July 12th, 2022 | 14:09 CEST
Waiting is not an option! BioNTech, MAS Gold, BASF
Table of contents:
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
BioNTech: Well prepared for the fall
Whether BioNTech can emerge as the winner of the Corona situation is not yet certain. Since BioNTech has two hot candidates for the upcoming Corona season, the Company is well-positioned. Actually. Experts from the US Food and Drug Administration (FDA), among others, are currently discussing which vaccines should be launched on the market in the fall. The manufacturers offer solutions specifically directed against Omicron or products intended to be effective against both the original type and Omicron. Doses of the first batches of the vaccines are also still in stock. Given the number of possible solutions, experts warn that the logistics surrounding the vaccines could become more complex, and BioNTech's margins could suffer.
Nevertheless, the chances are good that the vaccine professionals from Mainz will be able to offer exactly what experts are demanding and vaccinators are accepting in the fall. Since the pandemic has shown that a lot can happen and little can be planned, BioNTech could be well-positioned. The stock also looks attractive from a chart perspective. The share is currently fighting its way out of the sideways movement that has lasted since February. However, it remains to be seen whether the breakout will be successful - BioNTech is now an established stock, making big jumps less likely.
MAS Gold: Is history repeating itself?
MAS Gold is the opposite of an established value - at least in Europe. The Company is exploring the La Ronge gold belt in Canada's Saskatchewan province. MAS Gold has several promising smaller properties and is developing them in parallel. The plan is to implement a hub-and-spoke model, where a central processing plant reduces costs and creates flexibility. But for these goals to be achieved, the gold in the ground is critical. A few weeks ago, MAS Gold announced drill results from one-third of its winter drill program. Grades ranging from 0.49 g/t to 3.06 g/t came to light. The task of the Company, led by mining legend Jim Engdahl, will now be to further delineate the deposits and get a picture of the high-grade zones.
MAS Gold's own belief in moving its projects forward is also evidenced by a financing round involving management and company insiders. With the overall market weakening, especially on the financing side, the stock has come under significant pressure despite the recent successful closing of the capital tranche. This "cliffhanger" can be an opportunity for courageous investors: If MAS Gold successfully implements its strategy and the gold market picks up speed in the wake of general uncertainty, current price levels could be promising. The development of inflation and gold during the 1970s could provide guidance. At that time, gold also only got going with a time lag!
BASF: More fear than hope
And what about industrial companies? During past crises, investors could always be sure: In the long term, stocks like BASF always get back on track. And today? Today, energy-intensive industries such as chemicals are threatened with collapse. BASF is painstakingly giving itself a sustainable profile, but tens of thousands of precursors from the Ludwigshafen plant still depend on fossil fuels. If contrary to plans, no more gas flows through Nord Stream 1 in two weeks, shares like BASF will likely come under renewed pressure. The Ludwigshafen shares have already fallen by around 16% in the last three months.
Inflationary pressure and crisis fears are a dangerous mix. One thing is certain: those investors who do nothing will have to accept a loss of purchasing power in any case, and those who invest incorrectly, likewise. One approach could be to focus on companies that suffer little from the energy price shock and may even have a low valuation. One such candidate, albeit a highly speculative one, is MAS Gold. BioNTech also looks interesting at the moment.
Conflict of interest
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