April 6th, 2023 | 09:50 CEST
Blackout in Germany! Siemens Energy, Myriad Uranium, Rheinmetall - We are shutting down the reactors!
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Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Siemens Energy - Now is the time for Greentech
A good 30 years ago, today's Siemens Gamesa became a pioneer in offshore wind energy when the world's first offshore wind power project was installed in Vindeby in 1991. Because of rapid climate changes, researchers see a growing need for wind turbines, especially offshore. Siemens Gamesa is the global market leader in offshore wind power and, following the complete takeover, has now been part of Siemens Energy AG from Munich since the end of 2022.
Global electricity demand is expected to continue to grow dramatically, with the aim of being as "green" as possible. The exponential growth of offshore wind energy can be attributed to several favourable factors, including abundant space at sea and larger, more consistent wind resources, as well as technological advantages in continuous availability and capacity factors.
Investment in offshore wind is expected to accelerate further in the coming years, and based on 260 existing turbines worldwide, installation is expected to exceed 225 GW by 2030. China took the lead with 24 GW installed capacity in 2021, followed by the UK with more than 10 GW and Germany in third place with around 8 GW installed capacity. Siemens Energy shares were quick to turn the policy shift into profit, reaching a new 52-week high of EUR 21.74, up 100% in 6 months. The estimated P/E ratio for 2024 thus climbed above 20. Caution: The share is not cheap now; the next quarterly figures will be on 15 May.
Myriad Uranium - Dynamic development in Africa
With the global energy crisis, nuclear power is coming to the fore again, despite Fukushima. In China, for example, 47 new reactors are on the drawing board, and Russia and India are also planning a major expansion. Compared to dirty coal power, nuclear energy is probably justifiable if you put on the CO2 glasses. Nevertheless, there is, of course, a long-term problem with processing and final storage.
In the current mixed situation, however, the uranium market has been moving strongly in recent months. Some exciting projects are located on the raw material continent of Africa. For example, Global Atomic has secured a giant project in Niger near the French state-owned company Orano. The country is the sixth largest uranium producer in the world, with a 7% market share. Canadian explorer Myriad Uranium, like its predecessor GoviEx, has set up shop just around the corner. The assumption is that the properties already being mined have further ore strands in different directions and that one can come to a resource definition with little effort.
The reasoning is conclusive because Myriad has a very attractive land package with more than 1,800 sq km, and the licences were acquired in time before the Russian campaign began. This now creates huge advantages over the competition. Orano, the state-owned energy company, is currently investing over USD 115 million in formal in-situ recovery (ISR) testing at its Imouraren project in the fertile Tim Mersoi Basin. Imouraren is Africa's largest uranium deposit, with 384 million pounds of U3O8 and the second largest globally. If successful, the application of ISR to these deposits could be a game-changer, as ISR is the world's leading low-cost production method for the uranium industry but has not yet been applied in Niger.
The Arlit fault, which hosts Imouraren and is thought to control mineralization throughout the Tim Mersoi Basin, runs directly through Myriad's Agebout licence. There, about 15 km north of Imouraren, it intersects with part of the important Madaouela fault system, which hosts a GoviEx deposit containing 100 million pounds of U3O8. Imouraren North has never been properly explored until now. Now Myriad, which holds a 100% option interest in Agebout, will take over.
"From day one, this intersection of major fault structures has been a high-priority target area within our 1,800+ sq km land package," said Thomas Lamb, CEO of Myriad. "We understand that Areva planned to intensively test this area for roll-front sandstone deposits such as Imouraren but withdrew from all exploration activities in Niger before the programme could commence."
Myriad has come into full focus due to the major's activities on the ground, with its share price jumping 20% on the day. Currently, Myriad can be bought on the stock exchange at around CAD 0.32. With a market capitalization of only CAD 8.5 million, the value is far too cheap.
At this year's PDAC mining conference in Toronto, CEO Thomas Lamb presented his strategy in the uranium market to the International Investment Forum - IIF (www.ii-forum.com):
Rheinmetall - Good order situation, but slowly getting a little long in the tooth
A week ago, Rheinmetall CEO Papperger travelled to Ukraine and met President Zelenskyy. According to the head of state, the partnership is to be deepened to meet the needs of the Ukrainian armed forces. Since the Russian invasion more than 13 months ago, Ukraine has mainly received armoured vehicles from Rheinmetall's product range. Papperger had also spoken several times of plans to set up a tank factory in the country, which is dependent on Western financial aid.
This week, news reached us that there are plans to set up a new hub in Romania to maintain Western war materiel. Romania's President Klaus Werner Iohannis has welcomed Rheinmetall's announcement that it will maintain and repair weapons such as battle tanks and howitzers from the war zone in the future. This will presumably not happen without state subsidies since the Federal Government has promised Ukraine further military aid of EUR 15 billion.
The Rheinmetall share is one of the draft horses in the DAX 40, which was successfully included on the March futures expiry. Technically, this entails large purchases by ETFs worldwide. The share was thus also able to quickly advance into the analysts' target zone of EUR 287 on the Refinitiv Eikon platform. Yesterday, the first profit-taking occurred, which caused the share price to plunge by 5%. With a 2023 P/E ratio of over 20, the mechanical engineering company is no longer cheap. We can identify major technical support at EUR 240. Even if a stronger cooling is urgently needed, the correction should stop at this line at the latest.
Whether climate protection, gas emergency or shortage of raw materials - humanity must rethink its energy supply and remain as open to technology as possible. The condemnation of nuclear energy is a specifically German issue that will cost citizens a great deal of money over the long term. But because the world ticks differently from Germany, investments in uranium and nuclear power make perfect sense.
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