Menu

Recent Interviews

Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


26. May 2021 | 10:45 CET

Almonty Industries, ThyssenKrupp, Klöckner & Co.- Indispensable raw materials!

  • Tungsten
Photo credits: pixabay.com

According to the EU, tungsten is one of the most critical raw materials globally in terms of economic importance and procurement risk. The chemical element has the highest melting and boiling point and is therefore used in many critical industrial sectors. The main application of tungsten is in the form of tungsten steel - a high-alloy steel. Given the resource scarcity, it is reason enough for us to take a closer look at the interface between the steel industry and tungsten production with three promising stocks. Where is the yield driver?

time to read: 3 minutes by Carsten Mainitz


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 - Step by step to success

The Canadian Company's operations include mining, processing and transporting tungsten concentrate from the Los Santos mine in western Spain and the Panasqueira mine in Portugal. In addition, Almonty is developing the Sangdong tungsten mine in South Korea and the Valtreixal tin-tungsten project in northwestern Spain. The focus of investor interest is the Sangdong mine in South Korea, which is to be developed into the largest tungsten mine outside China as a key asset. Historically, the mine is one of the largest tungsten mines in the world. In addition, the mine is one of the few mines with high-grade tungsten deposits outside the People's Republic that can be classified as long-lived. Thus, Almonty can consider itself very fortunate with the 2015 acquisition. The Company is stringently working on the development of the project. A few days ago, Almonty announced the start of the road and river diversion project. Monthly meetings are now held with residents to update them on the progress. Good cooperation and a good relationship with the local population should not be underestimated. Many a company has already paid a high price in this respect.

With the Sangdong mine, Almonty has a world-class asset in terms of desirability (resource scarcity) and size. The EU long ago formulated an extensive catalog of measures to reduce dependence on China for critical raw materials - and here, tungsten is at the top of the list. The chemical element is predominantly mined as the main product. Still, typical by-products such as tin and molybdenum and gold or silver are nevertheless not to be sneezed at.

The substitutability of tungsten by other raw materials is strongly limited; thus, the demand and the price curve of the chemical element should rise in the long term. Any imbalance of supply and demand, which can be triggered at any time by geopolitical tensions or China's supply shortage, plays into the cards of (future) producers like Almonty enormously. Currently, investors have to put CAD 1.15 on the table for one share, which values the Company at CAD 220 million. This valuation level leaves enough room for share price increases.

THYSSENKRUPP AG - Spin-off of steel division approved

The Essen-based Company is increasingly sharpening its Group profile. With the extensive realignment of the Company decided in May 2019, all areas were put to the test. It also (re)discovered its in-house capabilities in green hydrogen. So did the stock market, which sent the share up from EUR 4 to EUR 12 from fall 2020 to spring 2021. Now the price is around EUR 9.50 per share. The stock market scales show EUR 5.9 billion.

There are also successes to report elsewhere. On May 11, the Group reported Q2 figures and, after a better-than-expected quarter, once again raised its forecast for the current fiscal year. The Essen-based Company is benefiting from the recovery in the steel and automotive industries and from good business with industrial components. The restructuring of the steel division is also progressing positively. Investors took advantage of the constellation and followed the stock market rule "sell on good news." A few days ago, another piece of good news also fizzled out: CEO Martina Merz was able to announce the spin-off of the steel division from the overall Group with the backing of the Supervisory Board. "The Supervisory Board confirmed our chosen path on Wednesday. We can now concentrate fully on making the business independent," said the company boss. The aim is to make the crisis-ridden steel division competitive again under its own steam. That means either a spin-off or an independent subsidiary with its own financing. However, a merger with competitors is not an option. For us, prices below EUR 10 are a real bargain.

KLÖCKNER & CO SE - Ambitious goals

Klöckner & Co SE is one of the largest producer-independent steel and metal distributors in Europe and North America. The Company's primary business is the stockholding distribution of steel products and non-ferrous metals (NF metals) and the operation of steel service centers. Here, digitalization and automation are the keys to growth and success.

Recently, the new CEO, Kerkhoff, announced his intention to increase sales and earnings by 2025 significantly. In terms of adjusted operating earnings (EBITDA), the steel trader wants to more than double the pre-pandemic level by 2025. The product and service portfolio and the partner network are to be expanded, and the ambitious goal is to become the "leading digital platform" for steel and other materials in Europe and America. Recently, Warburg Research took up the valuation of Klöckner & Co with a price target of EUR 14 and a "Buy" investment recommendation. Analyst Cansu Tatar sees the Company as a digital pioneer and thus grants the shares an upside potential of 30%.


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:

08. June 2021 | 07:47 CET | by Stefan Feulner

NIO, Almonty Industries, Daimler - The power struggle escalates

  • Tungsten

The US government bans American investments for 59 companies from China. They are accused of cooperating with the Chinese state apparatus and military. The response from Beijing is not likely to take long. The Middle Kingdom is pulling the strings concerning the globally planned energy revolution. Whether solar plants, wind turbines or electric cars. The switch from fossil fuels to a sustainable energy supply based on renewable energy requires many metals. At the moment, more than 80% of the production of rare metals takes place in China. The currently prevailing chip shortage could be just a precursor.

Read

04. June 2021 | 08:11 CET | by Nico Popp

Lufthansa, Almonty Industries, Volkswagen VZ: Fresh starts and takeover fantasies

  • Tungsten

It starts again. More and more companies are leaving the crisis behind. Restaurants are full even with mandatory testing, carmakers are picking up where they left off before the crisis, and airlines are once again enjoying more vacationers and business travelers. With the economy making a comeback, certain companies are in particular focus. Others reveal great opportunities only at a second glance. We present three stocks.

Read

17. May 2021 | 08:40 CET | by Armin Schulz

Jinkosolar, Almonty Industries, ThyssenKrupp - Commodity and energy prices still rising

  • Tungsten

Last week, a 4.2% inflation rate for consumer products was reported in the USA, which caused a correction in the markets. Construction prices rose by up to 70% in some cases. The Federal Statistical Office in Germany currently assumes inflation of 2%. However, there is already a partial shortage of chips for the automotive industry, wood is being imported expensively from Ukraine, and there is also a shortage of supplier parts in other sectors. One should strongly assume that inflation will be higher. Energy prices also rose by a good 27% last year. The long cold winter will cause prices to increase further there as well. To protect against inflation, investors should focus on quality stocks of companies that manufacture products and benefit from such bull markets in the long term. We present three attractive candidates today.

Read