China's antimony ban! Antimony Resources the winner in this crisis – next raw materials alert for Rheinmetall and the RENK Group!

Antimony Resources – North America's new hope for antimony

Canadian exploration company Antimony Resources is targeting a market that is in shock: antimony. Since China imposed export restrictions last fall, there has been a global shortage of antimony. Since then, the price of antimony has reacted with price jumps not seen in 40 years. The raw material is indispensable for flame retardants, military technology, and semiconductors. With the renaming in March 2025, previously the Company was called Big Red Mining Corp., management is clearly signaling its strategy. It aims to become a leading antimony supplier outside China. The timing is ideal, as Beijing controls around 70% of global production, and alternatives are being sought worldwide. It is no coincidence that antimony is on the list of critical raw materials in Europe and the US.

The focus is on the Bald Hill project in New Brunswick. Historical data indicates 725,000 to 1 million tonnes of ore with a remarkable 4-5% antimony content. The 2,500-meter drilling campaign, which has been underway since mid-April, confirms the potential. Visible antimony mineral was found in 80% of the drill holes, including a 20-meter zone. Surface samples show mineralization over a length of 300 meters – with room for expansion. Previous highlights, such as 20.9% over 2.29 meters and 11.7% antimony over 4.5 meters, highlight the quality. To date, 1,600 meters of the drilling program have been completed. In early June, the Company expanded the property by 650 hectares. This covers additional promising zones based on historical exploration data.

To maintain momentum, the Company secured CAD 318,100 in June through a private placement at CAD 0.08 per share. The funds will be used directly for exploration and resource expansion at Bald Hill. At the same time, the Company has secured the option right to a second project called Antimony 2.0 in New Brunswick. The goal is to complete an initial resource estimate by the end of 2025. This will attract industrial buyers who are desperately seeking independent sources of antimony. For risk-tolerant commodity investors, this presents an exciting leveraged opportunity. The stock is currently trading at CAD 0.105.

Rheinmetall – Robust in the defense boom, but antimony poses risks

For Rheinmetall, antimony is not an exotic metal but a raw material vital for warfare. It gives ammunition hardness and precision, which is essential for projectiles and armor-piercing systems. However, the supply situation is alarming. China, the leading global supplier, recently cut its exports by almost 97%. The result? Antimony prices have nearly tripled within a year. This shortage directly affects Rheinmetall's core products. Although there are no public production losses, the extreme price dynamics and dependence on Chinese sources are increasing costs and weighing on margins. Investors should keep an eye on these material risks.

Rheinmetall presented record figures for 2024. Revenues jumped by 36% to EUR 9.75 billion, while operating profit rose by as much as 61% to EUR 1.48 billion. Operating cash flow of EUR 1.05 billion exceeded all expectations. The high order backlog of EUR 55 billion secures capacity utilization in the long term. For 2025, the Company is aiming for a revenue increase of 25-30% with a stable margin of around 15.5%. At the same time, Rheinmetall is building strategic alliances. Together with US tech company Anduril, it is developing autonomous drones such as "Barracuda" and "Fury" for Europe. A partnership with INERATEC focuses on synthetic fuels for defense logistics.

The defense boom in Europe remains the key growth driver. NATO commitments, such as the 2% target for economic output and massive EU investment programs of up to EUR 500 billion by 2030, are creating lasting demand. Rheinmetall is benefiting particularly from its strong position in land systems and ammunition. Projects like the new KF51 Panther battle tank and the Main Ground Combat System with KNDS highlight the Company's innovative strength. The planned spin-off of the civilian automotive business will further sharpen the focus. The digitalization and automation of military systems play into Rheinmetall's hands. The challenge remains to keep supply chains – particularly for critical raw materials – resilient. The share price is currently priced at EUR 1,746.50.

RENK Group – Growth, raw material risks, and strategic direction

Antimony is not a niche topic for RENK. The specialist in high-performance transmissions and tank drives relies on the metalloid for wear-resistant alloys used in critical components. Whether in plain bearings or transmission parts, without antimony, durability declines. The situation is tense due to China's export restrictions, which are putting pressure on the supply chain. Although Rheinmetall is hit even harder due to its broader range of high-tech products, RENK must also diversify its suppliers and explore alternative materials. Supply risks remain a real cost driver.

Beyond the concerns about raw materials, RENK is delivering convincing figures. With an order backlog of EUR 5.5 billion and a 23% jump in revenue to EUR 1.1 billion last year, the Company is showing strong demand. All segments grew, led by Vehicle Mobility Solutions, with a 32% increase in revenue. Adjusted EBIT climbed disproportionately to EUR 189 million. Although these fundamentals do not justify the extreme stock market volatility of recent months, they underscore the Company's market position. The planned dividend of EUR 0.42 per share should please shareholders.

RENK is planning for the future. Expansion into key markets such as India and the US is establishing a local presence. Innovations in hybrid drives and electrification, driven by partnerships, are addressing military and civilian trends. Continued high defense budgets worldwide are providing strong tailwinds. However, challenges remain, such as net debt and the high price-to-earnings ratio. To justify the latter, growth must remain consistently high. The share price has been moving sideways since June 10 and is currently trading at EUR 69.59.

China's antimony export ban exposes the West's critical dependence on raw materials and poses a strategic risk to military power and high-tech industries. With ambitious exploration in Canada and fresh capital, Antimony Resources is positioning itself as a promising new supplier outside China and is benefiting directly from the market shortage. Rheinmetall is showing robust defense records and long-term order security, but has to contend with cost pressure and supply risks due to skyrocketing antimony prices. The RENK Group is demonstrating strong operating growth and benefiting from global defense budgets, but must also manage the strained antimony supply chain to secure the production of critical high-performance components. The crisis underscores the systemic vulnerability of Western industries.