August 14th, 2025 | 07:15 CEST
BOMBSHELL! RENK, Bayer, Desert Gold! Who has the potential to multiply?
Bombshell at RENK! Order intake is exploding! Revenue and earnings are also already up significantly. After Rheinmetall and Hensoldt posted rather disappointing figures, the defense boom appears to be reaching the tank transmission specialist. The stock is reacting strongly. Meanwhile, the share price of gold explorer Desert Gold has not yet responded to the recent Preliminary Economic Assessment (PEA). This is surprising, as the returns are high - even with the conservative gold price assumptions. In an interview with analysts, the CEO once again explains the opportunities. GBC Research sees potential for multiplication here. At Bayer, investors have recently been focusing more on litigation risks in the US than on upside potential. However, the latest news from the pharmaceutical division is driving the Leverkusen-based company's shares up again. Is the weak phase finally over?
time to read: 3 minutes | Author: Fabian Lorenz
ISIN: RENK AG O.N. | DE000RENK730 , BAYER AG NA O.N. | DE000BAY0017 , DESERT GOLD VENTURES | CA25039N4084
Table of contents:
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
Tag cloud
Shares cloud
Desert Gold: An opportunity in the gold sector
Desert Gold currently offers an opportunity in the gold sector. Last week, the long-awaited Preliminary Economic Assessment (PEA) for the SMSZ project in West Africa was published. Despite strong prospects, Desert Gold's share price has hardly reacted.
Yesterday, Desert CEO Jared Scharf clarified in an interview with analysts from GBC Research that the study reflects only a fraction of the actual potential. According to this, only around 10% of the current gold resource of 1.1 million ounces was taken into account. Based on a gold price of USD 2,500 per ounce, the PEA calculates an internal rate of return (IRR) of 34% and an after-tax cash flow of USD 71 million. According to Scharf, the IRR is even above 50% at current prices. Thanks to low all-in sustaining costs of around USD 1,350 per ounce, the project has high leverage to the gold price.
The reason for the "small" PEA is that Desert is pursuing a modular processing strategy. Mobile open-pit mining equipment will enable the Company to start production quickly and remain flexible. The current permit allows for the processing of up to 36,000 tons per month – a capacity expansion is possible and could significantly accelerate cash flow.
At the same time, the current gold resource of 1.1 million ounces at the SMSZ project could be significantly expanded. This is because only 5 of the more than 30 known gold zones have been included in the resource estimate to date. Scharf is also optimistic about Desert Gold's second project. Exploration is scheduled to begin after the end of the rainy season in Côte d'Ivoire. Link to interview.
This should keep Desert Gold on track in terms of operations. Analysts at GBC Research see the fair value of the share at CAD 0.425. The security is currently trading at CAD 0.08 and is listed on Tradegate in Germany, among other places.
https://youtu.be/AQKxVIqmfwQ?si=GiHQAgpnt6w4ISGf
RENK: One defense company that delivers
At least one German defense company is already benefiting from the supercycle. RENK posted impressive figures for the first half of 2025 yesterday. The order intake in particular caused jubilation on the stock market, rising by 46.8% to EUR 921 million in the reporting period. Rheinmetall and Hensoldt had previously opened their books, and their order intake had caused disillusionment and led to hopes being pinned on the second half of the year. As a result, RENK shares rose by more than 5% yesterday.
The Company, which is known for its transmissions for the Leopard 2 tank, also posted impressive operating results. Revenue rose by 21.5% to EUR 620 million. Adjusted EBIT climbed by 29.4% to EUR 89 million. With a book-to-bill ratio of 1.5x and a total order backlog of EUR 5.9 billion, visibility for the coming quarters has further improved.
Given this strong performance, the forecast for the current year was (naturally) confirmed. RENK aims to increase revenue to over EUR 1.3 billion (2024: EUR 1.14 billion). EBIT is expected to be between EUR 210 million and EUR 235 million (2024: EUR 189 million).
Bayer: Billion-dollar deal
After uncertainty surrounding Bayer's court cases in the US caused its shares to fall last week, this week has seen a return to optimism thanks to positive developments in the pharmaceuticals division. Bayer shares rose by more than 4% yesterday alone.
The reason: The Leverkusen-based company has signed a licensing deal with Kumquat Biosciences that could be worth billions. The US biotech company specializes in the KRAS signaling pathway. The KRAS signaling pathway is a central "control center" in human cells that regulates how they respond to growth and division signals. It is one of the most frequently disrupted signaling pathways in cancer biology.
Kumquat Biosciences is developing a small-molecule inhibitor designed to specifically block the KRAS G12D mutant. This mutation is particularly common in pancreatic, colon, and lung cancer and is currently difficult to treat medically. IND (Investigational New Drug) approval for the compound was granted by the US FDA in July 2025.
Kumquat intends to conduct the Phase Ia study independently. Bayer will then take over the further development, approval, and marketing of the active ingredient. Bayer could pay Kumquat Biosciences up to USD 1.3 billion in total, but many milestones still need to be achieved.
Desert Gold currently offers a great opportunity in the gold sector. The PEA has not yet triggered the expected price explosion, but a sharp upward move may be imminent. According to GBC Research, a multiplication is possible. After Rheinmetall and Hensoldt disappointed, particularly in terms of order intake, RENK's strong figures were important for the entire industry. Meanwhile, Bayer shares have already delivered a solid performance this year.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
