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.


23. April 2021 | 09:50 CET

Yamana Gold, Scottie Resources, Newmont Corporation - Is bitcoin weakness, inflation hikes and lower US yields sending prices flying?

  • Gold
Photo credits: pixabay.com

With bitcoin plunging - yet again - last week, losing about 13%, and US inflation climbing to its highest level since March 2018, investors' eyes should increasingly turn to precious metals. In addition, lower US yields are making interest rates foregone more attractive again for gold holders. The gold price is bravely holding just below its 100-day line. Time for us to take a closer look at a few promising gold stocks. Who has the best performance chances?

time to read: 4 minutes by Carsten Mainitz
ISIN: CA98462Y1007 , CA81012R1064 , US6516391066


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

Author

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


Yamana Gold - Investment in Ascot Resources goes down well with investors

When mid-tier producer Yamana Gold announced a week ago that it would invest roughly CAD 20 million in Ascot Resources as part of a private placement, it was not clear how this investment by the Toronto, Canada-based Company would go over with investors. The friendly acquisition of Monarch Gold in early 2021 helped the Company report strong double-digit reserve growth and thus halted the stock's slide. How much the investment in Ascot, an exploration Company operating in the British Columbia Golden Triangle, would add to the rest of its diversified portfolio was anyone's guess.

Now, one week later, we can say: quite ok. Since the announcement of the investment, the share price has risen by around 3%. Thus, the expansion strategy issued by Yamana through acquisitions in North and South America seems to continue to be successful, in addition to further expansion and optimization initiatives in existing projects. The path shown by the revaluation of its two major projects and the published 10-year strategic production forecast also seems plausible to us, even if an overall view is somewhat complicated due to the high degree of diversification.

After all, Yamana's projects have among the highest reserves compared to those of its competitors. It does not take into account the 56.25% stake in the MARA project in Argentina, for which no update on reserves has yet been reported. Currently, the stock is still about 30% below its all-time high from August 2020. If you are looking for a solid gold stock and want to benefit from the developments in the gold market, you might want to take a closer look at Yamana's stock.

Scottie Resources - Acquisition of AUX Resources creates good mood

Scottie Resources, a direct neighbor of Ascot Resources, operates exclusively in the British Columbia Golden Triangle. Also operating in this area is AUX Resources, whose complete takeover by Scottie Resources was announced on April 12. The transaction involves a one-for-one share swap, and upon completion, which is scheduled for June 2021, the former AUX shareholders will hold a roughly 31% stake in Scottie Resources. Shareholders of both companies should benefit significantly from the merger. Successful exploration of Scottie's two main projects, Scottie Gold Mine and Cambria, would pay off for AUX Resource shareholders; conversely, the success of AUX's flagship Georgia Gold Mine project would also be profitable for Scottie shareholders.

The Scottie Gold Mine project, which includes the Scottie Gold Mine (total production: about 95,000 ounces at a gold grade of about 16.2 g/t) already in production from 1981 to 1985, is located just 27 km south of the Brucejack Mine operated by Pretium Resources, which entered commercial production in 2017. About 1 million ounces have been produced there to date, and reserves are estimated at around 4.2 million ounces. About 20 km away is the Premier Gold Mine project operated by Ascot Resources, whose reserves are estimated at around 20 million ounces of gold equivalent (indicated + inferred). Ascot has only recently succeeded in raising CAD 55 million in fresh capital, partly through the entry of Yamana Gold. For the time being, the debt-free Scottie Resources, which has about CAD 6 million in cash after the merger, will not need this.

Scottie's other projects, such as the 15,000-hectare Cambria project, and the Georgia project contributed by AUX, have also delivered promising results so far, which will be verified by a massive expansion of exploration drilling from 7,000 meters to 12,500 meters. The chances of this happening are very good. The British Columbia Golden Triangle is considered one of the best mining regions in the world. The world's largest gold producer, Newmont Corporation, acquired GT Gold Corp. last month for CAD 461 million. We are a fan of Scottie, as are the shareholders, who have seen the stock price skyrocket about 27% since the acquisition was announced.

Newmont Corporation - Will the latest quarterly figures bring the upswing?

Shareholders of the world's number one gold producer are eagerly awaiting April 29. On this day, the Denver, Colorado-based Company will announce its figures for the first quarter of 2021. Despite the recent slight drop in gold prices, analysts expect the results to be in line with expectations. The planned quarterly dividend of USD 0.25/share is also calculated at a price of USD 1,200/ounce, so this is unlikely to change.

A USD 300 increase in the gold price would translate into an additional quarterly dividend of USD 0.15 to USD 0.225 per share. In general, the Company plans to distribute 40-60% of the additional cash flow generated (currently about USD 400 million per additional USD 100/ounce gold price) to shareholders. The other highlights expected to comprise this quarter's reporting are the March acquisition of GT Gold in the British Columbia Golden Triangle, the full repayment of the 2021 Notes, and the tying of its revolving credit facilities to several sustainability issues.

The latter is intended to demonstrate Newmont's commitment to environmental, social, and governance issues and translate into a higher ESG rating. For us, this makes Newmont a safe bank for the portfolio. With a current share price of just under USD 67, the Company's fundamentals also make it an absolute value stock. The Company, whose production capacities of currently just under 8 million ounces of gold per year are fully utilized until 2032, will benefit strongly from a rising gold price, especially as the expected dividend yield of just over 3% is still based on the current gold price.


Author

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



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