Crash at DroneShield! Almonty Industries ensures raw material security, and RENK Group reports quarterly figures

DroneShield – Is the crash justified?

What a crash! Just a few months ago, DroneShield was the darling of investors – now the mood is gloomy. The Australian drone defense specialist took its shareholders on a wild ride that ended with a rude awakening. This was mainly due to home-grown problems. Management reported old contracts as new business and issued 44 million employee options, which diluted the stock. A classic case of "shooting yourself in the foot." The stock market forgives a lot, but not trickery.

The technology itself is sound. DroneShield builds innovative systems that use AI to detect and disable drones, from handheld devices to large-scale systems for airports. The products work and are being bought. Governments around the world are looking for solutions to the growing drone threat, and DroneShield is providing them. The product range is broad, from portable individual devices for security forces to permanently installed large-scale systems for protecting critical infrastructure. Technologically, the Company is in a good position and is considered competitive in its segment.

Operationally, things are actually going well. The order situation is developing magnificently, with orders exploding and doubling on average. To keep pace with this demand, the Company is ramping up production significantly. Those are solid figures. The operational development speaks for itself – but investor confidence must first be regained. If management gets its communication under control, the tide could quickly turn. The stock is currently trading at AUD 2.25.

Almonty Industries – Expanding tungsten supply for the West

As dependence on critical raw materials from geopolitical hotspots becomes an increasing risk, Almonty Industries is positioning itself as a key alternative supplier. Tungsten may not be widely known, but it is indispensable, especially for modern weapons and high-tech electronics. The problem is that almost all tungsten still comes from China. Almonty Industries wants to change that and is serious about doing so. The Company is working on several fronts. In Portugal, the proven Panasqueira mine is to be expanded. Currently, around EUR 2.5 million is being invested in a new drilling program designed to determine the mining plan for the next phase of growth. An additional production level is intended to boost output and significantly extend the mine's life. This will secure the Company's existing base for the time being.

However, the real ace up its sleeve lies in South Korea. The Sangdong mine is virtually complete and is set to take over a significant share of the Western world's tungsten supply. Construction work is nearly finished, and the crucial commissioning phase is now underway. Once Sangdong is running at full capacity, it is expected to account for a substantial portion of global tungsten production outside China. At the same time, the Company recently secured another promising project in Montana, which could begin production as early as 2026, as the previous owner has already completed much of the groundwork.

All of this demonstrates how important it is for Almonty to continue diversifying. The Company does not want to put all its eggs in one basket. With the mine in Portugal already in production, Europe is covered, and mines in South Korea and the US will soon be added, which will primarily satisfy the tungsten demand of Western countries. This makes the Company independent of the whims of individual countries. This multi-hub strategy significantly reduces country-specific risk and gradually creates a robust supply chain. China may still dominate the market at the moment, but those days could soon be over. Through a combination of inventory expansion, world-class assets such as Sangdong, and strategic acquisitions in friendly nations, the West is becoming less dependent on Chinese supplies. The stock is currently trading at USD 6.95 on the NASDAQ.

RENK Group - Continuing its robust growth course

While other defense companies are still considering where to go, RENK is already reaping the rewards. A 19% increase in revenue in the first nine months and a rise in operating profit of more than a quarter – these are impressive figures. Profitability is noticeably on the rise. The EBIT margin now stands at an impressive 15.2%. As expected, this growth is being driven by the ongoing defense boom, which shows no signs of slowing down. The momentum is even increasing as more and more European countries ramp up their defense spending.

RENK has a full order book worth EUR 6.4 billion for the next five years. This level of planning security is rare in the industry and gives RENK an enormous strategic advantage. The order pipeline remains well filled, providing a solid foundation for continued growth. The military vehicle business is particularly strong. The Vehicle Mobility Solutions segment saw a 25% increase in sales and an EBIT margin exceeding 18%. The Marine & Industry division also grew significantly, with EBIT growth of 35%.

Only the Slide Bearings division is struggling, but that is acceptable when the rest is doing so well. The challenging market environment in this area is putting pressure on earnings and margins, but it also highlights how strongly RENK is now supported by the defense segment. RENK is benefiting from the fact that Europe's armies are finally getting serious about rearmament. Whether it is gearboxes, drives, or propellers, many weapon systems simply cannot function without RENK's technology. This unique market position is now paying off in full, and there is no end in sight to the boom. The stock is benefiting from the quarterly figures and currently costs EUR 66.91.

Europe's rearmament has two sides – opportunities and fundamental dependencies. DroneShield must work hard to regain lost investor confidence after home-grown communication mishaps and share price losses. Almonty Industries, on the other hand, is systematically building up an independent tungsten supply for the West, making it strategically indispensable. The RENK Group, in turn, is demonstrating with robust quarterly figures and a bulging order book how operational excellence pays off in a booming industry. For investors, it is clear that it is not the large defense budget alone that counts, but specific technological leadership and strategic foresight in the supply chain.