D-Wave, Rheinmetall, First Phosphate: Stocks with 100% or more potential!

First Phosphate: Prospect of billions in NPV with a market capitalization of CAD 33 million

A cash flow of CAD 700 million beckons for First Phosphate within just three years according to the PEA. This strong result was revealed on Friday by the preliminary economic assessment (PEA) for the Bégin-Lamarche phosphate project in Quebec, Canada. This means that the investments will have already been fully amortized in this short period after construction. For context, experts estimate the total mine lifetime to be 23 years, and the Company's market capitalization is currently a modest CAD 33 million. Accordingly, First Phosphate could stand to make billions from the sale of the critical mineral over the life of the mine – which in this case is highly pure – as well as increasing shareholder value, substantial dividends, and takeover speculation. The shares are also traded in Germany; on Friday, they jumped by over 10% to CAD 0.39. This might not be the end of the price rally, as the share was already trading at CAD 1 in 2023, and analysts at Hallgarten Equity Research see a fair value of CAD 1.15. The analyst report was published in October. It was then recently upgraded to CAD 1.15. The price target was raised from CAD 0.70 following the PEA.
While phosphate was known for many years as an agricultural fertilizer, it is now a critical mineral as part of lithium iron phosphate batteries and essential for the energy transition. The market volume of lithium iron phosphate batteries is expected to grow by an average of 17.7% to around USD 70 billion by 2032.
The phosphate from Bégin-Lamarche is in the form of igneous apatite. It is considered to be particularly pure and only 1% of global phosphate production comes from this unique geology. In conjunction with a nearby hydroelectric power plant, short distances to the US, and a deep-sea port, First Phosphate could offer battery producers the purest battery materials and the best from an ESG perspective. In this way, First Phosphate aims to establish a vertical value chain from phosphate to purified phosphoric acid (PPA) and LFP cathode material for use in lithium iron phosphate batteries. To this end, partnerships already exist with, among others, the commodities giant Glencore and the US company GKN Powder Metallurgy. The region's indigenous population was also brought on board at an early stage through cooperation with First Nations.
After the successful PEA, shareholders can expect further positive news flow. The stock market story of First Phosphate is likely to have only just begun, and the analysts' almost 200% upside potential could be the next target. Incidentally, a presentation by CEO John Passalacqua is available on YouTube link).

D-Wave: Who will win the race?

The fact that stocks can rise by 500% within a few months was impressively demonstrated last year by Power Nickel and D-Wave Quantum, among others. Even after the price decline of over 60% within a few days, D-Wave's price performance over the past six months is still an impressive 390%.

But the environment is getting rougher for quantum computing stocks. Following the NVIDIA CEO, Facebook inventor Mark Zuckerberg has also recently expressed skepticism about the short-term potential of the technology. In a conversation with podcaster Joe Rogan, Zuckerberg expressed reservations about the practical applications of quantum computers. The assessment of two of the most influential tech CEOs raises questions among investors as to whether quantum computers are ready to replace artificial intelligence as the next big thing.

There is no doubt that quantum computing is an exciting long-term topic that could revolutionize numerous industries and even shake up Bitcoin due to its decryption capabilities. However, the question is how quickly the hyped specialists will become profitable and whether they can compete with the big tech giants.

Rheinmetall: Off to a flying start in the new year

Like First Phosphate, Rheinmetall's shares have also made a strong start to the new year. As with the Canadian company, positive news flow is also driving the share price of Germany's largest defense company.

The breakthrough of the new Skynex air defence system was recently reported. The Italian army, for example, wants to rely on the Rheinmetall system in the future and has placed an initial order worth EUR 73 million. There is also an option to supply three additional systems worth EUR 204 million. A Skynex system consists of a sensor and tracking unit for airspace surveillance, a control station for command and weapon deployment, and four 35mm Revolver Gun Mk3 fire units. This should enable the defense against threats from missiles, artillery, mortars, drones, and loitering munitions. Delivery of the pilot system is scheduled for the second quarter of 2026.

Italy is the first NATO member to opt for Skynex technology in conjunction with Rheinmetall's 35mm Mk3 revolver gun. This is an important milestone in achieving Rheinmetall's goal of establishing Skynex as the new standard in cannon-based air defense for international armed forces.

Rheinmetall's share price has already risen by around 15% this year and is trading at EUR 694.

First Phosphate's shares have a good chance of being among the high flyers of 2025. The PEA provides investors with a reliable scenario for the future and analysts are also likely to update their studies soon. It is also possible that takeover speculation could emerge. This does not exist at Rheinmetall, but the Company has numerous growth drivers. However, the peace in Ukraine sought by the new US president could temporarily cause the share price to drop. D-Wave is likely to remain a hot stock this year as well. Quantum computing is a hot topic, and it will be interesting to see whether specialists or tech giants ultimately dominate the field.