a paltry gain and a short-term move above resistance at USD 1,800 per ounce, which was then sold off again in the course of trading.

    Temporary becomes permanent

    No, the chart of the precious yellow metal is not yet clear. In the short term, should gold again fall below the mark of USD 1,750 per ounce, the test of the annual low at USD 1,680 threatens. The asset class currently still leads a shadowy existence. According to investors, a greater return can be achieved with equities or cryptocurrencies. But beware, the picture is likely to change in the long term - at the latest when the central banks change their choice of words from "temporary" or transitory to "permanent" inflation. The room for maneuver of the monetary guardians is limited. Interest rate hikes on a larger scale that could curb price increases are hardly possible; this scenario would be equivalent to a collapse for indebted countries or institutions.

    For these reasons, investors should keep a close eye on the market and build up counter-cyclical positions in physical gold or gold mining stocks if the gold price continues to fall. In the long term, analysts and industry experts see the precious yellow metal rising to new highs. The largest producers Newmont and Barrick Gold, are among the basic investments. The exploration Company Triumph Gold offers an interesting rebound opportunity after the massive correction of the last three years, especially because the recently published results are more than optimistic for the future. The stock market value of the Canadian company is just EUR 11.82 million.

    Solid development

    The main focus of operations is in the mining-friendly Yukon. Led by experienced management, Triumph Gold is actively developing the Freegold Mountain project using multi-disciplinary exploration and evaluation technologies. The 100% owned project is equipped with world-class infrastructure and hosts three NI 43-101 compliant mineral deposits, Nucleus, Revenue and Tinta Hill. In addition, the exploration company owns 100% of the Big Creek and Tad/Toro copper-gold properties near the Freegold Mountain project.

    Back in September, Triumph Gold completed a ten-hole drill program totaling 6,615m of drilling. The first published partial results are optimistic for the future. The four holes evaluated have a total drill depth of 2,154m, and the best result was found in the drill core of hole RVD21-03. The chemical evaluation came from the ALS Global laboratory and determined gold equivalents of 1.98 g/t over a very long drill section of 80.5m. These gold equivalents consist of 1.52 g/t gold, 3.74 g/t silver, 0.18 g/t copper and trace amounts of molybdenum and tungsten.

    A total of 8,000m of drilling are planned for the full year. In addition, the remaining results from the missing six drill holes should be announced. Triumph Gold is currently receiving little attention from investors. In the event of a sustained rise in the gold price, it is precisely such stocks that could have the opportunity to outperform the general gold market.

    Hope dies last

    The Steinhoff trading group is also doing solidly in operational terms if one looks at the latest quarterly results of its subsidiaries such as Pepkor. However, legacy issues still threaten the existence of the German-South African company. The uncertainty is also reflected in the highly volatile share price. After peaking at EUR 0.23, the stock fell back to its breakout level again. The reason was the application of the former Tekkie Town owners for liquidation of the Steinhoff Group.

    Due to the application for liquidation, the decision on the settlement at the Western Cape High Court is suspended until the end of January. However, the strategy announced yesterday by the Supervisory Board concerning management remuneration gives existing shareholders hope that things are looking up for the beleaguered retail group. The Supervisory Board wants to propose an option program with Steinhoff shares for the management at the next general meeting. It will only make sense for the new management if these shares have value at some point. In case of failure, the new management would thus go away empty-handed.

    Stock option program or not. The court in South Africa will make the decision. Liquidation yes or no. As a result, an investment in Steinhoff still resembles a game of chance.


    After the sell-off, the DAX turned around just in time before the EUR 15,000 mark; the chart picture brightens up again about a conciliatory end of the year. Gold could not benefit despite good conditions but should prevail in the long term. Barrick Gold as a producer and Triumph Gold offer good opportunities for outperformance here. Steinhoff remains a gamble.


    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.


    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 November 22nd, 2022 | 13:42 CET

    Favorable starting positions for Commerzbank, Desert Gold and BioNTech

    • Mining
    • Gold
    • Investments
    • Biotechnology

    The suspected downward pressure due to uncertainties in the economy and geopolitics has so far failed to materialize. Instead, the most important stock indices, such as DAX or Dow Jones, were able to leave their short-term downward trends and are sending signals for a further upward push. In addition to the stock market, the precious metals sector was also able to turn around. Here, in particular, entry opportunities beckon at a significantly reduced level with the chance of long-term, disproportionate price gains.

    Read

    Commented by Nico Popp on November 11th, 2022 | 11:36 CET

    Jim Cramer warns, rally in the wings: Amazon, Commerzbank, Tocvan Ventures

    • Mining
    • Gold
    • Investments
    • ecommerce

    The German Retail Association reports that Christmas sales this year could suffer from poor consumer sentiment. The culprit - who would have thought - inflation. We explain that the fight against inflation is anything but a foregone conclusion and how investors can potentially make a big profit from the current mixed situation, using the three shares below as examples.

    Read

    Commented by Juliane Zielonka on November 11th, 2022 | 11:15 CET

    Globex Mining, Deutsche Telekom, Meta Platforms - Stormy times and a haven of calm

    • Mining
    • Commodities
    • Gold
    • Technology
    • bigdata

    Deutsche Telekom AG has announced its Q3 22 figures. The Bonn-based company is currently profiting from its US business, mainly due to the strong US dollar and customer growth. But in times of recession and inflation, consumption often stays up. 11,000 former Meta employees will likely tighten their belts a bit from now on, even if Mark Zuckerberg continues to pay them salaries for a few more months. His plans are ambitious, with AI expansion at the top of the agenda. It is good to take a closer look at rocks in the surf like Globex Mining. The Company owns 217 areas with valuable raw materials, precious metals and more, which are used in the computer and telecommunication industry.

    Read