Close menu

September 1st, 2022 | 15:13 CEST

ThyssenKrupp, Manuka Resources, K+S - Analysts are optimistic

  • Mining
  • Gold
  • Silver
  • Inflation
  • Investments
Photo credits:

High energy prices and significant increases in inflation and interest rates are causing headaches for investors. However, the stock market is punishing a number of shares too heavily. Despite the challenging environment, analysts identify several attractive entry opportunities. Stock markets always assess the future; the temporarily distorted perception of opportunities and risks opens up many investment opportunities for forward-looking investors.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: THYSSENKRUPP AG O.N. | DE0007500001 , Manuka Resources Limited | AU0000090292 , K+S AG NA O.N. | DE000KSAG888

Table of contents:

    Justin Reid, President and CEO, Troilus Gold Corp.
    "[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

    Full interview


    ThyssenKrupp - Analysts give the thumbs up

    Although business is good at the German Group, as reflected in the latest quarterly data, the sword of Damocles of high energy prices hangs over the share price. According to the German Steel Association president, Hans Jürgen Kerkhoff, the steel industry is facing additional costs of EUR 500 million a year due to the gas levy.

    On the other hand, steel producers are currently in a position to increase prices for flat steel in Europe. Weighing up the overall picture, the analysts at Jefferies arrived at a positive vote and recently confirmed their buy recommendation with a target price of EUR 13.80.

    Germany's second-largest steel producer Salzgitter recently reported a record half-year but also prepared investors for a weaker second half. ThyssenKrupp recently presented respectable quarterly figures given the challenging market environment and confirmed its guidance for the current fiscal year. The Group increased its order intake from April to June by 13% to EUR 10 billion. Sales increased by 26% to EUR 11 billion. Adjusted operating profit (EBIT) almost tripled to EUR 721 million. The good performance was based on efficiency improvements, higher revenues and improved margins at Materials Services and Steel Europe.

    Manuka Resources - Potential still ignored

    The gold and silver producer with corporate headquarters in the Cobar Basin in New South Wales, Australia, owns two producing mines with exploration zones totaling 1,150 sq km located in the Cobar Basin. Back in 2016, the Company acquired the Wonawinta project. The property has a resource of 52 million ounces of silver and 236,000t of lead. By October 2022, Manuka Resources plans to update the resource estimate. The Cobar Basin is rich in commodities, with several producers and explorers located there.

    As a second asset, the high-grade Mt Bobby gold project has been in the portfolio since 2019. The open pit mine produced 500,000 ounces of gold in the past, recovering about 15g of gold per ton. Currently, the Company is working on expanding the deposit at depth to extend the mine life.

    A few weeks ago, the Australians made an exciting acquisition. By acquiring Trans Tasman Resources Limited, Manuka now owns the South Taranaki Bight, a Tier 1 resource hosting 3.8 billion tons of iron sands, vanadium and titanium. It is planned to start production in 2025. The Company then expects annual profits of about USD 375 million.

    The recently reported extension of a credit facility is also positive. Australia's largest silver producer is moderately valued, with a market capitalization of AUD 44 million. Rising precious metal prices have a strong positive impact. However, the market still fails to recognize the value enhancement potential of the recent acquisition.

    K+S - Annual targets confirmed

    Despite the gas crisis, the Kassel-based company recently confirmed its targets for the current financial year. A continuing high price level for fertilizer prices gives the producer confidence. "We confirm our previous Ebitda forecast for fiscal 2022, even if there are bottlenecks in the availability of natural gas and a gas levy in the fourth quarter, as assumed in our scenario," group CEO Burkhard Loh said recently.

    In 2022, the Company is expected to generate an operating result (EBITDA) of EUR 2.3 billion to 2.6 billion. Adjusted free cash flow is expected to be between EUR 1.0 and 1.2 billion. In the second half of the year, the Group expects slightly higher potash prices than in the first half.

    In the second quarter, the Group more than doubled revenues to EUR 1.5 billion compared with the same period last year, exceeding analysts' estimates. The main drivers were good business in Northern and Eastern Europe and high demand from the chemical industry. In operational terms, the Kassel-based company shone with an increase in EBITDA to EUR 706 million. The bottom line was an adjusted profit from continuing operations of EUR 436 million. That is almost three times higher than in the previous year.

    Due to the reduced share price level, a number of favorable entry levels are opening up for investors. Analysts believe ThyssenKrupp shares have more than doubling potential. K+S shares are still well below their highs. In particular, the shares of Manuka Resources appear to offer good opportunities at the current level following the sharp price correction.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

    Related comments:

    Commented by Armin Schulz on February 6th, 2023 | 07:46 CET

    Nel ASA, Manuka Resources, TUI - Which stocks will take off in 2023?

    • Mining
    • Commodities
    • Silver
    • Gold
    • greenhydrogen

    Shares are a popular form of investment that can hold a lot of potential. Particularly interesting are stocks that are positioned before a turnaround. This means that the Company has had difficulties in the past but is now expected to see positive changes in its business potential. These stocks can bring large profits if successful, as they often trade at lower prices and have great upside potential. However, it is important to thoroughly analyze the Company's financials and business model before investing in such stocks. We take a look at three promising titles.


    Commented by Juliane Zielonka on February 3rd, 2023 | 12:58 CET

    Booming energy supply & AI with GoviEx, AMD and Meta Materials

    • Mining
    • uranium
    • GreenTech
    • chips

    The EU Parliament has included gas and nuclear power as "transitional activities" in the list of green technologies that accelerate the transition to climate neutrality. Demand for uranium continues unabated worldwide. Explorer company GoviEx is filling the gap through its exploration activities for uranium at two renowned sites. Those interested in learning more can ask CEO Daniel Major about it on February 15. The expansion of a stable energy supply and simultaneous CO2 reduction is also a big topic for semiconductor manufacturer AMD. ChatGPT is on everyone's lips and is only the beginning of an AI boom that will require chip technology at universities and data centers, for example. Zuckerberg is also using AI to expand his metaverse. He plans to use artificial intelligence to explore green energy options further.


    Commented by Stefan Feulner on February 3rd, 2023 | 12:54 CET

    BYD, Power Nickel and Infineon - News drives share prices

    • Mining
    • Nickel
    • Electromobility

    The events are overlapping. In addition to the daily geopolitical news, the central banks are in the spotlight these days. Despite a further interest rate step, the FED sent positive signals to the capital market because the end of the strict monetary policy is approaching. In addition, the reporting season started, which could offer several surprises already at the start. After the price corrections, many companies have opportunities for a sustainable rebound.