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Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


Karim Nanji, CEO, Marble Financial

Karim Nanji
CEO | Marble Financial
1200-1166 Alberni Street, V6E 3Z3 Vancouver (CAN)

info@marblefinancial.ca

+1-604-336-0185

Interview with Marble Financial: Fintech innovator plans expansion into the US


04. March 2021 | 08:56 CET

Yamana Gold, Triumph Gold, Barrick Gold: Profiting from market weakness

  • Gold
Photo credits: pixabay.com

Inflation is the hot topic again. But inflation is far from being a threat. This is probably also why the gold price is currently suffering. The reason: interest rates could rise in the long term, making bonds more attractive again compared to interest-free gold. But the past has shown that gold can often even profit from inflation when inflation rates are very high - after all, the precious metal remains the world's oldest reserve currency. The gold sector companies have tomorrow's gold in the ground with valuations far below current gold prices and that offers opportunities. We present three stocks.

time to read: 3 minutes by Nico Popp


Ryan Jackson, CEO, Newlox Gold Ventures Corp.
"[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

Full interview

 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


Yamana Gold: Price does not get going despite copper business

Yamana Gold's share price recently hit its six-month low. The parent Company of Osisko Mining also mines copper and silver in addition to gold and should therefore actually be an attractive value. While gold is seen as a substitute currency, silver is growing in importance around renewable energies and electromobility. Copper has also benefited for months from the rising demand for electric cars and the even better prospects. So why is Yamana Gold's share price falling?

The share is suffering from the current crumbling price of gold. Recently, it had torn down some support levels, which then fueled fears of a further drop in the share price. Even the quite reliable figures of Yamana, which the Company recently published, could not change this. Investors who believe that the gold price can get back on track, regardless of its chart situation, can already take advantage of opportunities at the current level with shares such as Yamana. In the past, gold has shown itself to be an "Enfant terrible" several times and subsequently proved the chart technique wrong.

Triumph Gold: This share is small but fine

The share of the gold developer Triumph Gold has already found a bottom. The Canadians are developing their Freegold mining project in the Canadian Yukon step by step. Recently, they even bought some land. Last year's exploration work all brought new discoveries of gold to light. But also copper, silver and molybdenum can be found in the drill cores. The interesting thing about the Triumph Gold stock is that the management has been undeterred for months and has the support of important anchor shareholders.

These include Newmont Mining (12.8%) and the Zijn Mining Fund (9.8%). Triumph Gold currently has about CAD 5 million in cash and can support the next exploration program. Since the project has a good infrastructure and is strategically located between properties of other companies, the stock is worth considering. Those who think long-term are looking for a favorable entry in the current market environment and will let the stock lie.

Barrick Gold: Close your eyes and go for it

Let it lie and think about something else could also be the apparent thought of Barrick Gold's shareholders. The Company is simply not putting its horsepower on the road at the moment - the share price is plummeting. Barrick Gold is among the absolute world leaders in the production of gold. The precious metal accounts for about 95% of sales, with copper making up the rest. Consequently, it is no wonder that the share is currently suffering badly from the drop in gold price. Barrick even had the idea to focus more on copper in the future to get out of its price dilemma. We remember: Even a special dividend could not keep the shareholders in line - although the Company delivered high free cash flows in 2020 and could have gone on a buying spree. But Corona threw a spanner in the Company's works.

Given the current market environment, the chances are not bad that Barrick Gold will make acquisitions of smaller companies and set the course for growth. While the market might equate an acquisition with a higher risk in the event of a gold bear market, the Company certainly has the means to take risks with smaller and mid-sized companies. The stock remains a solid investment but is not particularly attractive in the short term.

Getting a foot in the door with small caps

Whether investors choose a pure gold play, such as Barrick Gold or Triumph Gold, or go with a more diversified producer, such as Yamana, is a matter of taste. However, given the challenging market environment, one approach could be to keep position sizes small for now and put those funds into more speculative stocks instead. One candidate for this could be Triumph Gold. The Company has cash, a promising project and potent anchor shareholders. Nevertheless, the market capitalization is just about EUR 16.5 million.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

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:

15. April 2021 | 07:24 CET | by André Will-Laudien

Coinbase, Plug Power, NSJ Gold Corp. - Bitcoin, inflation, gold - triple whammy!

  • Gold

The crypto craze has erupted. Nothing is currently causing as much of a stir as cryptocurrencies, their trading platforms and all the service companies surrounding them. Never before have there been such price surges in associated assets in such a short period. There is widespread talk of the crypto world as a means to combat inflation and provide a new payment system. Let's be honest: a currency that fluctuates by more than 500% every six months is hardly suitable for mapping the payment flows of millions of transactions in the goods sector. A Bitcoin that cost EUR 10,000 in the summer of 2020 has reached prices of over EUR 50,000 today. How should one deal with this alleged "currency" - Impossible, as Bitcoin itself is probably inflationary!

Read

15. April 2021 | 07:00 CET | by Nico Popp

Barrick Gold, Desert Gold, Steinhoff: Where inflation is an opportunity

  • Gold

Inflation is back! In the USA, annual inflation has already climbed to 2.6%. Experts believe that the 3% mark will also be targeted during the course of the year. What does this mean for investors? It is becoming increasingly more important to protect one's assets! Shares can play a central role here as these traditionally perform well during inflationary phases. But beware: Inflation strikes particularly hard at growth stocks that will only make profits in the distant future.

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14. April 2021 | 12:30 CET | by André Will-Laudien

Osino Resources, Barrick Gold, Sibanye Stillwater - Gold in Turnaround!

  • Gold

The large gold producers are left lying in the current environment. What counts on the capital markets is the slight inflation, which one gladly accepts, because the economies have been suffering for years from the prescribed minus interest rate and deflationary tendencies. In other stock market cycles, demonetization phases were always good times for the precious metals; this is not yet evident at present. After the significant correction in March 2020, there were sharp rises in mining stocks until late summer 2020, but a large part of the gains will gradually melt away again in 2021. Is there still hope for the precious metals?

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