Buy recommendation for Nel ASA! Troubles at BYD! Globex Mining share has arrived in the gold rush!

Globex Mining: Stock surges!

At long last, Globex Mining's stock is reacting! Four weeks ago, we pointed out that the stock had some catching up to do. Since then, it has risen by almost 30% to EUR 0.73, recovering its losses from the spring. However, there is still room for growth because whether gold, silver, rare earths or hydrogen, the mine incubator from Canada benefits and has also started a share buyback program. Of Globex's approximately 250 projects, around half include the precious metals gold, silver, platinum or palladium. The USP: Globex makes the projects available to other companies and transfers the costs and risks of exploration. In return, Globex receives cash, share options and future royalty payments. This means that Globex is significantly more risk-diversified than other explorers and an interesting alternative to the large commodity companies for investors.

The stock is currently benefiting primarily from the gold and silver projects. The most recent report on the gold project was with Cartier Resources, and new drilling results were published. According to these, 14.7 grams per tonne (g/t) gold (Au) over 4.3 meters (m) was achieved within 5.2 g/t Au over 20.6 m and 15.0 g/t Au over 1 m within 5.7 g/t Au over 4 m. This should have a positive effect on license payments to Globex. However, it is also involved in lithium and benefits from the boom in this raw material, which seems to have turned the corner.

Nel: Production should not be overestimated!

Nel's shares gained around 2.5% yesterday. The hydrogen pioneer's stock is thus continuing to react positively to the previous day's "Buy" recommendation. RBC rates the Nel share as "Outperform". The analysts see the fair value at NOK 12. The Nel share would have to almost triple from its current NOK 4.54 to reach this level. The analysts view the recent funding from the European Union positively. It shows that hydrogen remains a focus of European energy policy.

On Tuesday, Nel reported a grant of up to EUR 135 million from the EU Innovation Fund to support the industrialization of Nel's next-generation pressure-based technology. According to Nel, the technology is currently in the prototype stage, has achieved promising results, and is to be developed to market maturity.

Nel CEO Håkon Volldal commented: "We continue to work on realizing the full potential of our current technology while developing future technologies to help our customers reduce the cost of green hydrogen. This grant will make bringing our new innovative alkaline pressure technology to market significantly easier. With this substantially larger grant from the EU Innovation Fund, we will be able to bring the innovation to market faster." The next step is to build a capacity of 1 to 2 GW per year and then expand it to up to 4 GW. The final investment decision to start capacity building will depend on the successful testing of the current prototype and the planned pilot phase, as well as on the market acceptance of the new technology.

Nevertheless, the funding will not solve NEL's operational problems. NEL needs to acquire more orders; if it loses any, it must finally change course. Only then can the share price rise sustainably.

BYD: Addressing challenges in Europe!

In the medium term, BYD aims to achieve a market share of 5% for electric vehicles and plug-in hybrids in Europe. However, the Company, which has been accustomed to success, is not making as much progress as planned on the way to achieving this goal. This was confirmed by the Company's European Head at the Paris Motor Show. In an interview with "Automobilwoche", Stella Li said: "We are not satisfied with the result. That is why you will see several major changes at BYD in the coming months." Among other things, the dealer network in Europe is to be more than doubled by the end of 2025. In Germany, the expansion of the dealer network is to be even faster. This aligns with the recent acquisition of its distribution partner, Hedin Electric Mobility.

Now, the next step is being taken. BYD wants to deepen its partnership with Forvia. The two companies are already working together on the construction of the BYD factory in Hungary. It has now been agreed that Forvia, which is the seventh largest automotive supplier in the world, will also support BYD in its planned production site in Turkey. The plants in Hungary and Turkey are critical for BYD's success in Europe, as they are not affected by the discussions surrounding punitive tariffs between the EU and China.

Globex Mining not only benefits from the gold and silver rush but also from its risk-diversified business model. The stock has jumped and should be able to maintain its momentum. BYD continues to go full speed ahead in Europe, causing more than just headaches for local manufacturers. Even if it does not make as much progress as planned, BYD should have sufficient financial resources. The funding shows that politicians are not abandoning hydrogen. However, Nel is no longer one of the investor darlings in the sector and needs to prove that it can build a profitable business model.