CDU wins, and the stock market celebrates! Caution with Nel ASA, First Nordic Metals, Xiaomi, and Agnico Eagle

Gold – Winner of global currency devaluation

In times of economic uncertainty and rising inflation, gold repeatedly becomes the focus of investors. It has the reputation of being one of the oldest stores of value in human history, as it is considered a safe haven and stable protection against currency devaluation. But what makes gold so valuable? Unlike paper money, gold cannot be artificially produced or multiplied indefinitely. Global gold production is growing only slowly, and existing mines are constantly looking for new properties to extend their lifetimes. Precious metals such as gold, silver, platinum, and palladium have been considered safe havens for centuries and retain their value even in times of crisis. One point is repeatedly emphasized in the global financial bubble: unlike stocks or bonds, there is no issuer risk with physical gold – it cannot go bankrupt. Yesterday, the gold price reached a new all-time high of USD 2,956. Where should one invest now?

First Nordic Metals Corp. – With Agnico's Help to a Gold Blockbuster

Agnico Eagle is a leading gold company that impresses with a combination of strategic growth, risk minimization, and efficiency. Most of its mines are located in stable regions such as Canada, Finland, and Australia. This allows Agnico Eagle to minimize political and regulatory risks often arising in other countries. Not far from Agnico's properties in Sweden, we come across the Canadian explorer First Nordic Metals (FNM), which emerged from Barsele Minerals. The Canadian company's main projects are located in the mining region of Västerbottens Län in northern Sweden, 600 km north of Stockholm, and cover a total of 104,000 hectares with a total length of about 100 km. The flagship Barsele project is located at the western end of the Proterozoic Skellefte trend, a prolific belt of volcanogenic massive sulfide deposits that overlaps with the "Gold Line" in northern Sweden. This project has long been structured as a joint venture, with ownership stakes of 55% for Agnico Eagle and 45% for FNM. It spans nearly 25,000 hectares, and 165,000 meters have been drilled so far, with funding of USD 55 million from Agnico.

The new management under President Adam Cegielski and CEO Taj Singh expects large mineralizations in the unexplored zones. What has not yet been included in the valuation, with a market value of almost CAD 135 million, are the projects in Paubacken, Storjuktan, and Klippen. In addition, there is the huge Oijärvi project in Finland, which has only been explored to a depth of 215 meters. Diamond drilling has now commenced on the high-priority Aida target at the Paubacken project in Vasterbotten County in northern Sweden. The exploration target is approximately 40 km south of the resource-rich Barsele project. Aida is located approximately 4 km north of the operating Svartliden mill, which is currently processing ore from Sweden's newest gold mine, Fabodtjarn.

First Nordic plans to conduct 5,150 meters of diamond drilling in the first quarter on the Aida target area with up to two diamond drilling rigs. One drill rig is currently in operation and is operated by Finland-based Comadev Oy. A total of 24 diamond drill holes are planned to test over 3 km of the identified structural corridor. Based on the success of the first quarter drill program, First Nordic expects an additional 5,000 to 10,000 meters of drilling to be carried out at Aida in 2025, for which it is already fully financed.

Taj Singh, CEO of First Nordic commented, "It is an exciting time in the Gold Line Belt. At Aida, we are now embarking on the most extensive diamond drilling program ever conducted in the Gold Line Belt outside of our Barsele project." The Aida drilling program in Q1-2025 has been designed to build on the known mineralization and collect samples over a strike length of 3 km to explore the mineralization's size, geometry, and structural control within the shear corridor. The Company currently has sufficient funds in the treasury, and a planned listing on Nasdaq North in Sweden is to be followed by an expansion of the investor base. Due to the good news flow, FNM shares have doubled from CAD 0.30 to CAD 0.60 in the last 3 months, but the Company is likely to have some more good news in store. With the upcoming drill results, the revaluation should continue rapidly.

First Nordic Metals will be presented at the 14th International Investment Forum by President Adam Cegielski and CEO Taj Singh today, February 25, 2025. This story is a hot topic. Free registration under this link.

Nel ASA and Xiaomi – Two Worlds

We would like to provide a technical note for the much-publicized Nel ASA stock. After 3 years of downturn, the share price has now lost 84% of its value. A restructuring program is currently underway to compensate for the decline in orders in the Greentech sector. Tomorrow, February 26, CEO Hakon Volldal will report on the year 2024 and, at the same time, provide an outlook for 2025. Analysts expect a loss per share of NOK 0.0469 for Q4, with full-year revenue of NOK 1.53 billion. This leaves a full-year loss per share of NOK 0.17. Due to the high level of uncertainty, it is advisable to wait at this point until the first positive data emerges. The Company is not expected to turn a profit before 2028. Very speculative!

The situation at Xiaomi is diametrically opposed. The Chinese tech giant has gained a full 300% in one year. All business areas are running smoothly, and the Company is also doing great business in Europe. The 2024 annual figures are expected on March 18. Earnings per share are expected to be around CNY 0.2354. Xiaomi is growing at a constant 20% in revenue and currently has a P/E ratio of only 18.9 for 2025. The telecom giant has quintupled its valuation in the last 3 years to around EUR 158 billion. Investors should tighten their stop-losses and even consider selling before the figures if necessary, as the stock has already posted a 200% gain since mid-2024. The climate under Donald Trump could quickly become frostier if the US-China trade war reignites.

Germany has voted. For the next 4 years, a black-red coalition is set for the time being. We can only hope that the most pressing issues will be addressed, but it could also end in gridlock. Positive movements can be seen at Agnico-Eagle, First Nordic, and Xiaomi. Nel ASA will likely have to undergo a tough restructuring first to adjust to the lower demand for electrolysers.