Close menu




September 16th, 2021 | 11:34 CEST

Valneva, Barrick Gold, Central African Gold: Inflation fears and liberation strike

  • Gold
Photo credits: pixabay.com

High inflation keeps investors on their toes. In August, the inflation rate in the US remained at a high level of 5.3% compared to the same month last year, as announced by the Labor Department of the world's largest economy. Therefore, the increase in consumer prices was only slightly below market expectations and the increase in July of 5.4%. Compared with the previous month, prices were 0.3% higher. Inflation data usually brings momentum to commodity stocks - positive as well as negative. This is as true for Barrick Gold as for Central African Gold, with one on a good path to higher prices. Valneva shareholders would like to see higher prices after the crash. However, analysts remain cautious.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: VALNEVA SE EO -_15 | FR0004056851 , BARRICK GOLD CORP. | CA0679011084 , CENTRAL AFRICAN GOLD INC. | CA1523761098

Table of contents:


    Central African Gold: Share with liberation blow?

    There is good news at Central African Gold Inc. The shares of the broad-based explorer based in Canada have developed positively in recent days, rising to CAD 0.17. Thus, it is at the upper end of the sideways movement formed since mid-August. The reason for positive development is, in addition to the continuing shortage of raw materials, also an operational announcement. A few days ago, the Company reported the successful completion of a financing round. It was oversubscribed at a price of CAD 0.15. The placement price close to the market price is additionally positive. With the inflow of funds, the Canadians can continue to advance their development projects consistently.

    Central African Gold is currently focusing on promising copper, cobalt and nickel projects in the Democratic Republic of Congo. These are not only to be developed but also subsequently operated. The Company benefits from an experienced local management team led by CEO Yves Kabongo. The Company owns a total of six mineral concessions with a total area of 176 sq km. Of interest to ESG investors: the areas also include forests and farmland. In the case of the King Luba properties, Central African owns 100% of the concessions. In addition, there is an option to participate in the state-controlled Musefu Gold Project. This project has historical grades of 2.5m at 28.4 g/t gold and 11m at 8.1 g/t gold. Thus, the Company is not dependent on the development of one commodity but is well diversified. If the sustainable jump above the CAD 0.17 mark succeeds, the chances for further share price gains are good. With the successful financing round, the liberation blow may have been achieved.

    Barrick: No impetus, no buy

    Investors have been waiting in vain for a liberation blow at Barrick Gold for quite some time. And even the continuing high inflation does not seem to be able to change anything. The gold price has been stuck in a rut for weeks. As a result, the urgently expected impetus for gold shares such as Barrick Gold is also missing.

    The industry heavyweight is dominated by negative news. In August, billionaire Stan Druckenmiller announced to the media the sale of his Barrick shares. The investor is considered a gold bull. At around EUR 16.50, Barrick shares are not only still in a downtrend but are approaching their low for the year. If inflation above 5% does not provide any impetus, a purchase is not pressing at the moment.

    Valneva: Analysts see no potential even after price slide

    The Valneva share has not yet recovered from the shock at the start of the week. The British government's cancellation of the supply contract for the Company's Corona vaccine, which is currently in development, came as a nasty surprise to investors. It led to an interim drop in the share price of around 40%. The canceled supply contract for the classic inactivated vaccine was worth USD 1.4 billion. The exact reasons are still unclear. In the meantime, the first analysts have spoken out and critically viewed the current situation. Oddo BHF was already somewhat cautious about the Valneva share before the negative news but now has again lowered the price target from EUR 12.60 to EUR 11.80. The rating is "Neutral". Analyst Martial Descoutures expressed surprise that the UK government decided so close to the publication of Phase 3 data on the Covid-19 vaccine. Further orders are not expected before positive test results, he said. US investment bank Goldman Sachs also sees little upside potential for Valneva shares at present. Although the rating is "Buy", the price target of EUR 15.50 is significantly below the share level before the crash. At least the analyst remains fundamentally optimistic and sees other contract opportunities at possibly even better conditions. It will probably remain exciting with the share.


    With the successful financing round behind it, Central African Gold's stock seems to be well on its way to achieving the liberation blow. Barrick Gold's stock is currently far from that. The coming weeks will be exciting for Valneva. A real liberation blow should only come with positive phase 3 data.


    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

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by Nico Popp on January 26th, 2023 | 20:07 CET

    Gold and war - rethink now! Barrick Gold, Globex Mining, Rheinmetall

    • Mining
    • Gold
    • Commodities
    • armaments
    • Growth

    Gold is shining again. The weaker dollar and the existing geopolitical risks are boosting the precious metal. But how should investors invest? What opportunities are there off the beaten track? And: Given the crises, does gold have to be in the portfolio? We highlight three hot stocks and provide insights and outlooks on the gold price and the overall geopolitical situation.

    Read

    Commented by Stefan Feulner on January 26th, 2023 | 20:00 CET

    Nordex, Manuka Resources, American Lithium - The profiteers of scarcity

    • Mining
    • Gold
    • Lithium
    • Commodities

    Besides the raging war in Ukraine, the discussion about the energy industry of the future accompanies us daily. It has already been decided that renewable energies such as wind power and photovoltaics will be the way forward. Likewise, the move away from the internal combustion engine to battery-powered electric motors is in the bag. But the implementation problems will be with us over the next few years. Where will producers get the raw materials that are already in short supply? Another critical issue is energy storage. Here, too, there is an increasing demand for a raw material that is currently produced primarily in Russia and China.

    Read

    Commented by André Will-Laudien on January 25th, 2023 | 14:07 CET

    Last generation upswing 2023? TUI, Lufthansa, Alerio Gold, Aurelius - opportunities upon opportunities!

    • Mining
    • Gold
    • Travel

    The year 2023 has shown its friendly side in the first weeks. Despite highs in the indices, however, there is light and shade. For example, the Association for Consumer Research (ACR) recently found in a survey that consumers in Germany are entering the new year with significantly more confidence in economic development. This means that the ACR consumer climate index has risen for the fourth time in succession. The propensity to buy things nevertheless remains at a very low level. The new purchases indicator thus fell by 2.4 points to minus 18.7 points. Uncertainty in the face of crises and inflation remains very pronounced, with many households expecting significantly higher heating bills in the coming months. Many are putting money aside for this, which is now not being used for other expenses. However, shares are being bought, and we give a few examples.

    Read