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September 23rd, 2021 | 12:29 CEST

BYD, Nel, Defense Metals: In which direction is it going?

  • RareEarths
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After the significant setback on Monday, the stock markets are looking for a direction. Individual stocks have held up well in recent days. Among these is Nel. The hydrogen specialist was even able to gain on Monday. That was not the case with BYD, but the shares of the Chinese car manufacturer are holding up surprisingly well given the crisis surrounding the Evergrande real estate group and the regulatory fury of the Chinese government. In addition, there are positive reports from the Company. Defense Metals also has positive news to report. Initial drilling results exceed expectations. All three shares are benefiting from the trend towards alternative drives.

time to read: 2 minutes | Author: Fabian Lorenz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , NEL ASA NK-_20 | NO0010081235 , DEFENSE METALS CORP. | CA2446331035

Table of contents:

    Defense Metals: First drilling results exceed expectations

    Rare earths are present in almost all new technologies, such as smartphones and electric cars. Demand is correspondingly high. In addition, nearly all mining areas are located in China. Therefore, the strategic interest in deposits outside China is exceptionally high. Defense Metals owns proven rare earths - and beyond that, diamonds - at its 17 sq km Wicheeda Rare Earth Project. Now the Company has given an update on the current drill intercept. And it is positive. The program is progressing on schedule and is currently in its 4th hole, with over 750 meters drilled to date. Drill hole WI21-33 (350az/-80o) was used to explore the northern zone of the rare earth deposit. There, visible rare earth mineralized carbonatite was encountered to a depth of 220 meters. It confirms that the extension of the Wicheeda rare earth deposit to the north is possible.

    Craig Taylor, CEO of Defense Metals, stated, "Defense Metals is extremely pleased that not only are we making steady progress towards completing our 2021 resource expansion and delineation drilling program, but that our first hole exceeds our expectations for visual evidence of rare earth mineralization, and is the longest carbonatite intercept drilled on the project to date. It reinforces our belief in the significant expansion potential of the Wicheeda rare earth deposit." The Wicheeda project has Indicated Mineral Resources of 4,890,000 tonnes averaging 3.02% LREO (Light Rare Earth Elements) and Inferred Mineral Resources of 12,100,000 tonnes averaging 2.90% LREO.

    BYD: New models and high demand

    At the Advanced Clean Transportation Expo (ACT Expo) in the US state of California, automakers are showcasing their latest innovations in connected vehicles and alternative powertrains. So is BYD. The Chinese top dog has unveiled two new electric trucks: the Gen 3 8TT and the 6F. Both were designed by former Audi chief designer Wolfgang Josef Egger. The vehicles can be charged with up to 185 kW. BYD is thus expanding its already very broad product range, which includes batteries, cars, buses and trucks. The current models also seem to convince customers. BYD is pleased about the high demand in China. In August 2021, the Company sold 61,400 electric vehicles in its home market. That is an increase of around 290% and thus a fourfold increase compared to the same month last year.

    Nel about to bottom out?

    After the hype at the beginning of the year, hydrogen stocks have been quiet. Yet, the technology remains an essential building block on the road to clean energy production and use. This applies to both the EU and the USA. In the EU alone, the market volume of the hydrogen industry is estimated at around EUR 85 billion in 2030. Norway's Nel ASA, as the world's largest electrolyzer producer, should benefit from this. But in recent months, the share only knew the way down, and the latest quarterly figures were also subdued. But in the recent mini-crash, the Nel share suddenly surprised with relative strength. On Monday, it went up by around 3%. After a breather on Tuesday, the share then stood at around EUR 1.305 on Wednesday - another daily gain of about 3%. A bottoming out could be indicated here.

    Even if the stock markets are currently looking for a direction, BYD and Defense Metals convince with positive news. At Nel, this is a long time coming, but the attempt at bottoming out gives hope. All three companies are active in sectors with attractive long-term prospects.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    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.

    About the author

    Related comments:

    Commented by André Will-Laudien on September 26th, 2022 | 11:36 CEST

    Favorable entries at Kion, Defense Metals, Nordex: The GreenTech rally is coming back soon!

    • Mining
    • RareEarths
    • GreenTech
    • Technology

    The daily analysis of stock market movements may not be an absolute joy for many investors at the moment. Nevertheless, in addition to numerous burdens, there are also bright spots. The warehouse logistics expert Kion is a long-term growth stock available now at 80% below its high. At rare earth explorer Defense Metals, initial drilling is delivering good results. GreenTech stocks JinkoSolar and Nordex should benefit from the boom in alternative energy generation for many years to come. As the saying goes, "Buy when the guns are roaring!" - they have been doing that for seven months now. Is the next rally already lurking around the corner?


    Commented by Nico Popp on September 22nd, 2022 | 13:28 CEST

    Here are the rising prices: Nordex, Defense Metals, JinkoSolar

    • Mining
    • RareEarths

    Recession worries and interest rate fears: experience shows that the market always goes up when sentiment is at its lowest. The first market participants, who have so far always been on the side of the bears, see hope. With the upcoming financial season, new bad news could herald the final sell-off. And then? Which stocks have long-term potential, and who could miss out on a special boom?


    Commented by Stefan Feulner on September 14th, 2022 | 13:55 CEST

    Rheinmetall, Defense Metals, MP Materials - The trend persists

    • Mining
    • Tungsten
    • RareEarths
    • Defense

    And once again, the recently started upward movement on the stock markets is abruptly ended by new inflation data from the US. Consumer prices rose by 8.3% last month, the core rate by 6.3%. The figures were thus once again higher than economists' estimates, making further interest rate hikes more likely. Higher interest rates are a further burden on the economy. In addition, high demand is causing prices for urgently needed raw materials to rise further.