23. September 2021 | 12:29 CET
BYD, Nel, Defense Metals: In which direction is it going?
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:
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , NEL ASA NK-_20 | NO0010081235 , DEFENSE METALS CORP. | CA2446331035
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.