Close menu




November 25th, 2021 | 14:31 CET

BASF, Osino Resources, Standard Lithium - Why does nobody believe it?

  • Lithium
Photo credits: pixabay.com

Since inflation rates have been growing, central banks have placated that price increases would only be temporary and would level off next year due to the recovery after the Corona lockdowns. Therefore, an interest rate hike is far from an issue; only the pumping of unlimited money into the capital market is to be slowed down to a snail's pace. If the high inflation rates prove permanent, only one thing will help - the flight into gold.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: BASF SE NA O.N. | DE000BASF111 , OSINO RESOURCES CORP. ON | CA68828L1004 , STANDARD LITHIUM LTD | CA8536061010

Table of contents:


    BASF - Trade union steps into the breach

    Gasoline, electricity and food, everything has become more expensive in the current year. The only thing that is not rising in line with inflation is employee wages. The Mining, Chemical and Energy Industrial Union (IG BCE) is now demanding significantly more money for the approximately 580,000 employees in the German chemical and pharmaceutical industries. The goal must be to sustainably increase people's purchasing power, said Ralf Sikorski, deputy chairman of the Mining, Chemical and Energy Industrial Union, in Hanover on Tuesday.

    "There is no question that in the end, there must be an increase in pay above the rate of inflation," Sikorski said, without giving a precise figure for the demand. To do this, one will look at the inflation rate in the spring, when the discussions with the employers are to start. So far, the employers have rejected such demands.

    In the meantime, the chemicals group is making further progress with its targets for reducing CO2 emissions. Following RWE and Orsted, further cooperation with Air Liquide has now been initiated. The two partners plan to build the world's largest cross-border value chain for carbon capture and storage (CCS). The aim is to significantly reduce CO2 emissions from industry in the port of Antwerp. In the first decade of operation alone, 14.2 million metric tons of CO2 can be prevented.

    Meanwhile, the BASF share is heading for support at EUR 62.00 due to the weak overall market. In the long term, the stock remains interesting.

    Osino Resources - Ideally positioned

    After the gold price fell below the USD 1,800 mark again, a test of the year's lows at USD 1,680 is likely from a technical perspective. Gold is currently not in vogue, the stock market is booming, and the mainstream still believes in a temporary inflation rate. However, this is likely to change in the first quarter of the year at the latest, when it will be determined that the high inflation rates are more of a longer-term phenomenon after all. Therefore, it is already advisable to start looking for promising mining producers or exploration companies in order not to miss the long-term expected increase in the gold price.

    One company consistently delivering good exploration results and whose management has already proven its ability is Osino Resources. In addition, there are perfect conditions in terms of infrastructure and jurisdiction in Namibia. There, the Canadian Company maintains the Twin Hills project, which covers 6,700 sq km. The deposit is centrally located in the high-grade Damara sedimentary mineral belt along strike from the producing Navachab and Otjikoto gold mines. In the past, management had passed its baptism of fire with the Otjikoto mine, selling it to B2 Gold for CAD 180 million. CEO Heye Daun has a similar scenario in mind this time around.

    In the second quarter of 2022, the experienced manager expects new results around the project, which will provide clear indications of Osino Resources' promising outlook. Above all, the first estimate from the second quarter of this year of 430,000 ounces at 1.00 g/t gold (indicated) or 1.47 million ounces at 1.08 g/t gold (inferred) is to be significantly surpassed here. Sprott Equity Research is sure that the currently planned drilling program over 75,000m should bring further high-grade shoots to the surface and assigns a price target of CAD 2.55. Currently, the stock is trading at around 50% below the target price at CAD 1.22.

    For the further steps, Osino Resources procured money on the capital market. Osino placed 9.545 million shares at CAD 1.10, combined with a half warrant at CAD 1.35 for 22 months. The capital will be used primarily for exploration purposes at the Twin Hills gold project and is also planned for assays, technical studies, acquisition of surface rights and general corporate purposes. Thus, the Company is well-financed for the next year.

    Standard Lithium - Drumbeat

    Unlike gold, the lithium market is so overheated that experts already see a kind of bubble forming, at least in the short term. However, in the long term, the lithium price is also likely to continue its upward trend; demand from the battery industry is too high and supply too scarce.

    Standard Lithium is a bit reminiscent of the New Market era of the early 2000s. The Company, which owns two projects, Arkansas Smackover and Bristol Lake, currently makes neither revenue nor profit. Nevertheless, the stock market value is a proud EUR 1.15 billion. With a capital increase of USD 100 million, the next bang for the buck has now followed. With Koch Investment Group, the Canadians receive a new investor, who acquires almost 13.5 million shares at a share price of USD 7.42.

    "We are entering an important phase for Standard Lithium and are excited to begin it with a globally recognized industry leader like Koch Strategic Platforms as our partner," said Robert Mintak, CEO of Standard Lithium.


    Rising inflation is one of the most important issues currently being discussed in the capital markets. If this lasts longer, there is little going past the precious metal gold. Osino Resources is poised for a long-term gold market rise. In contrast, Standard Lithium has already run too far.


    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.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Stefan Feulner on May 13th, 2024 | 06:30 CEST

    Rheinmetall, Power Nickel, Bloom Energy - Will the rally continue?

    • Mining
    • Gold
    • Lithium
    • Commodities
    • Defense

    After a brief pause in recent weeks, the rally in Germany's leading index, the DAX, has continued unabated, with the target of 19,000 points already in sight. Defense stocks remain the undisputed top performers. Another sector that has taken center stage in recent weeks is commodities. In addition to gold, silver and copper, the industrial metals lithium and nickel are also forming solid foundations for the next upward impulse. Corresponding companies were already running ahead of the base value.

    Read

    Commented by Stefan Feulner on May 6th, 2024 | 07:00 CEST

    Canopy Growth, Globex Mining and Rock Tech Lithium with strong signals

    • Mining
    • Gold
    • Silver
    • Cannabis
    • Lithium

    Now that the precious metals gold and silver are taking a breather after a rally, other markets are becoming the focus of investor interest. In addition to copper, which is likely to reach new highs in the medium term due to supply shortages, lithium, an industrial metal essential for electromobility, continues to work on bottoming out. However, the highlight of the past week in terms of volatility was cannabis stocks, which are expected to remain in focus in the coming weeks.

    Read

    Commented by Stefan Feulner on April 15th, 2024 | 06:45 CEST

    First Majestic Silver, Desert Gold, Albemarle - Escalation paves the way

    • Mining
    • Gold
    • Silver
    • chemicals
    • Lithium

    The events at the weekend, during which Iran carried out a massive airstrike on Israel for the first time, are likely to have escalated the already troubled geopolitics to a new level. It is not yet known whether Israel is planning a counter-attack. Precious metals gold and silver are once again likely to benefit from the uncertainties following the rather weak close to the week. The yellow precious metal could recapture the USD 2,400 per ounce mark, which could also boost the shares of producers and gold exploration companies.

    Read