14. May 2021 | 11:09 CET
Troilus Gold, NIO, Steinhoff - Worries are on the rise!
Fears of rampant inflation are driving world stock markets lower this week. After the much higher than expected US consumer prices in April to 4.2%, the inflation rate is higher than at any time since 2008. However, the Federal Reserve, which should take preventive action against the overheated price increase, does not yet see any great danger in the significant rise and wants to continue to adhere to the ultra-loose monetary policy until at least 2023. Seldom have the conditions for an investment in gold been better than in the current situation. Take your chance!
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ISIN: NL0011375019 , CA8968871068 , US62914V1061
"[...] I wouldn't be surprised if the project ends up showing more than 5 million ounces. [...]" Gary Cope, President and CEO, Barsele Minerals
Troilus Gold - First Class Gold and Copper Asset
An experienced team combined with a first-class project. The goals that the junior mining Company Troilus Gold has set for the future sound ambitious. The team led by CEO Justin Reid wants to set up a cornerstone project in North America for generations to come. The Canadians are systematically advancing the former Troilus gold and copper mine, located in the world-class mining jurisdiction of Quebec. They own 100% of an area of 1,420 km² in the Frôtet-Evans Greenstone Belt.
Between 1996 and 2010, the previous owners were active in open pit mining. They only recovered 2 million ounces of gold and 70,000 tonnes of copper during that period due to a lack of investment in exploration. Since the 2017 acquisition, indicated mineral resources have expanded by 142% and inferred mineral resources by as much as 350%. The average gold grade is 0.84 to 0.87 grams per tonne. Positive drill results were again reported last week, confirming management's belief in the great potential of the Troilus Project.
New broad gold zones were identified in the J Zone, close to surface and directly adjacent to the former operation. Further drilling is now planned in this new area of interest. Currently, two drill rigs are focused on expansion and delineation in advance of a mineral resource update and pre-feasibility study to be completed in the second half of 2021. Troilus has completed 32,000 meters of drilling since January 2021 and intends to drill approximately 10,000 meters per month throughout the summer.
Troilus Gold has the potential to be a first class project in North America. Currently, the Company has a market value of EUR 100.9 million. At current levels, the stock is suitable for both speculative and long-term investors and is already more than a portfolio addition.
NIO - Positive trend
Electric carmaker NIO made significant gains in its sales figures for April 2021. NIO delivered exactly 7,102 electric cars in April, 125.1% more than in April of the previous year. While they were also affected by the global chip shortage, this was still the third time this year that they delivered more than 7,000 vehicles in one month. Only in February was this mark broken. The flagship models with 5,579 units were the smaller ES6 and EC6 SUV models, while the larger ES8 achieved 1,523 sales.
The European expansion is also currently progressing positively. The Company is planning to build the first "NIO House" outside China. The still young Company wants to settle in Oslo. "We have been operating our design center in Munich since 2015, we have a performance team in Oxford, and we have our software team in San José in Silicon Valley. We now employ more than 9,000 people from 45 countries," CEO and founder William Li said in a press release. "We entered the market first in China. Now it is about bringing our brand and products to Europe."
In the long term, NIO plans to market its entire product range in Europe. However, it will first start with the ES8 electric SUV, which can already be pre-ordered from July this year. The ET7 sedan is to follow next year. From a chart perspective, the share was down just under 2% yesterday at USD 33.14, and there is still no relief in sight. Instead, the chart points to a test of the critical support zone. Thus, we advise waiting with an investment.
Steinhoff International - The past catches up
There is still a lot of turmoil in the crisis-ridden group. After the launch of the IPO of the subsidiary, Pepco, on the Warsaw Stock Exchange was announced, the subscription period for institutional investors and only private investors from Poland still runs until 14.5.2021. Now comes renewed trouble on the group. Tekkie Town, a South African shoe retail chain, was sold to the Steinhoff Group in 2016.
The payment of the purchase price was made at that time mainly with shares of the Steinhoff Group. As already known, the balance sheets were not kept entirely correctly, and the shares were thus, in the opinion of the former Tekkie Town owners, valued too high as an exchange item. For this reason, the former managers are applying to the High Court of the Western Cape Region (SA) for the liquidation of Steinhoff Holding. It is still valid: Fingers away from this share!