BYD, Globex Mining, First Hydrogen - Breakthrough results

First Hydrogen - Better than expected

Sixteen major fleet operators from various sectors, such as food and express delivery companies, utilities and breakdown services, applied to the British "Aggregated Hydrogen Freight Consortium" to participate in tests of First Hydrogen's hydrogen-powered light commercial vehicles under real road conditions. First up was Rivus, a UK fleet management provider with around 500 customers under contract and responsible for managing over 120,000 light commercial vehicles (LCVs) and trucks annually. Test drivers praised the smooth running and pleasant handling of First Hydrogen's Generation I vehicles.

With 6,000 km covered so far in urban areas and on motorways, the van achieved ranges of over 500 km. The fuel consumption of First Hydrogen's LCV is below 2 kg/100 km in many driving scenarios and even below 1.5 kg/100 km in urban traffic. It should also be emphasized that the hydrogen-powered commercial vehicles can be refuelled much faster than battery-electric units. If further tests are similarly positive, several fleet companies are likely to be among the potential buyers of the First Hydrogen Vans when they are ready for the market.

After a price loss of more than 50% since the beginning of the year due to the weakness in the hydrogen sector, the First Hydrogen share was able to hold important support zones and is now turning upwards again at EUR 1.95. The share price is getting tailwind from rising indicators. First Hydrogen will present at the virtual IIF 1st Hydrogen Day on June 15, 2023.

Globex Mining - Consistently positive cash flow

Due to the increasing demand from the renewable energy and electromobility sectors, the demand for industrial metals will rise dramatically in the coming years. However, demand already exceeds the underlying supply, so price increases for copper, nickel, lithium, and others will likely be inevitable in the long term. The beneficiaries of these super-cycles are undoubtedly the producers or exploration companies of these scarce commodities. However, it is difficult for private investors to filter out the right companies from the respective commodity stocks. An alternative and a unique selling point in the business model is offered by the Canadian mining company Globex Mining.

The market capitalization of the debt-free incubator is CAD 41.92 million. In comparison, the cash balance and the saleable investments amount to more than CAD 21 million. These holdings include around CAD 2.1 million in Pan American Silver, CAD 1.7 million in Agnico Eagle and CAD 3.7 million in Electric Royalties. In the first quarter, Globex Mining generated net revenues of CAD 543,800. This can be explained by the unique business model of the portfolio managed by Jack Stoch.

A total of 219 projects are in the diversified portfolio, including precious metals such as gold, silver, palladium and platinum, as well as base metals such as copper, zinc, lead and nickel, special metals and minerals such as iron, molybdenum, lithium and rare earth metals. With 44 projects, Globex Mining participates directly in the energy transition, as critical metals and minerals such as iron, rare earths, uranium, lithium and cobalt are stored here. Globex Mining generates revenue by optioning land packages from its inventory in exchange for cash and shares. In this way, the Company receives recurring royalties and the exploration risk is assumed by the partner. In addition to acquiring and licensing properties, the Company also invests about CAD 1.5 million per year in the exploration of its properties.

The most recent example is the signing of a letter of intent with Burin Gold Corp. to acquire a 100% interest in the Dalhousie nickel-copper-cobalt project, which comprises 31 claims and is hosted in Quebec. Under the terms of the agreement, Burin will pay CAD 1.5 million and issue 4 million Burin shares to Globex. For 100% of the interest to pass to Burin, exploration work worth CAD 5 million will also be carried out over a 4-year period. After that, Globex Mining will retain a 3% gross metal royalty on all payable metals, subject to a 1% buy-back for CAD 1 million, payable at any time.

The correction in base prices for industrial metals has seen the stock lose about 20% of its value since mid-April, but it is still trading above the uptrend established in October last year at CAD 0.76.

BYD - The trend holds

The sales figures for the month of May reflect the positive trend at the Shenzhen-based company. There was a nearly 100% increase in units sold compared to the same period last year. A total of 240,220 units of BYD automobiles were sold, setting a new monthly record. The highest sales recorded date back to last December, with 23,197 units. On an annual basis, the Warren Buffett-funded company broke the 1 million barrier. For 2023, BYD expects to sell between 3 and 3.6 million cars.

In the battery-powered truck segment, too, the signs continue to point to expansion. A cooperation agreement was signed with the automotive supplier for Central and Eastern Europe, Inter Cars S.A., during the EV Experience in Poland. BYD's goal is to sell electric vehicles for commercial purposes in Poland. In doing so, the Polish sales network of the Chinese technology company is to be expanded to a total of 5 locations by the end of the current business year.

First Hydrogen performed better than forecast in its first test drives under real road conditions. BYD's trend in sales figures continues to point strongly upwards. Globex Mining's broad diversification makes it a potential basic investment for any portfolio as metal prices rise.