April 8th, 2021 | 07:54 CEST
ThyssenKrupp, Barrick Gold, Goldseek Resources: These developments are only just beginning
Table of contents:
"[...] Our SMSZ project is the largest contiguous land package of any exploration company in the region at 400km2 and overlays a 38km portion of the prolific Senegal Mali Shear Zone. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.
ThyssenKrupp achieves turnaround
One stock benefiting from rising metal prices is ThyssenKrupp. The stock gained around 34% in the last three months. In the last fiscal year the Company was still well in the red and for the second year in succession paid no dividend. But the tide is slowly turning - thanks, in particular, to rising raw material prices and the recovering economy. Analysts also stress the growing importance of the hydrogen business for ThyssenKrupp. At the beginning of the year, ThyssenKrupp won a contract for an 88 MW water electrolysis project in Canada. More than 11,000 tons of green hydrogen are to be produced there each year.
In the first quarter the Company already performed significantly better than in the past fiscal year. In particular, the steel business, which had previously been loss-making, made good progress again. At the same time, ThyssenKrupp continued its cost-cutting measures and laid off employees again. These cost-cutting measures did the stock well. Coupled with the better outlook, the stock could be a good alternative in times of rising commodity prices.
Barrick Gold: Where is the fantasy?
When it comes to rising prices, investors also keep thinking about Barrick Gold. The giant gold miner is on the move worldwide and extracts gold from the ground on every continent. For investors, this reduces the risk - after all, geopolitical risks or natural disasters are not as significant in this way. But at the same time, this constellation also ensures that Barrick Gold can hardly break away from the gold price. Where there is hardly any risk, there is also no room for outperformance, and so the price of Barrick Gold sticks to the gold price. In the last three months, the share lost more than 10%. Barrick Gold seems to be protected on the downside for the time being, but for the share price to regain momentum, the gold price must rise more strongly again.
Goldseek Resources: Savings fox with a clear strategy
The situation is different at Goldseek Resources. The small gold developer from Canada operates in the Canadian provinces of Ontario and Quebec, where it is advancing several smaller projects amid established gold regions. Neighbors include Barrick Gold, Osisko Mining and several smaller companies. Goldseek aims to develop properties, prove up deposits and then achieve exits as quickly as possible. To do this, the management team is taking a lean approach that will reduce costs and ensure that the Company's capital is put to the best possible use in exploration. To ensure that these are not just empty words, Goldseek publishes the calculation: in 2020 and 2021, 81% of the funds are to flow directly into exploration, with the remainder going to fees, costs for accounting or legal advice, and other services.
So far, Goldseek Resources is relatively unknown among private investors - in February, the share of private investors counted only 11%. Management, on the other hand, held 61% and professional investors 28%. Yet, the Company's strategy could prove attractive, especially in times when the gold price is trending sideways. Since Goldseek Resources' projects are in the early stages, short-term fluctuations in commodity prices are not relevant. Instead, what matters is concrete success on the ground. Here, Goldseek has several irons in the fire with many small projects. That ensures a constant news flow and could lead to exits in the next few months. Even if the gold price currently shows little movement, the industry is still confident - the development of many other prices already points to an inflationary environment. If this scenario occurs, the gold market should also pick up again. Small companies in the gold sector, in particular, could be suitable for cautiously getting a foot in the door at present.
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.
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.