What golden numbers!
The price of gold, which has risen in recent months, is now also eating its way through the balance sheets of gold companies. The already producing companies earn more splendidly than ever. And the companies with good gold projects, which have yet to be brought to production maturity, can collect the necessary money for this. Because, driven by the panic-stricken central banks, interest rates will remain low for a long time to come. That always gives new impulses to the gold price.
Sensational: The gold companies are therefore currently outdoing each other in publishing their figures for the first six months of 2020, with Sibanye-Stillwater, for example, reporting earnings before interest, taxes, depreciation and amortization (EBITDA) of Rand 16.5 billion. This is a hefty 718 percent more than in the first half of 2019, enabling the gold and platinum metals group to significantly reduce its mountain of debt and even resume dividend payments. The Sibanye share should reward this in the long term. Because this should make it clear to investors that the South Africans not only have a very competent management team around CEO Neal Froneman, but that the gold and platinum projects in southern Africa and the USA are also outstanding.
Project developers and exploration companies have it harder than the producers who benefit directly from the higher gold price. They usually have to ask the shareholders or financiers for money in order to be successful in mining. But they also profit from the gold price - indirectly. Because the gold deposits in the ground are revalued accordingly. The GoldMining group, for example, has advantages here. Because GoldMining already owns several projects from Brazil to Canada and has already - unusually for a smaller growth company - collected the huge amount of more than 25 million ounces of gold resources. Therefore, more and more broker analysts are becoming aware of the GoldMining share. The Canadian broker Haywood recently announced a price target of 4.25 Canadian dollars.
Current company information and press releases from Sibanye-Stillwater (https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/) and GoldMining (https://www.resource-capital.ch/en/companies/goldmining-inc/).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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