07. October 2021 | 12:54 CET
Tembo Gold, Gazprom, Standard Lithium - Annual high or downward trend?
Developments in commodities could hardly be more different at the moment. While gas, oil and also lithium are in strong demand, precious metals are a tragedy. The development of the shares of the companies active in the respective sectors is corresponding. The Gazprom share is at a multi-year high, and energy prices will be a topic at the next EU summit. After the all-time high at the end of September, Standard Lithium is in a sharp correction. Debt-free Tembo Gold is currently interesting for anti-cyclical investors and has published positive news.
time to read:
ISIN: TEMBO GOLD CORP. | CA87974N4057 , GAZPROM ADR SP./2 RL 5L 5 | US3682872078 , STANDARD LITHIUM LTD | CA8536061010
"[...] We can make a big increase in value with little capital. [...]" David Mason, Managing Director, CEO, NewPeak Metals Ltd.
Tembo Gold drills debt-free
One thing is clear, those who are currently buying gold stocks are buying against the trend. However, it is precisely in this anticyclical action that great opportunities lie. The nervousness on the stock markets is never-ending. Inflation and further insolvencies of Chinese real estate companies are only two critical topics. Next to industry giants like Barrick Gold is the still largely unknown explorer Tembo Gold. The Canadian Company has secured an area of 174 square kilometers in Tanzania. It is located in a very attractive gold region near Barrick Gold's Bulyanhulu mine. Bulyanhuluge is among the world's largest high-grade gold mines.
In September, Tembo detailed its planned drilling program. It is scheduled to begin in October and confirms positive results from earlier drilling. Drilling of 7,000 meters is planned. This is to be distributed over 54 drill targets which have been determined using Goldspot Technologies' artificial intelligence-based software. In this way, the assumed courses of the gold veins already found are to be discarded or confirmed. Tembo is debt-free and has just completed a CAD 2.3 million equity financing. Tembo CEO David Scott: "Thanks to the perseverance and commitment of our company's Tanzanian and Canadian leadership team, Tembo has succeeded in holding and expanding its concessions in one of the most promising areas of greenstone geology I've seen in my 20+ years as a geologist in Tanzania."
Gazprom: Plenty of reason to rejoice
Gazprom shareholders have reason to celebrate. The Russian gas giant's stock was down slightly yesterday, but that does not change that it has more than doubled this year and is trading near a multi-year high. Gazprom is benefiting from skyrocketing energy prices - especially for gas. The development has now even attracted the attention of politicians. The energy markets will be a topic at the meeting of the heads of state and government of the EU member states on October 21 and 22. In addition, Gazprom has won a stage victory in the dispute over Nord Stream 2. The European Court of Justice (ECJ) has ruled that Nord Stream 2 AG is entitled to take legal action against the amended European Gas Directive. The new rules came into force after the start of construction of the recently completed pipeline from Russia to Germany. They included requirements for the unbundling of gas sales and pipeline operations. Gazprom subsidiary Nord Stream 2 is fighting against this.
Standard Lithium: Correction soon over?
After the all-time high of around CAD 12.00 at the end of September, the Standard Lithium share is in correction mode. Although this is nothing unusual after the strong performance in the current year, the decline to below CAD 9.00 is quite severe. There is currently no operational news from the Company, but the correction is unlikely to be sustainable. The demand for lithium as a raw material for electromobility is too strong for that. Car manufacturers present new electric models almost daily. At the same time, only a few listed companies are available to investors for investment.
There is joy and sorrow in commodity stocks at the moment. Those who buy a gold stock like Tembo anticyclically could soon be rewarded. As long as energy prices remain this high, Gazprom shares will also remain strong. Standard Lithium shares will remain volatile in the future, but the trend towards electromobility should continue to support lithium prices in the future.