Menu

Recent Interviews

Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


13. September 2021 | 13:43 CET

Xiaomi, Troilus Gold, Merck - First-class developments

  • Gold
Photo credits: pixabay.com

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 by Stefan Feulner
ISIN: XIAOMI CORP. CL.B | KYG9830T1067 , TROILUS GOLD CORP. NEW | CA8968871068 , MERCK KGAA O.N. | DE0006599905


Justin Reid, President and CEO, Troilus Gold Corp.
"[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

Full interview

 

Author

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


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.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

26. November 2021 | 14:06 CET | by Carsten Mainitz

MAS Gold, K+S, Klöckner & Co. - For fans of real assets!

  • Gold

Inflation has certainly not yet reached its peak. The scenario of only a short phase of major losses in purchasing power - according to the position of the central banks - must be doubted anyway. Therefore, forward-looking investors should invest in tangible assets such as stocks, bonds or commodities. Anyone thinking of building up or expanding a commodities portfolio should take a closer look at the following stocks. Who is winning the race?

Read

24. November 2021 | 13:05 CET | by Armin Schulz

Gazprom, Tembo Gold, Nvidia - Inflation and rare goods

  • Gold

Inflation has jumped not only in the USA but also in Germany. With an inflation rate of 4.5% in October, we now have the highest value in Germany in almost three decades. One driver of monetary devaluation is the cost of energy, which has become significantly more expensive, especially in the past year. While the oil price was still in negative territory at the beginning of the pandemic, it was recently quoted above USD 80. The chip shortage can be observed in the automotive industry, but graphics cards are also rare and are traded at a significant premium to the recommended retail price. Graphics cards are used for mining cryptocurrencies. It seems that bitcoin is increasingly becoming a value protection asset and competes with gold, the number one inflation protection.

Read

22. November 2021 | 12:50 CET | by Nico Popp

Amazon, Desert Gold, Deutsche Telekom: First movers are rewarded

  • Gold

Is it Christmas again? History is currently repeating itself: incidences are rising, Austria is going into lockdown, and German investors are gearing up for a form of contemplation that no one had expected after the vaccination successes in the summer. But life with a home office and delivery services also has advantages for passionate investors: There is plenty of time to take care of one's finances. Investors can profit since the market does not yet attach much importance to the dangers of inflation and the major central banks' ignorance of inflation. We present three stocks for long home office days.

Read