Close menu

September 13th, 2021 | 13:43 CEST

Xiaomi, Troilus Gold, Merck - First-class developments

  • Gold
Photo credits:

Substantial gains were recently seen in consumer and producer prices in Germany and Europe. Inflation in Germany reached its highest level in almost 28 years in August and is close to breaking through the 4% mark. In contrast to central banks, which consider the rate of inflation to be temporary and continue to maintain an ultra-loose monetary policy with interest rates at zero percent, economists expect inflation to remain permanently high. There is a threat of a decline in the value of money, which could be slowed down by buying gold. Currently, the precious metal is still trading at a favorable level.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: XIAOMI CORP. CL.B | KYG9830T1067 , TROILUS GOLD CORP. NEW | CA8968871068 , MERCK KGAA O.N. | DE0006599905

Table of contents:

    The precious metal in demand

    According to a World Gold Council report, the demand for physical gold in the first half of the current year has increased by 35% compared to the same period last year. In Germany alone, 90t of gold bars and coins went over the counter, more than at any time in more than a decade. Looking at the gold price, one still sees little of the strong interest in the yellow metal. After an interim high at the beginning of September at USD 1,831 per ounce, there was no further momentum to attack the next price target at USD 1,910. In recent days, the gold price fell below the area at USD 1,800, a test of the annual lows below USD 1,700 is not ruled out, but then it is more than attractive long-term buying prices. In the course of the decline in the strike price, mining stocks corrected disproportionately significantly. Again, if investors want to hedge against currency devaluation in the long term, they should position themselves anti-cyclically in gold mine producers and exploration companies.

    Flagship project in North America

    Led by an experienced team, Troilus Gold is in the process of morphing into a world-class Canadian gold and copper production operation. Developments in recent months show enormous potential, but the share price currently does not reflect this in any way. After reaching a high of CAD 1.30 in mid-May, the share, more than 60% of which is in institutional hands, is trading at CAD 0.83. The market capitalization is around CAD 160 million, and due to a successful capital increase, Troilus Gold has a strong cash position of CAD 48.6 million. Due to the quality of the project, analysts at Cormark Securities see a target price of CAD 4.50, which is more than a five-fold increase in the share price.

    The project in question is located in the leading mining district of the Canadian province of Quebec, where the Company owns strategic properties covering an area of 1,420 sq km. The mine produced 2 million ounces of gold and around 70,000t of copper between 1996 and 2010 before it was shut down for cost reasons. In 2017, drilling resumed at the Troilus mine. Since then, aggressive drilling programs have covered 250,000 meters of drilling, and the resource estimate has increased to 8.1 million ounces.

    An economic feasibility study last year certified the project as highly profitable. According to the appraisal, the project value is USD 1.156 billion at a gold price of USD 1,950, allowing for a very rapid payback of the required USD 333 million investment. Plans call for the mine to operate for 22 years and produce an average of 246,000 ounces of gold annually for the first 14 years.

    Troilus Gold aims to become a gold producer by 2023 at the latest. The Canadian exploration company received support from the government of Québec and the pension fund 'Fonds de Solidarité', which stepped in with CAD 11.15 million on equal terms with which the Company collected CAD 45 million in a bought deal transaction. The funds will be used, among other things, to prepare a feasibility study by early 2022 for the Troilus Gold Project. The Company is more than exciting and should benefit disproportionately from the long-term rising gold price.

    Xiaomi continues to expand

    Currently, financial giants such as George Soros recently warned against investing in Chinese companies, saying that the efforts of Chinese regulators are not yet over and a rude awakening could follow. Indeed, stocks such as Alibaba or Tencent are currently not showing any signals to justify an investment. In contrast, the technology group Xiaomi shows relative strength and can shine fundamentally despite the regulatory mania in the Middle Kingdom.

    After the Company was even able to replace Apple as number 2 in smartphone sales in the current year, the management plans to enter the electric car market from 2024 with the first model. A new model is to be launched every year to expand the product range. According to the Chinese magazine 36Kr, Xiaomi aims to deliver 900,000 units in the first three years. In Germany, the stock is currently trading at EUR 2.60 on a broad support zone. At the current level, long-term entry offers itself.

    Like clockwork

    The chart of Darmstadt-based Merck KGaA has been pointing in only one direction for months. The pharmaceutical and chemical group, represented in the Healthcare, Life Science and Electronics segments, was further upgraded by analysts at the US bank JP Morgan following the Company's own Capital Markets Day. The experts increased the price target from EUR 220 to EUR 230 and maintained their "Overweight" rating.

    Fears of sustained high inflation remain. To hedge, gold mining stocks such as Troilus Gold offer protection against a possible devaluation of money as a portfolio addition. Outside the precious metals market, the Xiaomi share shows an attractive entry opportunity at the current level.

    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 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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by Stefan Feulner on June 2nd, 2023 | 08:00 CEST

    ThyssenKrupp, Orestone Mining, Nevada Copper - Optimistic about the future

    • Mining
    • Copper
    • Gold
    • Silver

    Overall, copper is an indispensable part of the green transformation due to its excellent electrical conductivity, corrosion resistance and reliability. It enables the efficient use of renewable energies, promotes electromobility and supports sustainable infrastructure development. Due to recession fears, the base price corrected strongly in recent months. In the long term, copper should make a renewed attempt to reach new highs due to high demand and too little supply.


    Commented by Nico Popp on June 1st, 2023 | 07:30 CEST

    The breaking point for the dollar - All new for gold? Barrick Gold, PayPal, Tocvan Ventures

    • Mining
    • Gold

    'Dr. Doom' Nouriel Roubini not only predicted the world financial crisis. The Stern School of Business economist in New York also heralded the Corona Shock. Now Roubini predicts the end of the dollar's supremacy. Here is what that could mean and which companies might even have opportunities as a result.


    Commented by Armin Schulz on May 30th, 2023 | 10:00 CEST

    Barrick Gold, Desert Gold, Deutsche Bank - What happens after the US debt ceiling is lifted?

    • Mining
    • Gold
    • Copper
    • Banking
    • Investments

    In the US, the Democrats and Republicans have agreed on a compromise in the debt dispute. This means that the US can take out more loans, which will ultimately result in an increasing money supply. This could further fuel inflation, while on the other hand, it could boost the gold price. In recent months, the gold price has soared due to the turbulence in the banking sector and was able to mark a new high. Nevertheless, this is remarkable because the FED had raised interest rates significantly, which would typically have tended to argue for a falling gold price. If interest rates do not rise further or even fall, this would be another positive signal for gold. We, therefore, look at 2 gold companies and analyze Deutsche Bank.