CRASH vs. BUYING OPPORTUNITY? Hensoldt, Standard Lithium and Antimony Resources stock review

Antimony Resources: A commodity gem with potential

In September, we highlighted how China is increasingly leveraging its position as the dominant producer of critical metals. This trend continued in October, with rising tensions between the US and China impacting Europe as well. Western commodity companies like Antimony Resources are benefiting from this. With the Bald Hill project in southern New Brunswick, Canada, Antimony Resources controls a historic antimony deposit with significant potential. The region is considered commodity-friendly: infrastructure connections are in place, drilling is possible year-round, and historical analyses indicate antimony grades of up to 20%.

Last week, the share price exploded from EUR 0.17 to EUR 0.45. The expected correction quickly ended, with the stock now trading at a favorable EUR 0.36. The continued low market capitalization and positive news flow suggest that prices will continue to rise.

This has secured financing for the next exploration phase of the Bald Hill antimony project. Drilling there confirmed high grades of up to 28.76% Sb in individual sections and confirmed a mineralized zone over 700 meters long with an average of 3% to 4% antimony. Previous NI 43-101 reports estimate the potential at 725,000 to 1 million tons of ore containing approximately 30,000 to 40,000 tons of antimony. With the new funds, the Company intends to further delineate the resource and advance the project toward production in order to position itself as a future North American antimony producer.

Antimony is primarily used as a flame retardant in plastics, textiles, and electronics, making materials more resistant to fire. In metallurgy, it serves as an alloy component, for example, to harden lead in batteries, cable sheathing, and solder. Antimony is also gaining strategic importance in the defense and semiconductor industries, where it is used in infrared detectors, semiconductors, and specialized alloys for military applications.

Standard Lithium: Use the price slide to get in?

Standard Lithium's stock has undergone a sharp correction in recent days. The lithium company, which is on the verge of commercialization, took advantage of the rally in recent months and carried out a capital increase. A total of 29,885,057 common shares were placed at a price of USD 4.35 per share through a public offering. The transaction brings Standard Lithium a gross total of USD 130 million. In addition, the banking syndicate may place a further 4,482,758 shares over the next 30 days if demand arises. However, the share price is now trading below USD 4.30, which is also below the issue price of the new shares. The proceeds will be used, among other things, to finance investments in lithium projects in Arkansas and Texas.

The slide in the share price and the dilution caused by the new shares should not be overestimated. At least, that is the view of analysts at Canaccord. The experts adjusted their valuation model to reflect the capital increase and confirmed their "Speculative Buy" rating. The target price for Standard Lithium shares was raised from CAD 5 to CAD 7.50.

Hensoldt: 700% price gain not enough?

Hensoldt shares have lost surprisingly little in the recent correction in defense stocks. Profit-taking would be understandable for a stock that has almost tripled in value this year. Since Russia's invasion of Ukraine, the share price has risen by as much as 700%.

The stock is currently trading around the EUR 100 mark, which is pretty much in line with the average analyst price target. Accordingly, most analysts currently recommend holding Hensoldt shares. Deutsche Bank is somewhat more optimistic. Ahead of the quarterly figures expected on November 7, they reaffirmed their "Buy" rating and raised the price target slightly from EUR 111 to EUR 112. The Company is expected to report growth across all operational levels and in order intake.

Investors should keep a close eye on order intake in particular. With a market capitalization of approximately EUR 11.6 billion, growth will soon need to exceed the low double-digit rates projected by analysts; otherwise, the share price could face a sharper correction.

Standard Lithium is entering a very exciting phase, with commercialization on the horizon. Reasons to buy Antimony Resourcesinclude the fact that there are few antimony plays on the market, its valuation still appears low, and China largely controls the supply of this critical metal. For Hensoldt, order intake will need to increase significantly to justify further stock price gains.