Menu

Recent Interviews

Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


Karim Nanji, CEO, Marble Financial

Karim Nanji
CEO | Marble Financial
1200-1166 Alberni Street, V6E 3Z3 Vancouver (CAN)

info@marblefinancial.ca

+1-604-336-0185

Interview with Marble Financial: Fintech innovator plans expansion into the US


19. March 2021 | 10:02 CET

BP, Deutsche Rohstoff, Lynas - Attention: a long boom is going on here!

  • Commodities
Photo credits: pixabay.com

Extreme shortages due to the enormous demand for raw materials of the planned energy turnaround and a dispute that continues to swell between China and the US could escalate at any time, even after Donald Trump. A new energy crisis due to a lack of resources is looming. The prices of copper, lithium and rare earth metals are rising rapidly. The demand overhang is likely to accelerate in the coming years. Significantly rising prices are also expected for oil.

time to read: 4 minutes by Stefan Feulner


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview

 

Author

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


Experienced and flexible through the crisis

Crises or not. Thanks to management's many years of experience and flexibility in decision-making, it is possible to profit even from the depths. In Germany, we are currently seeing how not to do this with the Coronavirus containment by politicians. The Deutsche Rohstoff AG did better last year. Through foresight, oil production at the holdings was reduced to a minimum and active hedging was carried out. In addition, the Mannheim-based Company went on a bargain spree and bought several oil fields at sell-out prices. Outside the oil business, the Company seized the opportunity to build up an equity and bond portfolio currently bearing fruit. The NASDAQ-listed Oasis Petroleum, for example, has now been fully exited after having been entered in the second and third quarters of last year. Enormous profits of EUR 7.5 million were realized, with the average selling price more than tripling compared to the purchase price. In addition, a further EUR 3.8 million in unrealized gains are lying dormant in the portfolio.

Pumps running at full speed

With an oil price of around USD 65 per barrel, the pumps are running at full speed again. Significant volume growth can therefore be expected this year. At the end of 2021, the first revenues are expected to be generated from the extensive Knight wells. The Company has invested USD 60 million in this project, which is expected to increase production volumes from 2022. With the bulging cash box of EUR 35.3 million, plus the realized share price gains, further acquisition targets would also be possible. Another investment outside the oil segment, which can still become cash for Deutsche Rohstoff AG, also offers enormous leverage.

The Company holds a 12.8% stake in Almonty Industries. They are on the home stretch to build the largest tungsten mine in the world. Within the next 5 years, when fully commissioned, the Sangdong mine in South Korea is expected to produce 30% of non-Chinese and 7-10% of global supply. From a chart perspective, the resistance at EUR 12.75 stands in the way of further development. Should this be broken, the next price target would be EUR 14. Due to the oil price, which we expect to remain strong, and due to the management's experience, we see good long-term chances of attacking the high at EUR 27.10 again.

Scarcity leading to an explosion

Copper, lithium and rare earth metals - the demand for these raw materials is increasing dramatically. Extreme demand in new technologies is to blame. Rare earth metals are needed, for example, for permanent magnets that drive electric motors. The fact that China has a quasi-monopoly with 80% of production makes the situation even more dramatic. As a result, there are desperate attempts to increase production in North America. The few producers searching for rare earth metals in North America are in demand as never before and are to be heavily subsidized financially by the current government. The largest rare earth metal producer, Lynas Rare Earth, is benefiting tremendously from this booming industry's development. The share price has increased tenfold since the low last year.

Opportunity from the second row

Defense Metals, a Canadian rare earth metals exploration Company, is another player on the verge of a breakthrough with its Wicheeda project. In early March, the Company reported extremely positive results from hydrometallurgical testing of flotation concentrate in advance of the pilot study with a high rate of impurity precipitation with minimal rare earth loss. Next on the schedule is the completion of the hydrometallurgical pilot plant before a drill program is scheduled to commence in the third quarter to further upgrade and increase the size of the deposit.

Based on the extremely positive results and the project's good infrastructure, Defense Metals should advance as one of the most important players in North America. Defense Metals is already well known to politicians. This week, the US Embassy invited the Company to participate in the Select USA Investment Summit. At the Summit, Canadians will have the opportunity to meet global investors and connect with US economic developers and service providers who can offer advice regarding a potential growth strategy in the US. Defense Metals is currently valued at less than EUR 20 million. Industry neighbor, USA Rare Earth, is to be listed on the stock exchange with a valuation of USD 1 billion.

BP turns blue

With BP foreseeing the end of the oil age, the Group is looking for an alternative. At "Power Day," it discussed with Volkswagen the expansion of its public sales network for electric vehicles across Europe. The goal is also to install 18,000 new fast-charging points in attractive locations by 2025. Now the former oil multinational is planning to build the UK's largest hydrogen project. BP announced developing plans for the UK's largest blue hydrogen production plant, aiming for 1 GW of hydrogen production by 2030. The project would capture up to 2 million tons of carbon dioxide (CO2) per year and send it on for storage, equivalent to the emissions from heating 1 million British homes.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

15. April 2021 | 07:33 CET | by Mario Hose

SunMirror, 88 Energy, Gazprom - Commodity prices pick up

  • Commodities

US oil reserves are shrinking, and at the same time, demand forecasts are being revised upward by OPEC and the International Energy Agency. The reason for this is the assumption that the Corona pandemic will calm down in the current year and will ultimately lead to an increase in global oil demand.
In general, commodity prices are picking up on the expectation of an economic recovery. Thus, gold has also left the lows of 2 weeks ago and is currently struggling to break the critical USD 1,750 mark. The first attempt was rejected.

Read

15. April 2021 | 07:09 CET | by Carsten Mainitz

K+S, SKRR, Klöckner Co. - Where are the missing puzzle pieces?

  • Commodities

Cyclical investments have the advantage of a certain predictability. Nevertheless, each new chapter and the corresponding script differs, sometimes only slightly, sometimes quite significantly. As far as the cyclicality of commodities is concerned, very diverse categories exist within the asset class so that favorable entry opportunities lurk almost at any time. We have brought you a colorful bouquet of commodities, including potash, gold and steel. Which share is ahead?

Read

13. April 2021 | 08:45 CET | by Mario Hose

Barrick, BP, Scottie Resources - Commodities cannot be printed

  • Commodities

Last week was dominated by FED Chairman Jerome Powell's speech at the IMF. Powell reiterated that inflation, which had been a concern for some investors in the short term, was under control and not a cause for concern. He attributed inflationary pressures primarily to higher commodity prices. After all, you cannot print commodities - unlike paper money. For this reason, we will take a look at commodity stocks today.

Read