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December 17th, 2021 | 14:06 CET

Triumph Gold, First Majestic, K+S - Something is happening here!

  • Gold
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Inflation has reached its highest level in decades in many countries. Even though the US Federal Reserve has already sent clear signals for upcoming interest rate increases, the real interest rate will remain negative for a long time, and the loss of purchasing power will be felt. In such a situation, investors can protect their money by investing in tangible assets such as stocks, real estate, and commodities.

time to read: 3 minutes | Author: Carsten Mainitz

Table of contents:

    Gary Cope, President and CEO, Barsele Minerals
    "[...] We are convinced that we could already leverage significant potential with a drilling program of around 35,000 meters. However, to finance this, we need a decision. Fortunately, there are already interested parties who can imagine advancing Barsele together with us. [...]" Gary Cope, President and CEO, Barsele Minerals

    Full interview


    Triumph Gold - Well positioned

    The signs are good for rising gold and copper prices in the medium term. The precious metal is traditionally used as a crisis currency in times of high inflation and turbulent stock markets. The triumph of electromobility is leading to a significant increase in demand for the red industrial metal. This big picture makes the stock of exploration company Triumph Gold attractive. The Canadians own 100% of the Freegold Mountain project, which is 200 sq km in size. The project is located in the Dawson Range copper-gold belt in the mining-friendly Yukon and hosts three mineral deposits, Nucleus, Revenue and Tinta Hill. Triumph Gold also owns 100% of the Big Creek and Tad/Toro copper-gold properties near the Freegold Mountain project.

    A drill program was initiated in the summer. Earlier this month, the Company reported data from three drill holes totaling 897m in the Blue Sky Zone (BSZ). The highlight was an intersection over a length of 106.5m with a mineralization of 0.76 g/t gold equivalent (AuEq). Drilling encountered multiple styles of mineralization, including porphyry style stockwork veins, disseminated sulphides, sulphide breccias and epithermal veins. With just under half of the drill program completed at this time, investors can expect more news soon. It should then provide more information about the potential of the Nucleus deposit, the Big Creek South fault zone and the Orbit zone. With a market capitalization of currently just under CAD 14 million, the Company is moderately valued.

    First Majestic - Analysts expect higher prices

    Recently, First Majestic Silver completed the previously announced issuance of unsecured convertible senior notes due 2027 in the aggregate principal amount of USD 200 million and placed an additional USD 30 million in volume through the full exercise of the over-allotment option granted to the initial purchasers. The initial conversion rate is 60.3865 common shares per USD 1,000 par value, representing an initial conversion price of approximately USD 16.56 (approximately CAD 21.21) per share. The notes bear interest at 0.375% per annum on a semi-annual basis.

    Currently, the shares of First Majestic Silver are covered by five analysts, who rate the stock with an average price target of CAD 20.34. Currently, this results in an upside potential of almost 50%. The Canadian Company has a market capitalization of CAD 3.5 billion.

    K+S - Hanging game over

    In recent weeks, the Kassel-based fertilizer group was able to end two important hang-ups. After extensive antitrust reviews, the establishment of the joint venture REKS for the disposal of hazardous waste with the Remondis subsidiary REMEX was finally waved through. Beforehand, however, REMEX had to sell its stake in competitor Minex.

    K+S expects the transaction to be completed before the end of the year. That will allow the Group to generate a one-time income of EUR 200 million in the fourth quarter. In addition, the Kassel-based Company will generate a cash inflow of about EUR 90 million before taxes. K+S thus renewed its guidance for the current financial year and now expects operating earnings (EBITDA) of EUR 830 million.

    In addition, the Group was able to report a success elsewhere. The financial supervisory authority BaFin had commissioned the German Financial Reporting Enforcement Panel (FREP) to examine the amount of impairment losses that affected the balance sheets for fiscal 2019 and the first half of 2020. The FREP has now concluded that everything was correct.

    To avoid a loss of purchasing power in times of high inflation, investing in tangible assets is a good idea. The general conditions for further increases in commodity prices are in place. That applies to precious metals as a crisis currency, copper in the course of electromobility, and agricultural commodities. Thus, all three described shares are worth a closer look. Triumph Gold seems particularly attractive to us.

    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.

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    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

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