Menu

Recent Interviews

Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


16. April 2021 | 07:33 CET

Almonty Industries, Millennial Lithium, Orocobre- It pays off for investors!

  • Tungsten
Photo credits: pixabay.com

Since 2011, the European Commission publishes a list of critical raw materials in intervals of 3 years. Thereby, the supply risk of the European economy with these raw materials is measured. While the list initially comprised only 14 raw materials, including rare earths and tungsten, it has now grown to 30. Lithium, bauxite, strontium and titanium were added most recently. The EU has formulated a comprehensive plan of action to reduce dependence on China. Any imbalance in supply and demand has an impact on price levels. If you position yourself correctly, this opens up great opportunities for returns. We present three exciting companies below.

time to read: 3 minutes by Carsten Mainitz
ISIN: CA0203981034 , CA60040W1059 , AU000000ORE0


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview

 

Author

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


ALMONTY INDUSTRIES INC - Use consolidation to enter the market

The EU has classified tungsten as a critical raw material since the first study and in the top ranks in terms of economic importance and procurement risk. Tungsten is the chemical element with the highest melting and boiling point and is therefore used in many important industrial sectors. The market is dominated by China, where tungsten is mined predominantly as the main product. Typical by-products are tin and molybdenum, but also gold, silver and occasionally fluorite or bismuth. The substitutability of tungsten by other raw materials is severely limited.

Almonty is focusing on tungsten with several projects. The focus of activities is currently in Europe, with the Los Santos Mine in western Spain and the Panasqueira Mine in Portugal. However, the music is playing in Asia. Here, Almonty is building the Sangdong mine in South Korea, the largest tungsten mine outside China. The Company also owns the Sangdong molybdenum project. Here, an extensive drilling program will be carried out this year to take an essential step towards resource determination. Molybdenum is also a critical raw material with very high heat resistance and is often used for special alloys in stainless steel.

Recently, the share reached a price level of CAD 1.30. Currently, the shares are consolidating at a level of around CAD 1, valuing the Company at CAD 191 million. The weaker share prices are undoubtedly related to the information that the Company published at the end of March. Almonty was unable to present its annual financial statements for the past fiscal year by March 31, as required by law. The reasons given by Almonty were that the auditors were unable to carry out the required inspection of the production facilities in Portugal due to Corona. Almonty assured that the annual report would be published by April 23. Forward-looking investors are taking advantage of the current favorable share price level for (additional) purchases.

MILLENNIAL LITHIUM CORP - 2022 in focus

The critical raw material lithium is urgently needed for the transition to the electromobility age. Experts estimate Europe will need up to 60 times more lithium by 2050 for e-car batteries and energy storage alone. Millennial controls over 20,000 hectares of prime land in the heart of South America's famed "Lithium Triangle," home to the world's most prolific lithium deposits. The Company is advancing two lithium projects to production in Argentina.

The first quarter of 2021 can certainly be considered a milestone. Millennial was able to attract well-known investors, and a capital increase of CAD 34.5 million was placed. With the inflow of funds, the Pastos Grandes project will be further developed and go into production in two years. Companies operating in the region include SQM, Albemarle, Livent Corp. and Orocobre.

Important newsflow along the way represents the commissioning of the pilot plant to produce battery-grade lithium carbonate. However, further progress on the project will also make the quality and value of the Company visible. After the share price setback, the Company is worth about CAD 300 million at prices of CAD 3. The share is attractively valued given the potential.

OROCOBRE LIMITED - Benefiting from the rising lithium price

Orocobre has also focused its activities on Argentina, with lithium at the center of its focus. The Olaroz lithium plant is located in the Puna region of Jujuy Province in northern Argentina, over 230 kilometers northwest of the capital Jujuy. Also part of Orocobre is Borax Argentina, which operates open-pit mines in Tincalayu and Sijes. Borax Argentina manufactures and refines a range of products, including minerals. The refined products are used in many markets and industries, such as agriculture, but also in the form of different fibers in special applications with ceramics or glass, among others.

Earlier this week, the Company announced that it sold 3,032 tons of lithium carbonate for USD 5,853 per ton in the first quarter. Due to increased demand, this represents a price increase of over 50% from the 2020 shooting quarter. Orocobre also announced that prices for the quarter ending June 2021 are expected to be around USD 7,400 per ton.
The Company has also sold forward all production through the end of 2022, securing a high price level. Additional production will become available as Olaroz reaches new production levels. Orocobre will release full first quarter details on April 21. Currently, at prices around AUD 6, the Company is not too expensive, valued at AUD 2.1 billion.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

19. October 2021 | 12:46 CET | by Carsten Mainitz

Nvidia, Almonty Industries, BP - Scarcity drives prices!

  • Tungsten

The shift from fossil fuels to renewable energy sources is increasing the need for industrial metals. Copper's excellent thermal conductivity, along with its corrosion resistance, ease of processing, strength, durability and formability, offer unbeatable advantages in solar thermal applications. Tungsten's properties also play an increasingly important role in power, lighting, medical and aerospace applications. Companies producing the critical metal have significant upside opportunities in this regard.

Read

13. October 2021 | 13:23 CET | by André Will-Laudien

BASF, Almonty Industries, Millennial Lithium, BYD - All sold out?

  • Tungsten

Anyone who can offer scarce raw materials today is in a fortunate position as far as business prospects are concerned. In particular, metals and battery raw materials are in high demand and have become a bone of contention in globalization. That is because many critical metals are majority-owned by China, meaning that the regime decides on potential allocations to foreign countries. Admittedly, the Middle Kingdom wants to stay in business with the West, so long-term contracts exist. Nevertheless, the domestic industry is naturally given preferential treatment; we can only hope for political stability and incremental improvements in the West. Who are the interesting players in the tight commodity market?

Read

04. October 2021 | 12:36 CET | by Armin Schulz

BP, Almonty Industries, Standard Lithium - Which commodities offer the most potential?

  • Tungsten

Last Tuesday, the barrel of oil reached the USD 80 mark again for the first time since 2018, even though OPEC had recently increased production volumes. The discrepancy between supply and demand obviously could not be closed by the production increase. Comparing tungsten with gold, an investment in tungsten could beat gold by 70% since 2010. In the case of lithium, the price is also rising significantly. The automotive industry has decided to push ahead with its conversion to e-mobility in the interests of sustainability. So, the ambitious goal of charging only USD 100 per KWh of capacity in an e-car battery will not happen, making the price of e-cars much cheaper. Today, we take a look at three companies that produce these raw materials and analyze the potential.

Read