16. September 2021 | 12:45 CET
Triumph Gold, First Majestic, Varta - Inflation is getting worse than we think - How to safeguard your assets!
Inflation in the US eased slightly in August from July's 5.4% to 5.3%. Nevertheless, this is a high value. It would be premature to derive a trend reversal from this. Far more dramatic are the rates of inflation in wholesale prices in Germany. As the Federal Statistical Office recently reported, these rose by 12.3% year-on-year in August. It was the most substantial increase since October 1974, during the first oil crisis. Investors should invest in tangible assets such as shares, real estate, commodities, or precious metals to protect their assets. Who offers the best risk-reward ratio?
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ISIN: TRIUMPH GOLD CORP. | CA8968121043 , FIRST MAJESTIC SILVER | CA32076V1031 , VARTA AG O.N. | DE000A0TGJ55
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
TRIUMPH GOLD CORP - Completed drilling program highlights potential
The Canada-based exploration company focuses on advancing its Freegold Mountain project, located in the mining-friendly Yukon and covering 200 sq km. The area is 100% owned by Triumph Gold and is located in the Dawson Range copper-gold belt. The property hosts three mineral deposits, Nucleus, Revenue and Tinta Hill. The Company also owns 100% of the Big Creek and Tad/Toro copper-gold properties near the Freegold Mountain project.
Recently, the Company announced the completion of a 19-hole, 6,615m diamond drilling program on the Freegold Mountain property in the Nucleus and Revenue areas. In advance of the campaign, the Company had completed an extensive study with Minerva Intelligence. This study involved the use of DRIVER artificial intelligence software. The analysis showed new gold and copper mineralization on Nucleus. Final assay results from the drill core are expected periodically in September and October.
Preliminary results confirm two intersecting styles of mineralization forming the Nucleus gold-silver-copper deposit and an intersection of sulphide replacement and epithermal mineralization near the regional South Big Creek fault. New mineralization was also intersected southeast of the Nucleus resource area.
"Triumph Gold has used enhanced deposit and geophysical modeling along with AI vectoring to identify and target under-explored areas of the Freegold Mountain project. We are very pleased to receive assay results confirming drill core observations from all areas, including newly identified mineralization intersected to the south and east of Nucleus," said Jesse Halle, VP Exploration at Triumph Gold.
Investors can eagerly await further news, which should then include final evaluations. Preliminary data is positive and confirms the potential of the project. With a market capitalization of CAD 22 million, the Company is definitely worth a closer look.
FIRST MAJESTIC SILVER CORP - 2022 should also be a record year
With this year's acquisition of the US gold mine Jerritt Canyon, the situation of the silver producer, which was focused exclusively on Mexico until then, has improved significantly. The Canadians still have the goal of becoming the largest silver producer in the world. The new US asset has dramatically increased the profitability of the group.
As CEO Keith Neumeyer recently detailed at the Gold Forum Americas 2021, 2021 will be a record year. The Company leader expects 2022 to be even better. Neumeyer based his confidence on further production expansion and the expectation of rising precious metals prices. In particular, he is bullish on silver. Because in his opinion, the ever-increasing demand from the areas of electromobility and solar will lead to a medium-term price increase. Analysts believe the title has an average price potential of 30%.
VARTA AG - Several negative factors: 4-month low marked
The share of the South German battery manufacturer has marked a new multi-month low in recent days. Prices around EUR 120 were last called four months ago. In particular, the current Apple figures have put the Varta share certificates under pressure, as Apple did not announce a new AirPod model as expected. Varta is a supplier to the US. The subsidiary VARTA Microbattery is already an innovation leader in micro-batteries and one of the market leaders in hearing aid batteries. Varta is also aiming to become the market leader in lithium-ion batteries for wearables, especially hearables.
A few months ago, the group also announced its intention to enter the electromobility market with large-format batteries. In addition to an unfavorable chart situation of the share, the recent coverage by Bankhaus Metzler with a rating of "Sell" and a price target of EUR 106 caused some disruptive fire. According to the analysts, the growth story of the battery manufacturer is fading. While there is a growing demand for batteries for wireless headphones, prices are coming under pressure in the face of increasing competition.
Investing in equities is the right response to rising inflation. Those looking to benefit from higher prices for precious metals and copper and looking away from established producers should look at the share of Triumph Gold. The share of First Majestic Silver is also interesting. In the case of Varta, the risks outweigh the rewards.