Boom market for renewable energies - thyssenkrupp nucera, Globex Mining, Energiekontor

thyssenkrupp nucera - Growth before profitability

The manufacturer of electrolysers for the production of green hydrogen is growing strongly but at the expense of profitability. The Dortmund-based company expects a further sales increase in the mid double-digit percentage range for the 2024 financial year, which has been running since the first of October, led by the completion of projects in the field of water electrolysis that have already been contractually agreed. However, this is associated with high start-up costs for the growth strategy, as a result of which thyssenkrupp nucera is also accepting a negative EBIT in the mid double-digit million range for the coming financial year.

In the 2023 financial year to the end of September, the thyssenkrupp subsidiary recorded a sales increase of 70% to EUR 653 million. Earnings before interest and taxes exploded from EUR 8.8 million to EUR 23.8 million. Net profit also multiplied year-on-year from EUR 6.00 million to EUR 22.5 million.

The figures for the past financial year and the forecasts for the current year were celebrated with a jump in the share price of over 6% to EUR 17.00. Following the publication of the final figures, US analyst Bernstein Research reiterated its price target of EUR 28, and the investment rating remains unchanged at "Outperform".

Globex Mining - The supplier of renewable energies

One obstacle to the further expansion of renewable energies is the sufficient supply of critical raw materials. Growth urgently requires metals such as iron, copper and rare earths, for which demand already exceeds available resources in some cases. The fact that many of the necessary goods are located in China, and the trade war could escalate further means that alternatives in Western regions are all the more in demand.

Globex Mining is one supplier of the future that can supply almost all the materials required with its 232 holdings. Its broadly diversified portfolio includes 118 precious metal projects with gold, silver, platinum and palladium deposits, 62 properties with base metals and a further 52 deposits filled with industrial metals such as lithium and cobalt, which are essential for the climate transition. Of these, around 90 properties are operated by licensees, through which the Canadians receive regular cash flow from royalties. They are also responsible for the exploration of the projects and bear all costs.

Initial results were recently announced from drilling conducted by Brunswick Exploration Inc. on Globex's Lac Escale lithium property in the Eeyou Istchee James Bay region of Quebec. Brunswick has drilled a total of 36 holes totaling 5,090 m. Of these holes, 33 encountered mineralized pegmatite over a length of 1.5 km. The drilled intersections showed exceptionally high lithium grades and significant widths, for example, 2.57% lithium oxide over 25.8 meters, including an intersection of 3.08% lithium oxide over 14.2 meters at 28 meters.

Globex Mining currently has a market capitalization of CAD 50.78 million. In addition to over 230 projects, the Company, led by mining veteran Jack Stoch, has cash and short-term realizable investments of CAD 25 million.

Energiekontor - With forecast increase

The developer and operator of wind and solar parks celebrated a massive jump in its share price of over 8% to EUR 76.20. The reason for the share price fireworks was an increase in the profit forecasts for the current financial year 2023. The main reason for the increase in estimates was the disposal of another Scottish wind power project in addition to a positive project business.

The Garbet wind farm project, which was recently sold, is located near Dufftown in the northeast of the Scottish Highlands, UK. The new owner of this project is a fund managed by Capital Dynamics, a global and independent private asset management company. The wind farm, which is scheduled to be in commercial operation by the end of 2026, is expected to reach a maximum capacity of 46 megawatts. After commissioning, the wind farm will benefit from Energiekontor's extensive operational experience and optimization support.

Originally, the Bremen-based company expected to exceed the previous year's consolidated EBT, which amounted to EUR 62.9 million, by 10 to 20%. Management is currently forecasting Group EBT of between EUR 80 and 100 million for 2023, corresponding to an increase of around 30 to 60% compared to the previous year.

Shares in thyssenkrupp nucera soared after the publication of the annual figures and the outlook for the coming year. Energiekontor is also up significantly after raising its annual forecast. Globex Mining should benefit significantly from the demand for critical metals for the energy transition.