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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:


    Jared Scharf, CEO, Desert Gold Ventures Inc.
    "[...] Our SMSZ project is the largest contiguous land package of any exploration company in the region at 400km2 and overlays a 38km portion of the prolific Senegal Mali Shear Zone. [...]" Jared Scharf, CEO, Desert Gold Ventures Inc.

    Full interview

     

    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.

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    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



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