Close menu




January 21st, 2022 | 10:45 CET

Yamana Gold, MAS Gold, Newmont - Entry opportunities!

  • Gold
Photo credits: pixabay.com

In recent months, gold stocks consolidated. The shares of the second-largest producer, Barrick Gold, were recently boosted by good quarterly data. From a historical perspective, the current price level of the precious metal can be considered high. The general conditions for rising prices are also good in the medium term. Now the sentiment for precious metal stocks could turn more positive again. These companies will certainly benefit from the next gold price rally.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: YAMANA GOLD INC. | CA98462Y1007 , MAS Gold Corp. | CA57457A1057 , NEWMONT CORP. DL 1_60 | US6516391066

Table of contents:


    Yamana Gold - Strong production figures

    Yamana's stock has been puzzling analysts for some time. Last Friday, the Canadian precious metals producer announced preliminary production figures for the final quarter and the full year. The Company was able to come up with a very good performance. With 1.01 million ounces, the gold equivalent produced for the full year was 1% above the planned figure of 1.0 million ounces and 12% higher than in the previous year. All production sites were able to report production records in the last quarter.

    The important All-In Sustaining Costs (AISC) indicator also developed positively. At USD 970 per ounce of gold equivalent, costs were around 8% lower than the previous three quarters. And how is the stock market reacting? At first, not at all. It was not until the good Barrick figures that the stock rose by 8%. Analysts rate the shares as a "buy" with a price potential of more than 50%.

    MAS Gold - "Winter Drilling Program" in dry clothes

    Another company from Canada engaged in the search for gold is MAS Gold. More specifically, the Company is active in the historic La Ronge Gold Belt mining district in the province of Saskatchewan. Here, the team around CEO and mining veteran Jim Engdahl has four properties covering an area of around 34,000 hectares. In this region, which is well developed in terms of infrastructure and has very mining-friendly legislation, lies, among other things, the former Contact Lake gold mine, which was operated by Cameco until 1998 and whose rights MAS Gold was able to secure in 2021. At a gold price per ounce of around USD 280, the mine could no longer be operated economically.

    However, now that the gold price has risen by more than six times, a renewed production start-up appears attractive again. Furthermore, the Company owns Preview North, Greywacke Lake, Elizabeth Lake and Henry Lake. Preview North alone is believed to hold resources of around 494,000 ounces, while Greywacke is estimated to host 156,000 ounces. In total, the Company anticipates gold deposits of more than 1 million ounces.

    To fund exploration, MAS Gold has reached an agreement with Eros Resources. In exchange for six months of exploration funding in the amount of CAD 3.5 million, Eros Resources will receive the exclusive right to earn a 17.5% interest in all of MAS' properties. MAS Gold is thus well positioned to further expand its resources in the current year. The stock market valuation of the Canadians is currently just under CAD 15 million.

    Newmont - Is the No. 1 fighting its way back to an all-time high?

    The stock exchanges are following the price of Newmont shares more or less intently. Like a squirrel, the share has laboriously worked its way back up after the bear market in the fall. With the breakout above the 200-day line, the Company is slowly but surely heading back to its all-time high around USD 75. The mining group's fundamentals are good, the dividend is high, and the latest guidance published by the Company is very optimistic. In addition, demand for gold seems to be picking up slightly. They have recently seen a sharp increase in gold and silver imports in India, which is considered a very gold-friendly country. As a result, the chances increase that the correction in precious metal prices is slowly ending. Analysts also see the stock as a long-term buy, even if the median price target is currently not too different from the current stock market price. At the peak, the experts believe that the share of the world's largest gold producer is worth USD 75, a potential of around 15%.


    Gold is and remains a fascinating and instrumental precious metal. In addition to its use as jewelry, it is also irreplaceable for many areas of technology. That has always made gold a popular investment for economically challenging times. Rising gold prices and higher production volumes are pushing up the prices of mining companies. Those who want to profit from this are seizing the opportunity. Either with established giants such as Newmont or Yamana, or with explorers who compensate the higher risk with handsome return opportunities. MAS Gold is a good choice here.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by André Will-Laudien on May 25th, 2023 | 07:10 CEST

    Is national bankruptcy looming, or is the US debt ceiling a cinch? Deutsche Bank, Tocvan Ventures, PayPal - Financial system under tension!

    • Mining
    • Gold
    • Silver
    • Banking
    • Software

    Once again, the so-called "debt ceiling" in the US has been reached. Consequently, reports about the US financial system are filling the global headlines, with insolvency being painted on the wall. Meanwhile, it is common knowledge that the US has been printing money for a good three decades because its budget is chronically in deficit. Unfortunately, however, the House of Representatives and the Senate have approved raising the debt ceiling conditional on a number of demands that cannot be easily met. The financial markets are visibly trembling. However, seasoned participants know that this debt limit has been raised 78 times since 1960, so why should it fail on the 79th occasion? Is it all just a show? We take a closer look.

    Read

    Commented by Fabian Lorenz on May 24th, 2023 | 08:10 CEST

    IPO Price driver: ThyssenKrupp, Volkswagen, Desert Gold

    • Mining
    • Gold
    • Electromobility
    • IPO

    In an IPO, it is not only the newcomer to the stock market that is interesting for investors. A parent company often benefits - e.g. Volkswagen or Mercedes-Benz - when the subsidiary becomes fully or partially independent. Shareholders of ThyssenKrupp are currently hoping for a share price driver. Thus, the IPO of the hydrogen subsidiary nucera. However, analysts are skeptical. Yet, an initial public offering can also pay off for the peer group when investors take a closer look at the industry again. Desert Gold could benefit from this. The neighbour of the gold explorer Allied Gold Corp wants to go public in London. Desert Gold should also benefit from this and help the share to break out. Within the VW Group, the Porsche share has outperformed its parent company since the IPO. Analysts warn: Will Tesla and BYD leave Volkswagen behind?

    Read

    Commented by Nico Popp on May 24th, 2023 | 07:55 CEST

    Penny stocks without risk? Nikola Corporation, Steinhoff, Orestone Mining

    • Mining
    • Gold
    • Silver
    • Electromobility
    • Pennystocks

    They have always held great appeal for investors: Penny stocks. Whenever shares are trading below one euro, gamblers pounce on them. But why is that? And are all penny stocks speculative? We explain the phenomenon of penny stocks using three stocks as examples. This much can already be revealed: They range from speculative to promising. Nevertheless, investors should keep their hands off one share.

    Read