Vinci Capital Group – Striking Gold
The Vinci Capital Group is a BVI based company with subsidiaries in Asia focused on gold and copper. The Vinci Capital Group co-owns mining exploration licenses with a combined surface area of 3 times the surface area of the country of Liechtenstein.
The company has recently struck gold, with total resource deposits running in the 12 digit numbers. The Vinci Capital Group’s business model is developing early stage mining exploration licenses to prepare for mining companies to develop them once at a bankable level.
Here are some articles links about the CEO of Vinci Capital.
The Mega-Merger Of The Year
There is a new gold giant in town. The merger of Barrick Gold Corporation and Newmont Goldcorp Corporation, two of the world’s largest gold companies, has created a gold giant, Newmont Goldcorp (NYSE: NEM) , the likes of which has never been seen before.
While Newmont’s stock price for its share of the joint venture has only seen a minor bump compared to Barrick’s outstanding 41% since the merger, it is undoubtedly in a better position. Newmont’s new assets may take up to three years to reach optimal levels, meaning the positive impact of the merger is going to continue to be felt for a long time to come.
As for its current position, its 2020 Q2 earnings showed some very positive results, growing to $2.26 billion from $1.66 billion the previous year. Its production has also seen a boost, with Newmont digging up 1.5 million oz of gold in the second quarter – setting its highest quarterly haul in years.
Source: Bloomberg https://miningglobal.com/supply-chain-and-operations/striking-gold-top-mining companies-and-secret-their-success
Raking In The Royalties
Not exactly a miner, Franco-Nevada (NYSE:FNV) makes its money from gold royalties and streaming as well as holding interests in platinum group metals and other assets. And there is plenty of money to be made in this industry. It finances the mines of other companies and takes an easy share of the profits. So when gold prices are soaring, this is the place to be.
An excellent portfolio and a booming gold market has seen FNV’s portfolio soar – with its share price up 39% year to date And this year hasn’t even been particularly out of the ordinary, with the company returning investors a 526% return since 2007 without including dividends.
The company continues to add assets – taking on a 2% royalty on both Marathon Gold Corp’s Valentine Lake operation and Gold Field’s Salaries Norte operation for $18 million and $32 million respectively. For a company worth roughly $18 billion, these assets are a drop in the bucket, but it does show that the growth from this record breaking company isn’t stopping any time soon. And there’s an even bigger deal in the pipeline, with FNV entering into an agreement with Range Resources Corporation for a deal worth $300 million.
Source: Bloomberg https://www.bloomberg.com/press-releases/2019-11-19/the-6-top-gold-stories to-watch-in-2020