Close menu

March 17th, 2022 | 10:08 CET

Uranium Energy Corp., Barsele Minerals, Endeavour Silver - Commodities for the future

  • Gold
  • Silver
  • Commodities
Photo credits:

We live in turbulent times: Climate change, e-mobility, traffic change. After the pandemic, the war in Ukraine is now shaking the world. Investors are fleeing to safe-havens. Precious metal prices have recently risen significantly, with the price of a troy ounce of gold moving towards an all-time high. Cryptocurrencies also made gains. Given the geopolitical and energy situation, high stock market fluctuations are still expected. Where is it worth taking a closer look now?

time to read: 3 minutes | Author: Carsten Mainitz

Table of contents:

    Uranium Energy Corp. - Short-term scare, but the rally continues

    The war between the Russian Federation and Ukraine, which has been going on for several weeks, has already presented many horrific images. In addition, reports of fighting around Ukrainian nuclear power plants, including the shutdown Chernobyl reactor, caused a scare among the world's population. Many felt reminded by rising columns of smoke of the April 1986 disaster and the March 2011 accident at Fukushima in Japan. Following the massive gains made by uranium companies since their classification as "green technology" by the EU Commission, some investors got cold feet and preferred to take the partly massive gains from the previous price rally.

    The same happened to the shares of the Texan Company Uranium Energy Corp. Since the beginning of the year, the Americans have come up with a very appealing news flow: Presentation of an S-K 1300 compliant resource estimate for the In-Situ Reno Creek project in Wyoming of about 32 million tons of triuranium octoxide (U3O8), freedom from debt after repayment of loans as well as the takeover of the Willow Creek properties of the competitor Uranium One. But last week, the share fell by nearly a third. And this despite the fact that the uranium price increased by more than 15% in the same period and almost doubled within a year. This price level allows the usually low-grade American mines to produce profitably.

    Barsele Minerals - Political security as an investment factor

    War in Europe - If the current news teaches us one thing, political stability is one of the most important criteria in investment decisions. Russian stock exchanges have been closed for over two weeks, and trading in Russian shares suspended. Russia is threatening Western companies with nationalization. Of course, this is an extreme example given the regional proximity, but especially in the mining sector, many companies are operating in politically fragile regions of the world.

    Barsele Minerals stands out positively in this respect, as the Canadian exploration company focuses on Sweden's politically and economically sound mining region. The Belcarra Group-led company, with a 45% ownership stake, is a junior partner in the joint venture developing the Barsele Gold Project. Senior partner Agnico Eagle (55% interest) is conducting and financing exploration on the property.

    In recent years, 404 drill holes totaling 155,000m have been drilled. The 2019 NI 43-101 compliant resource estimate indicated approximately 2.5 million ounces of gold. Currently working on expansion, the Company has formulated a next stage target of 3.5 million ounces of gold. The planned takeover of the share of Agnico Eagle by the Canadians failed in recent months. But the subject is not yet off the table.

    The size of the project and the Company's valuation speak in favor of the share. The Royal Bank of Canada already valued the project at USD 375 million in a 2016 survey - at a gold price of USD 1,350 at the time. The troy ounce stands at USD 1,900 now, and Barsele Minerals is valued at only CAD 65 million on the stock exchange.

    Endeavour Silver - Good figures confirm management's strategy

    The business figures presented last week for the full year 2021 have impressively confirmed the previous business strategy of the management. Production figures were consistently above forecasts. Sales were the highest in five years. And the decision to stockpile its produced silver and only put it back on the market when prices rise is also proving to be spot on given the current price trend.

    Despite the freeze on sales, a net profit of USD 0.08 per share was achieved, compared with USD 0.01 in the previous year. The Company is also gearing up for the future. A cooperation agreement was recently signed with Max Resource Corp., active in the Colombian copper belt.

    Uranium shares have celebrated a comeback in recent months, and the run should continue. Precious metals prove their worth in crises. If gold surpasses the all-time high in the coming months, gold stocks will benefit enormously. That will include Barsele Minerals. Those who want to bet on the precious metal's little brother, silver, should take a look at Endeavour Silver.

    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided 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 February 29th, 2024 | 08:00 CET

    Renk, Hensoldt and Desert Gold: Price gains with armaments and gold

    • Mining
    • Gold
    • armaments

    German defense stocks are currently in high demand. Rheinmetall shares have already gained 40% in the current year, while Hensoldt achieved a performance of 35% in the first two months of 2024. The figures for 2023 only dampened the mood briefly. What do analysts say about Hensoldt's share price potential? Stock market newcomer Renk still has to establish itself. But the IPO is beginning to bear fruit. Gold shares should also benefit from the global uncertainties. However, the performance of Barrick & Co. in recent years has been disappointing. Desert Gold could become the surprise stock of the year. According to experts, the explorer was the talk of the town at the recently concluded Mining INDABA trade fair in Cape Town, South Africa.


    Commented by André Will-Laudien on February 28th, 2024 | 08:00 CET

    E-mobility versus combustion engines: Tesla and BYD stumble, Mercedes-Benz and Globex Mining in Vogue!

    • Mining
    • Commodities
    • RareEarths
    • Electromobility

    The Tesla plant in Brandenburg is discharging polluted wastewater into the canals. Permissible limits for phosphorus and nitrogen are exceeded by up to six times. Elon Musk has not yet reacted to the accusations, as he is busy planning the expansion of his production facility. If the authorities were to take action here, the plant could also be subject to a production stop until the harmful sources are eliminated. Once again, environmental protection and the climate debate clash with the self-interest of foreign producers seemingly not on the radar of existing EU regulations. The water debate is nothing new. Since the plant in Grünheide went into operation, local communities have had to contend with a drop in the groundwater level because the plant draws an impermissible amount of water. For those finding Tesla unsympathetic due to these issues, look for other opportunities in the automotive sector!


    Commented by Armin Schulz on February 21st, 2024 | 07:30 CET

    Barrick Gold, Desert Gold, Renk - Golden times everywhere?

    • Mining
    • Gold
    • Defense

    The world is full of economic uncertainty and geopolitical tensions. These are ideal conditions for gold, which is still considered a safe haven. There are now several factors that point to a sustained upswing in gold prices. One factor is the increased involvement of central banks, which are increasing their reserves to an extent not seen for decades. Another factor is the discussion within the BRICS nations about introducing a new currency backed by gold as a counterweight to the dominant US dollar. Therefore, today, we look at two gold companies and shed light on Renk, a representative of the defense industry, which is also experiencing golden times.