DAX 22,000 – New highs for Oklo, Nova Pacific Metals, D-Wave, and SMCI under the microscope!

Nova Pacific Minerals – Critical metals in focus

The increasing demand for raw materials in the defense and energy industries makes their availability particularly critical. This is because strategic industrial metals such as copper, nickel, lithium, and rare earth elements play a crucial role in North America's national security. These raw materials are essential for high-tech applications, military equipment, and the energy transition. While China continues to dominate the market, the heavily import-dependent industrialized countries are trying to diversify their supply chains and increase the number of domestic mining operations. However, geopolitical risks make global sourcing a risky business.

Nova Pacific Metals Inc. is a Canadian exploration company focused on the Lara Volcanogenic Massive Sulfide Project (Lara VMS Project) on Vancouver Island. The Lara VMS Project already has a historic resource rich in critical and precious metals located at a site with excellent infrastructure. Nova Pacific's forward-looking strategy includes confirmation and infill drilling, the completion of an updated mineral resource estimate (MRE) and, in the future, the preparation of a pre-feasibility study. The planned drilling program at the Lara volcanogenic massive sulfide (VMS) project has now been significantly expanded. This decision follows a comprehensive compilation and analysis of the project's historical database, which has uncovered new potential within the Coronation Zone. The expanded drill program now includes 49 drill holes totaling 10,000 meters, while only 19 drill holes were planned initially. The program is scheduled to start in the second quarter of 2025.

CEO Malcolm Bell commented: "The results of this historic database compilation have exceeded our expectations and strengthened our belief in the exceptional potential of the Lara Project. We are on the cusp of what could be a transformational time for Nova Pacific." The expanded database provides a comprehensive overview of the property's potential, including assay values for zinc, silver, gold, barium, copper, and lead, as well as specific gravity measurements. NVPC stock is currently trading well in the market, actively trading between CAD 0.32 and CAD 0.37. For the extensive assets in British Columbia, the market capitalization of only CAD 12 million is very low. Time to accumulate!

Oklo Inc – Fivefold increase in 5 months

The shares of small reactor specialist Oklo Inc. were in high demand in recent weeks. Shares rose a whopping 35% last week to close at a new high of USD 59.5 per share. Investors' optimism was fueled by the government's plan to prioritize the expansion of the energy industry over achieving net-zero targets. The confirmation of Energy Minister Chris Wright as head of the ministry also gave the doubting investors cause for optimism, as he is a former member of the Company's board of directors and is arguably best placed to assess what is happening within the Company. Although there is still no reliable and proven design within the much-discussed SMR technology, traders have already raised the market capitalization to over USD 6 billion. However, the Company is still in the conceptual phase, and there is little information about the SPAC shell listed on the stock exchange. Caution is advised: upper turning points can be technically identified in the USD 50 to 60 range; in January, the share was still trading at USD 20. A hot potato for traders!

SMCI and D-Wave Quantum – Dancing on a Volcano

Similarly rapid, but not necessarily in the same direction, is the stock performance of Nvidia partner Super Micro Computer (SMCI). After some inconsistencies in the balance sheet, the price plunged from around USD 118 to below USD 20 in 2024. Only when the auditor was changed could calm be restored. Within the AI community, the stock is being closely watched as the Company, a specialized supplier of cooling systems and high-performance network infrastructure, is considered an enabler in the industry. Large data centers require SMCI's technology, which chip designer Nvidia also relies on. Currently, only 4 of the 11 analysts on the LSEG platform dare to make a "Buy" recommendation with a 12-month price target of around USD 44. Since the price doubled after the sell-off, the experts' target is only 10% above the current mark. Daily trading volumes are massive!

One more word about D-Wave Quantum. After we recommended selling at around USD 10 some time ago, the value quickly plummeted to below USD 5. There were some technical support lines there. Currently, the value fluctuates by up to 15% daily under high turnover. A "correct level" has probably not yet been found for the quantum computing value. On the LSEG platform, there are at least 5 positive assessments. Based on estimated revenues of USD 8 million in 2024, the company expects to grow to around USD 100 million by 2028. However, the Company will not be profitable for years as it will continue to incur high R&D costs. So expect one or two capital increases when the price is right. A valuation of USD 1.8 billion is reminiscent of the tech bubble of 2000, when revenues and profits were equally in short supply and promising ideas were valued at billions. Careful at the platform edge!

The tech rally is shifting up a gear. Blockbuster Nvidia has now consolidated for four weeks and is taking off again. It is followed by the well-known AI stocks. At some point, the upward trend should also reach the commodities sector because, after all, the future models of the high-tech world cannot do without critical metals. Nova Pacific is proving to be very promising in this sector.