19. August 2021 | 12:13 CET
Conico, First Majestic Silver, VW - This moves the prices!
The stock markets are trading near their all-time highs. The high inflation rates cause only selective worries. The crisis currency gold is in waiting mode. The economy is recovering, but some sectors are still experiencing supply bottlenecks, which in some cases are severely disrupting activity. In this mixed situation, which stocks are worth a closer look?
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ISIN: FIRST MAJESTIC SILVER | CA32076V1031 , VOLKSWAGEN AG VZO O.N. | DE0007664039 , Conico LTD | AU000000CNJ3
CONICO LTD - When will the share price ignite?
The Australians are active as a mineral exploration company in several regions of the world. The portfolio includes an interest in the Mt Thirsty cobalt-nickel-oxide deposit, located about 20 km northwest of Norseman in Western Australia. In addition to the cobalt-nickel-oxide deposit, the 17 sq km project also hosts nickel-sulfide mineralization.
In addition, the companies are active with the Ryberg and Mestersvig projects in East Greenland. The Ryberg project covers 4,521 sq km and includes the Sortekap gold deposit and a copper-nickel-cobalt-platinum group element gold deposit with magmatic sulfides. The Mestersvig project consists of the Blyklippen lead-zinc mine and the Sortebjerg lead-zinc deposit.
Currently, the Ryberg multi-element project has come into the focus of investors. Aeromagnetic-radiometric surveys of the license area have been fully completed and have identified several promising areas, some of which will be explored by drilling in the coming weeks. The area consists of two granted mineral exploration licenses and showed surface samples grading up to 2.2% Cu, 0.8% Ni, 0.1% Co, 3.3 g/t Pd and 0.2 g/t Au.
The recent initial drilling underpinned the potential and scale of the project. The 236.7 m hole was aimed to confirm an IP anomaly documented in 2020. This objective was achieved with the detection of sulphide mineralization at the target depth. The second hole has commenced 350 m south of the first hole location, also targeting confirmation of the IP anomaly. With further positive results, the potential of the Ryberg multi-element project should be increasingly reflected in the share price. Currently, the Company is valued at AUD 62 million.
FIRST MAJESTIC SILVER CORP - Good Q2 figures
A few days ago, the Canadians published half-year figures. Improved production rates and higher metal prices led to record second-quarter revenues of USD 154.1 million. The figures include the acquired US gold mine Jerritt Canyon data, which significantly impacted the quarterly statement.
Operating income generated from mine operations turned from a loss of USD 7.8 million a year earlier to a gain of USD 29.4 million. Net income was USD 15.6 million, or USD 0.06 per share, in Q2, up from a loss of USD 10.0 million, or -USD 0.05.
Shareholders are benefiting from the Company's success in the form of a 33% dividend increase, which stands at USD 0.006 per share. The Canadians have a comfortable balance of cash and cash equivalents, which amounted to USD 227.1 million as of June 30. Currently, operational improvements are ongoing at the Jerritt Canyon Mine. These investments will impact the upcoming Q3 data. After that, operating costs will return to normal levels.
VOLKSWAGEN AG VZ - Chip shortage severely dampens growth
The impact of the chip shortage on the automotive sector is becoming increasingly noticeable and led to a significant dampening of VW's global sales figures in July. Last month, the two largest markets, China and Western Europe caused a year-on-year decline of almost 20% to 720,200 vehicles delivered. Still, the Wolfsburg-based Company is up nearly a fifth on last year's weak corona-related figure for the current year.
The shortage of semiconductors is leading to restrictions on the ability to deliver several entry-level models. The basic variant of the ID 3 electric vehicle is affected, as is the VW Golf. In addition, some Volkswagen brands will raise prices from September 1. The preferred share has meanwhile dipped below the EUR 200 mark.
The shares mentioned are very different for several reasons. VW investors are betting on an established blue-chip and a quick clearing of the semiconductor bottlenecks. With First Majestic Silver and Conico, investors invest in the commodities sector's different areas and lifecycle phases. First Majestic Silver is a profit driver of rising precious metal prices. Conico, which is still comparatively young, has several arrows in its quiver. The Ryberg multi-element project in Greenland could boost the share price if further positive news and progress are made.