The autumn will be exciting

Slightly higher interest rates, but still negative real yields and inflation rates of around eight percent should make for an interesting fall. After all, rising interest rates and simultaneously rising commodity and gold prices have already occurred in the past and were even more the rule. If inflation rises, then interest rates usually rise, and gold and commodities benefit because interest rates tend to lag behind inflation. In addition to the gold price, mining companies in particular have the best chances of significantly higher prices. Because today, for example, the profit margin is far above that of the year 2000. Production costs and gold price are much far apart today. Gold companies are therefore now cheap to have, because the valuation of mining companies has not kept pace with this development. These facts cause commodity expert Tobias Tretter (founder and CEO of Commodity Capital), for example, to speak of a current tripling potential for gold mining companies.

According to the commodities expert, the management of a company is particularly important, as are ESG (environmental, social and governance) aspects, which have increased in importance. If ESG guidelines have a high priority, then mines benefit from more profitability in the medium to long term. A project can be as good as it is, but if the management does not have experience and foresight, success can still fail to materialize, hence a look at Caledonia Mining and OceanaGold, two successful producers.

Caledonia Mining – https://www.youtube.com/watch?v=Eh0stFKsYwk – is on track to meet its 2022 production target of 73,000 to 80,000 ounces of gold, this at the Blanket mine in Zimbabwe. Quarterly, the company pays dividends.

OceanaGold – https://www.youtube.com/watch?v=TNc9Z3i4NVY – owns projects in the Philippines, New Zealand and a gold mine in the USA, among others. Special emphasis is placed on ecological and social performance.

Current corporate information and press releases from Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -) and OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-corp/ -).

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.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/