04. August 2021 | 11:54 CET
BMW, NSJ Gold, Infineon - Enormous demand
In recent months, the shortage of semiconductors has been a major headache for the manufacturing sector, especially for carmakers. Production losses and short-time work were the result of the global shortage. There seems to be no improvement in sight. Leading chip manufacturer Intel expects the chip shortage to worsen in the coming months and does not expect the situation to ease for at least two years. There is a similar shortage of raw materials for the energy transition. Position yourself in good time.
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ISIN: DE0005190003 , NSJ Gold | CA62973P1071 , INFINEON TECH.AG NA O.N. | DE0006231004
"[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.
NSJ Gold - Gold and copper in view
The shortage of raw materials around the energy transition and inflation fears continue to be the best conditions for industrial metals such as copper and precious metals such as gold. The exploration Company NSJ Gold is active in western Arizona in Lapaz County. Here, the Company owns an option on 100% of the Golden Hills project, which produced gold back in the 1940s. High grades of copper and iron, which are in high demand for industrial purposes, were also suspected as by-products. Golden Hills consists of 7 patented and 114 unpatented mining claims covering a total of 9.6 km².
Located in close proximity to Arizona Metals Corp.'s Kay Mine and Northern Vertex Mining's Moss Mine, the area sits on the Walker Lane Gold Trend. This formation has prospective gold and copper deposits. It is interesting to note that NSJ Gold's current Vice President of Exploration, Richard Kern, was responsible for developing the Moss Mine in the late 1990s.
The full assay results from the recent drill program and future plans for the Golden Hills project were announced recently. The program targeted north-northwest trending geophysical anomalies and consisted of 16 drill holes. In total, the drill program intersected 102m grading, an average of over 0.4 grams of gold per tonne, 212m grading around 0.1% copper and 207m averaging over 20% iron. All findings from the recent drill program and geophysics will be used to plan the next phase. Drill holes are designed to expand and confirm previous high-grade gold discoveries.
Currently, the market value of NSJ Gold is only EUR 3.54 million. The promising location next to already producing mines, and the experienced management, promise high chances for long-term value increases. However, NSJ is still at the beginning of its development. Do not forget to limit when buying!
BMW - Warning of difficult times
Bavarian carmaker BMW got off lightly in the first half of the year, even outpacing Mercedes-Benz in car sales with 1.34 million units. However, CEO Oliver Zipse indicated that the second half of the year is likely to be more volatile given various risks such as raw material prices and semiconductor supplies. The Munich-based Company has already felt the effects of the semiconductor crisis. Production in Regensburg had to be stopped for a while. As a result, management expects an EBIT margin of 7% to 9% for the full year in the Automotive segment. In the first half of the year, 13.0% was reported.
In general, the first half of the year was characterized by records. EUR 9.76 billion was on the pre-tax profit side, and sales of automobiles were better than ever before. Sales grew by almost 30% to EUR 55.36 billion.
As a result of the subdued outlook and negative analyst opinions, the price of preferred shares slumped at times by 5% to EUR 70.20. There is a significant support zone in this area. Should this be broken, the next price target is around EUR 66.0.
Infineon - Demand too high
In contrast to carmakers such as BMW, Daimler or Volkswagen, semiconductor manufacturer Infineon is benefiting from the ongoing chip boom. However, pandemic-related restrictions on production in Malaysia and after-effects of a winter storm in Austin in the United States slowed down an even better result. As a result, sales rose by only EUR 22 million to EUR 2.722 billion compared to the previous quarter, while profits expanded from EUR 209 million to EUR 245 million.
For the current fiscal year to the end of September, the Group expects sales of around EUR 11 billion, compared with EUR 8.6 billion in the previous year. The operating margin is expected to exceed 18%. After losses of over 5%, Infineon turned around in trading and closed almost unchanged at EUR 32.35. The Company should continue to benefit from the semiconductor boom. We remain optimistic about the share.
The shortage of semiconductors will continue to burden the industry for some time to come. Car manufacturers such as BMW are particularly affected. In contrast, semiconductor manufacturer Infineon continues to benefit from the boom and thus has orders on its books that are secured for the long term. Due to the ongoing shortage of industrial metals such as copper, and the inflation fears, the gold explorer NSJ Gold offers a promising long-term entry opportunity.