CAUTION with Nordex and thyssenkrupp! ENTRY OPPORTUNITY with Power Metallic Mines!

Power Metallic Mines: CEO expects share price to rise

In an increasingly AI-driven world, raw materials are playing an even more central role as they form the physical basis for digital innovations. High-performance computers, cloud infrastructures, and billions of sensors require rare earths, copper, lithium, and other metals, without which neither semiconductors, memory, nor batteries could be manufactured. At the same time, the energy requirements of data centers are rising rapidly, fueling demand for fossil fuels in the short term and for renewable raw materials such as silicon, cobalt, and nickel in the long term. This makes raw materials not only an industrial factor, but also a geopolitical one: those who have access to secure supply chains and sources of supply will determine the pace and scope of technological progress.

To profit from the hunger for raw materials, the shares of Power Metallic Mines currently offer an exciting entry opportunity. The consolidation of recent months should soon be over, as important exploration results are due again in the fall and winter. This could repeat the development of the previous year. Between November and February, the stock, which was still trading under the name Power Nickel at the time, more than doubled. This was due to spectacular drilling results that turned the nickel project in Canada into a world-class multi-metal project.

Drilling activities are currently being significantly expanded within this world-class multi-metal project. Using state-of-the-art surveying techniques, several thousand meters of drilling are to be carried out across multiple target zones. In the current exploration campaign, the Company is focusing on the Nisk Lion-Tiger area, which hosts high-grade gold, silver, and copper mineralization, among other elements.

Accordingly, investors can look forward to a lively news flow in the coming months. To return to its all-time high from February, the share price would have to rise by almost 50% - a target that seems well within reach given the Company's operational progress.

Nordex: Is there a threat from Trump and Merz?

The Nordex share is one of the surprises of the current year. The security has already gained around 70% in 2025. Recently, however, the share has corrected. This is because political risks are increasingly worrying investors. Will Merz and Trump's business be slowed down?

The German wind power market is currently caught between ambitious expansion targets and political uncertainties. Chancellor Friedrich Merz recently signaled his intention to make the pace of wind power expansion more realistic, which has triggered concerns about a slowdown in industry. Onshore wind power, long the backbone of the energy transition, is particularly in the spotlight. mwb research emphasizes that although the discussions about the slower expansion of wind power in Germany are causing uncertainty, the outlook for the onshore sector remains positive. In 2024, installed capacity rose by 3.25 GW to around 63.5 GW despite regulatory hurdles. Even if the official expansion targets of 10 GW per year are revised downward, the market remains attractive according to the analysis firm. Nordex is ideally positioned with a market share of 32% and could still win orders of just under 2 GW in a realistic scenario of 6 GW of new capacity per year. In addition to the project business, the high-margin service business is highlighted as an increasingly important growth driver.

In the US, political headwinds are even stronger. Under Donald Trump's presidency, there is a threat that support programs and subsidies for renewable energies will be called into question or delayed. This would be problematic because the recent boom in the US has been strongly driven by government support, in particular the Inflation Reduction Act (IRA). If Trump were to slow down this policy, the market ramp-up could be significantly slower. For Nordex, this would mean less momentum in new business, longer project cycles, and greater dependence on the European home market. On the other hand, mwb research emphasizes that the fundamental competitiveness of onshore wind power remains high – even without massive government support. The technology is competitive in terms of cost compared to fossil fuels, which somewhat cushions the risks. However, Trump does not seem to care about this. This could become a risk, as the market is expected to contribute significantly to Nordex's growth from 2025 onwards.

The analysts at mwb research nevertheless recommend buying Nordex shares. The experts see the fair value of the share at EUR 26. The Company is performing strongly in operational terms. The order backlog at mid-2025 stood at EUR 14.3 billion, an increase of over 30% compared to the previous year. In the second quarter alone, Nordex recorded 2.3 GW of new orders – an increase of 82% year-on-year. For 2025, mwb research expects revenue of EUR 7.8 billion and net profit of EUR 168 million. By 2027, revenues are expected to rise to over EUR 9 billion and profits to EUR 300 million.

thyssenkrupp: Threat from Rheinmetall?

thyssenkrupp is pushing ahead with the planned IPO of its naval division TKMS: Following approval by the Annual General Meeting, the spin-off is set to launch on the Frankfurt Stock Exchange in fall 2025. thyssenkrupp intends to retain a 51% stake, with the remaining 49% to be distributed to shareholders. With this move, the Company is responding to the defense boom and the continued high demand for submarines and naval vessels. Investors are hoping the spin-off will lead to a more transparent corporate structure and enable the naval division to be valued independently.

TKMS's order books are well filled: With a portfolio of around EUR 18 billion, the division enjoys long-term planning security. New submarine orders have recently been added, including for Singapore, as well as the contract to build the new German research icebreaker "Polarstern II." The international 212CD program is also ensuring high capacity utilization. These projects underscore that TKMS is entering the market at a highly favorable moment with its IPO.

But competition is growing: Rheinmetall is making a massive entry into shipbuilding with the acquisition of Lürssen's naval division NVL. This creates a new competitor that will be able to offer not only weapons and electronics, but also complete warships in the future. For TKMS, this means additional pressure in the European naval business. At the same time, the intensified competition could increase investor interest in the planned IPO, as the division can impressively demonstrate its strategic importance and its full order backlog.

Power Metallic Mines currently offers an exciting entry opportunity. Numerous drilling results are expected in the coming months. If these are positive, significantly higher prices are possible. In contrast, investors in Nordex should at least consider taking profits. In any case, political risks are increasing. The IPO of TKMS is approaching, meaning that thyssenkrupp is once again selling off more of its family silver.