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Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


05. May 2021 | 09:17 CET

Defense Metals, Daimler, Siemens Energy: Rare earths facing a new hype?

  • RareEarths
Photo credits: pixabay.com

In 2010, the first hype about rare earths occurred. Even then, it was apparent that digital technology would not be able to do without rare earths. As a result, shares of mining companies increased in price by up to 1,000%.
Currently, there is a lot of talk about e-mobility causing raw material resources to become scarcer. However, the talk is mainly about copper, nickel, lithium and perhaps silver. Rare earths are mostly forgotten, although they are used in many electronic devices, fighter jets and wind turbines.
China controls 80% of the world market and, according to media reports, is considering restricting exports of rare earths. Doing so could have a significant impact on all industries that require rare earths.

time to read: 2 minutes by Armin Schulz
ISIN: CA2446331035 , DE0007100000 , DE000ENER6Y0


 

Author

Armin Schulz

Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

About the author


Defense Metals - NdPr is the trump card

Defense Metals has already confirmed rare earths at its 17 sq km site, namely the Wicheeda Rare Earth Project, located about 80 km north of Prince George, British Columbia. It is located in the middle of a mining center, offering excellent infrastructure with access to roads, rail lines, power and water. According to CEO Craig Taylor, this sets Defense Metals apart from the other rare earth deposits. The deposit features primarily neodymium-praseodymium (NdPr), the price of which has increased by more than 90% in the last year alone.

Considering the demand for rare earths, one finds that these magnetic rare earths, specifically NdPr, are in high demand. If China does stop the export of rare earths, the remaining resources will be even more valuable.
Currently, Mountain Pass mine is the only producing mine in North America and is owned by MP Materials. The geological setting of Mountain Pass is very similar to that of the Wicheeda Rare Earth Project.

Defense Metals' highly successful 26-tonne flotation pilot plant yielded approximately 1,200 kilograms of high-grade REE mineral concentrate. The Company is currently exploring agreements with several partners from Japan, the US and Canada. Production is expected to start from the first quarter of 2022 if everything goes as planned.

If you want to bet on rare earths, Defense Metals is well-positioned. In addition, there is a chance to become an acquisition candidate, knowing that MP Materials entered into a USD 1.5 billion merger deal with Fortress Value Acquisition in 2020 and holds USD 500 million cash to fund growth.

Daimler - Between chip shortages and new e-models

After the Corona crash down to EUR 22, Daimler significantly increased in value due to good sales figures in Asia. Since mid-February, the shares of the German carmaker have once again made significant gains. The reason is the focus on e-mobility.

At Daimler, the slogan is "Electric first." It means that in addition to the EQC and EQA, the EQB, EQE and EQS are now to be launched on the market. The latter two will also be available as SUVs. More rare earths are needed for the e-mobility fleet than for conventional vehicles.

The Executive Board and Supervisory Board have agreed that a spin-off of the truck division will be evaluated. The basis for this step is to be laid at an Extraordinary General Meeting in the 3rd quarter.

At present, however, the chip shortage is affecting Daimler just as it is many other automakers. Many employees are working short-time and it is still unclear when the supply of chips will return to normal. Therefore, one should closely monitor the developments before investing.

Siemens Energy - Taking a breather after a rally

Siemens Energy is active in energy technology and offers technically advanced services from planning to developing and delivering renewable energy plants. The focus is on wind turbines, and rare earths are needed there.

Looking at the annual report, one can see that currently, 66% of sales are still generated by gas turbines. 34% comes from the renewable energy sector. The Company wants to change this and is trying to establish itself in the hydrogen sector. The goal of climate neutrality in 2030 has been set. It will be interesting to follow this strategy.

After a substantial increase, the share is currently in a downward sideways phase. It should end between EUR 25.80 and EUR 24.50. At the end of April, JP Morgan issued an 'Overweight' recommendation, and Goldman Sachs considered the share a 'Buy.'


Author

Armin Schulz

Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

12. October 2021 | 11:55 CET | by Stefan Feulner

NIO, Defense Metals, Plug Power - It is getting critical

  • RareEarths

Today we are faced with ever-tighter climate targets on the one hand and the availability of critical minerals for a safe and fast energy transition on the other. The disparity between scarce supply and steadily increasing demand is widening. There has been a threat of extreme scarcity and a crashing failure of the widely announced climate change for many years. The few producers of strategic materials are likely to have a bright future.

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  • RareEarths

Lithium has become one of the most important metals in electromobility. Where all this lithium will come from is critical, as the logic behind electromobility is to generate more sustainable technologies. For more climate protection, mining companies must also fit into a sustainable concept. Lithium extraction should therefore follow high environmental standards and take place in an appropriate economic and social context. But beware: the overall market has recently stopped following every battle cry. Separating the wheat from the chaff is becoming a portfolio challenge!

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BYD, Nel, Defense Metals: In which direction is it going?

  • RareEarths

After the significant setback on Monday, the stock markets are looking for a direction. Individual stocks have held up well in recent days. Among these is Nel. The hydrogen specialist was even able to gain on Monday. That was not the case with BYD, but the shares of the Chinese car manufacturer are holding up surprisingly well given the crisis surrounding the Evergrande real estate group and the regulatory fury of the Chinese government. In addition, there are positive reports from the Company. Defense Metals also has positive news to report. Initial drilling results exceed expectations. All three shares are benefiting from the trend towards alternative drives.

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