April 13th, 2021 | 12:29 CEST
Yamana Gold, Goldseek Resources, First Majestic: Bet on gold & silver now!
Table of contents:
"[...] As we look at four or more zones in more detail from the beginning, investors can expect a continuous news flow that will underscore our vision of the Holy Grail project as a giant opportunity. [...]" Nick Luksha, President, Prospect Ridge Resources
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Yamana Gold - Projects are going well
A mid-tier producer is Toronto-based Yamana Gold, with a high-quality, diversified portfolio of gold and silver producing properties, including some development-stage properties. All projects are located in mining-friendly jurisdictions throughout the Americas, Canada, Brazil, Chile and Argentina. Production output is expected to increase in gold from about 780,000 ounces to just under 900,000 ounces. While in silver, the Group expects a decline of about 10% from 10.4 million ounces in 2020.
Yamana plans to achieve additional consistent growth in volumes produced based on sustained expansion and optimization initiatives at its existing mines by developing new mines, advancing its exploration properties and exploring acquisition opportunities focused in North and South America.
Yamana Gold Inc recently reassessed its two major projects and provided a technical update on Canada and Chile. In Canada, Yamana owns the Malartic mine in Quebec, while in Chile, it operates the El Penon mine in the Antofagasta region. The reports now enable management to announce a 10-year strategic production forecast for the Company. Since its last technical update three years ago, El Penon has gone from strength to strength, with mineral reserves at the facility increasing 21% to 921,000 ounces of gold since the end of 2017. Silver resources increased by almost a quarter to 29.2 million ounces over the said period. Malartic is also doing well, having produced four million ounces of gold since 2014. Yaman's shares are stable in the market and, at a price of EUR 3.8, are about 33% below their 2020 high.
Goldseek Resources - Not far from larger producers
Far away from large production volumes, the Canadian Goldseek Resources lies in wait. It has acquired its properties in the vicinity of major producers and will take advantage of opportunities depending on the metals' price development. In doing so, the Company uses the majors' preliminary work and invests in nearby claims with excellent framework factors.
In order to arrive at a valuation of the ores in the ground, exploration will be initiated in due course, with the management keeping a strict eye on costs. More than 80% of the funds are to flow into the resource development, with only a scant 20% remaining for administration. If a good drilling result is achieved, the Company can approach the producers directly and conclude purchase agreements.
Currently, Goldseek Resources owns five promising projects, four of them in the gold stronghold Quebec and one property in Ontario. Names like Hemlo Gold or Barrick Gold are well-sounding neighbors. One of the claims is also close to Wallbridge Mining in the Detour Gold Trend.
The stock, which was recently listed in Frankfurt, is trading at about CAD 0.24 in Canada. Jon Deluce, President and Chief Executive Officer of Goldseek, recently stated that the current consolidation of the gold price is in its final phase. We also believe in this scenario. European investors still have the opportunity to be in early, as the capitalization is still below CAD 10 million.
First Majestic - Share price at a standstill
Despite good full-year numbers and a promising resource update, First Majestic shares are stuck. At the beginning of the year, Robin Hood investors had briefly pushed the share price above EUR 21, but now the share is bobbing along between EUR 14 and EUR 15 as sales continue to fall.
The fundamental figures of the Group are excellent. After all, the balance sheet total of over CAD 1.3 billion carries 67% equity with a debt of CAD 450 million. Earnings per share have also returned to positive territory in 2020; what is missing now is an improving silver price. Unfortunately, this has also suffered from the constant selling pressure on gold. It has been bobbing for some time between USD 23.5 and USD 25.5 but is currently at a weak USD 24.8.
Evidently, the crypto world is now also playing a role. Because rising prices in Bitcoin & Co often lead to price discounts in gold and silver. We will continue to keep the First Majestic share in focus and stand at the ready when the precious metals turn around.
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.
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.