October 21st, 2022 | 11:03 CEST
100% chance with ThyssenKrupp, Varta, Tocvan Ventures and Nel ASA: Lay the foundation for the future now!
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"[...] 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often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production.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.
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Varta - Battery technology at sell-out prices
The battery specialist from Ellwangen has not brought its investors any joy so far in 2022. After three sales and profit warnings, the management had most recently removed any guidance from the market because no reliable statements can be made in the current environment. This is understandable, as the high raw material and energy prices have completely shaken up the calculations for production and sales. Positive margins can no longer be achieved today with the sales prices negotiated 12 months ago. Prices will have to rise substantially, but this cannot be done overnight.
With an understanding of the operational situation, it is nevertheless not a good sign when insiders still tend to sell in difficult times instead of sending out positive signals to the less informed shareholders. In late summer, the Chairman of the Supervisory Board, Prof. Dr Michael Tojner, sold shares worth millions. He has now been followed by another Supervisory Board with portfolio reductions at average prices of EUR 28.45, as seen from the latest AdHoc announcement. Even if supervisory board members have to pay their taxes, timing has a high external impact, especially in difficult corporate phases. After all, the annual low of EUR 27.26 on October 13, 2022, can be explained by this.
The recovery movement of the last few days could at least lift the price back above EUR 32. Whether the current momentum is suitable for higher levels will be shown at the latest on November 15, when Varta reports on the third quarter. The Varta share certainly has huge potential due to its future technologies in the battery market, but it trades at 2022/23 P/E ratios of over 20 and is currently only growing at a below-average rate. The task now is to overcome the crisis!
Tocvan Ventures - The next steps in Mexico
Due to high inflationary pressures, diversification into gold and silver currently makes sense. But with spot prices distorted by liquidity woes, investors should also consider dormant precious metal reserves in the ground. At Canadian explorer Tocvan Ventures, things are moving in the right direction. With two substantial gold projects in Sonora, Mexico, the budding resource company from Canada reported good drill results from their first 1,382-meter program in late summer. Mineralization grades at the Pilar project ranged from 0.4 to 12 grams per tonne, and work is now being extended to the second El Picacho property.
Preparations for the first drill program at the El Picacho gold-silver project in Sonora have been underway since October. After a longer-than-expected rainy season due to poor weather conditions in the region, they are now starting the operating season. Drilling is expected to continue until June 2023 as the Company evaluates the potential of several target areas at Picacho and continues exploring its Pilar project. All target areas have historical workings with high-grade gold-silver mineralization, but nearby lower-grade zones are also of interest.
"We are very excited to be back in Sonora as we prepare for our first drill program at El Picacho and evaluate and prepare for the next steps at Pilar," said CEO Brodie Sutherland on the sidelines of a tour of the two gold projects with investors and industry experts. Great interest in the projects was also shown at the Core Shack trade shows and the annual Discoveries Conference in Hermosillo. At a current price of CAD 0.57 per Tocvan share, the market valuation of the properties is a low CAD 21.3 million. The leverage on a rising gold price is enormous because the metal can be extracted cost-effectively in Sonora using the open pit method.
Nel ASA and ThyssenKrupp - Hydrogen is becoming a real alternative
For years, engineers worldwide have been researching resource-saving alternatives in energy production. One approach could be to use green electricity to produce hydrogen. The significant advantage: H2 is particularly reactive and has a high energy density; moreover, it burns without producing harmful climate-damaging substances. That makes it possible to optimize storage processes and develop new environmentally friendly propulsion forms. The current research areas are stationary energy generation and the development of H2 drives for vehicles in continuous use, such as in the transport and logistics sector.
ThyssenKrupp AG is already making good progress in the US with its H2 subsidiary Nucera. Here they are supplying engineering services for the alkaline production of hydrogen to various Air Products sites for the mobility market in California. Unfortunately, the Duisburg-based company had to postpone the planned IPO of Nucera indefinitely. The Company could have used the many millions from the IPO for further H2 projects.
Nel ASA yesterday reported its figures for the past third quarter. With a drop in sales from NOK 229 million to NOK 183 million, the Norwegians were clearly below analysts' estimates of an average of NOK 236 million. The EBIT loss of NOK 260 million was even higher than sales, but this is not tragic for a growth company. After all, the Company still has a cash balance of NOK 3.5 billion and generated an order intake of NOK 775 million, which now needs to be transformed into cash. The share price fell again by 5% at the start of the trading day, but the EUR 1.00 mark was valiantly defended. In the evening, the stock left the market unchanged at EUR 1.11. ThyssenKrupp shares fared better, jumping 20% from their last low to over EUR 5. Due to the dynamic development in the hydrogen sector, both stocks are suitable long-term investments with growth potential.
Alongside e-mobility, the energy transition is the key driver for innovations in the GreenTech sector. ThyssenKrupp and Nel ASA have received many orders, and Varta is working on a super battery. The gold explorer Tocvan Ventures is making step-by-step progress in Mexico and should soon be delivering properly.
Conflict of interest
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