Close menu




June 4th, 2021 | 09:27 CEST

Troilus Gold, First Majestic Silver, Sibanye Stillwater - This will move the prices!

  • Gold
Photo credits: pixabay.com

The reasons to invest in precious metals are manifold: as protection against inflation, as a crisis currency, or to profit from increasing industrial demand. In addition to investing in gold or silver bars, certificates or funds, active investors are likely to focus on direct investment in stocks that offer good opportunities. The universe is huge, and there is the right opportunity for every risk appetite. Exploration companies searching for raw materials, development companies busy building the mine and ramping up production, or producers, whose success shareholders can ultimately participate in through dividend payouts. Below are three promising stocks that have recently published excellent news.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: CA8968871068 , CA32076V1031 , ZAE000259701

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

     

    TROILUS GOLD CORP - Impressive progress

    Troilus Gold is an extremely exciting stock. The Toronto-based Company plans to put the formerly producing Troilus gold and copper mine in Quebec back into production. The mine produced more than 2 million ounces of gold and nearly 70,000 tons of copper from 1996 to 2010. However, with the onset of price declines, production was halted at that time. Last year's positive PEA profitability study shows how profitable the business could be in the not-too-distant future. At a gold price of USD 1,950, from which we are currently not far away, the mineral deposit value is USD 1.156 billion. However, to enable production, investments of USD 333 million will have to be made, which will be quickly recouped given a planned long operating life of 22 years and a forecast average annual production of 246,000 ounces of gold in the first 14 years. A key figure that is often used to assess profitability is the IRR. Assuming the above parameters, this is 38.3%. Values around 40% bring a smile to investors' faces.

    Troilus is continuously improving its strategic land position, which recently grew by 35,000 ha to 142,000 ha (1,420 sq km) northeast of the Val-d'Or district in Quebec through an acquisition. In mid-May, the Canadians were able to announce an expansion of the western J Zone. The gold mineralization extends over approximately 1.5 sq km, with the geological structure remaining open on all sides. The drilling program started in February continues. The areas below and around the former pits of the "old" mine contain estimated indicated and inferred resources of 4.96 million gold equivalent ounces at a gold grade of 0.87 g/t.

    A few days ago, the Company announced the completion of the previously announced merger of Troilus Gold and UrbanGold. UrbanGold shareholders hold 12.9% of Troilus after the transaction. This deal is a win-win for both parties. The land package increases significantly, and several defined target zones are close together. The Troilus Gold Project has excellent potential, which will be documented by the ongoing exploration and progress. The next milestone is the pre-feasibility study in the current year. With a market capitalization of CAD 181 million, the Company is a clear buy.

    FIRST MAJESTIC SILVER CORP - Silver producer acquires first gold mine

    The founder and CEO of First Majestic Silver, Keith Neumeyer, is an old hand and knows what he is doing. And what if, after a long search of suitable acquisition targets, the corporate head of a silver producer concludes that there are none? Neumeyer's answer at the end of April was to buy the Jerritt Canyon Mine in Nevada. The gold project in the US state is 308 sq km in size and has produced around 9.7 million ounces of gold over the past 20 years. The seller of the mine is Sprott Mining. The entry into gold production is a novelty, but First Majestic is now also operating outside Mexico for the first time.

    Regarding the outlook: even though the most recently presented Q1 figures were okay, the medium-term outlook is a burden. The Company currently has only three mining projects in Mexico, all of which have remaining theoretical lives of less than six years. That is a little too little for shareholders who want to strike it rich. The annual report presented at the end of March already revealed the weakness in the reserves and resources balance sheet. Silver reserves were down a whopping 26%, and gold reserves were down about 17%. Now that the Canadians have "topped up" elsewhere, analysts nevertheless remain skeptical and consider the stock to be maxed out at prices around CAD 22 and a market capitalization of CAD 5.6 billion.

    SIBANYE STILLWATER - Share buyback announced

    Sibanye-Stillwater is Africa's largest gold producer and among the world's leading platinum and palladium producers. Earlier this year, the South Africans announced their entry into the battery metals sector through a partnership with and investment in Keliber. The Finns are among the leading European lithium companies. Entering and perhaps rapidly expanding its footprint in battery metals or strategic metals is certainly a new and exciting chapter. Nevertheless, for the time being, everything revolves around precious metals. And here it quickly becomes clear: the stock is far too cheap. Given the 2022 earnings, it currently calculates a P/E ratio of 4.4. On June 1, the group announced its intention to acquire 5% of its shares. Currently, Sibanye is valued at a market capitalization of USD 14.9 billion. On average, analysts believe that the shares have a potential of 26%.


    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.

    Risk notice

    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.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    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



    Related comments:

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on December 1st, 2022 | 09:46 CET

    BYD, Auxico Resources, Hensoldt, Rheinmetall - Prepared for the future

    • Mining
    • Gold
    • RareEarths
    • Defense

    Russia's invasion of Ukraine at the end of February this year changed everything. While global stock markets fell into a state of shock, shares in defense companies boomed. With the arms buildup in the Western world, the future looks bright for companies that were still viewed critically before the war of aggression. However, in order to produce enough tanks, aircraft and other war equipment, the industry needs a variety of critical metals for which demand already exceeds supply.

    Read

    Commented by Stefan Feulner on November 22nd, 2022 | 13:42 CET

    Favorable starting positions for Commerzbank, Desert Gold and BioNTech

    • Mining
    • Gold
    • Investments
    • Biotechnology

    The suspected downward pressure due to uncertainties in the economy and geopolitics has so far failed to materialize. Instead, the most important stock indices, such as DAX or Dow Jones, were able to leave their short-term downward trends and are sending signals for a further upward push. In addition to the stock market, the precious metals sector was also able to turn around. Here, in particular, entry opportunities beckon at a significantly reduced level with the chance of long-term, disproportionate price gains.

    Read