April 16th, 2021 | 07:33 CEST
Almonty Industries, Millennial Lithium, Orocobre- It pays off for investors!
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
|
Author:
Carsten Mainitz
ISIN:
CA0203981034 , CA60040W1059 , AU000000ORE0
Table of contents:
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.
Tag cloud
Shares cloud
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.
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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.
The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.
