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October 18th, 2021 | 13:05 CEST

Defense Metals, Nordex, Varta - These are the reasons for the rising prices!

  • RareEarths
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Rare earths are indispensable for the production of laptops, cell phones, electric motors and wind turbines. However, their extraction is complicated, which is why the supply is also relatively low. The EU has classified many of these metals as critical with regard to their availability given their great importance for many industries, also because of China's dominance as the largest supplier. Efforts to build rare earth mines outside China are proceeding at full speed.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: DEFENSE METALS CORP. | CA2446331035 , NORDEX SE O.N. | DE000A0D6554 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:

    DEFENSE METALS CORP - Drilling program accelerated

    Canadian exploration Company Defense Metals is developing the Wicheeda Rare Earth Project, covering about 1,700 hectares in British Columbia. Past drill programs from 2019 delivered good results. For example, indicated mineral resources are 4.89 million tonnes at an average grade of 3.02% light rare earth elements (LREO) and suspected mineral resources of 12.1 million tonnes at an average grade of 2.90% LREO. The 2021 drill program, with a planned total length of 2,000 to 5,000m, is well underway.

    Since the drilling campaign began less than four weeks ago, over 1,500m has already been completed in eight diamond drill holes. Now the Company announced it will deploy a second drill rig. The aim is to use it to drill infill holes in the central area of the deposit.

    Thus, the following weeks will be very exciting for the shareholders of Defense Metals, when the drilling program results will be published successively. Step by step, this will then allow a better potential assessment of the property. Currently, the Company is valued at CAD 21 million. Given the strategic importance of rare earths and increasing demand, which should lead to rising prices in the medium term, the share is worth a closer look.

    NORDEX SE - Strong order intake

    The shares of the North German wind turbine manufacturer were able to gain in recent days following good order intake. In recent months, the papers had lost significantly. Corona led to supply chain problems and delays in the completion of projects. In some cases, compensation payments had to be made as a result. In addition, higher raw material costs and rising start-up costs had a negative impact. Even though it made sense in perspective, two capital increases in the last 12 months resulted in a significant dilutive effect.

    The Nordex Group received orders for 389 wind turbines in the third quarter with a total rated output of 1,829 megawatts (MW). That represents a substantial increase over the same period a year ago when orders were received for 271 wind turbines and 1,229 MW. Advantageously, the new and higher-margin generation of Delta4000 turbines accounted for 1,391 MW or 76%. The largest single order in the third quarter came from Australia with 162 turbines of the N163/5.X series and a rated output of 923 MW. In addition, the northern Germans received orders from eleven other European countries, mainly from Germany and Poland.

    Company CEO Luis Blanco was very pleased with the latest successes: "In addition to the major order from Australia, we have again benefited from our strong market position in Europe. The good demand for our Delta4000 series is continuing at a high level. Especially for the European markets, we expect this to be supported by our recently launched turbine for the 6 MW+ class, the N163/6.X."

    Varta - Share slowly recovers

    The shares, which have come under pressure, have moved away significantly from the chart support line at EUR 110 in recent weeks and are currently trading at around EUR 130 again. Thus, investors have probably absorbed the disappointing half-year figures by now. Varta also confirmed plans to build V4Drive lithium-ion cells for battery-electric vehicles at the recently held Capital Markets Day. However, many analysts rated this event as lacking in insight. Earlier this year, the technology and innovation leader in microbatteries announced plans to enter the production of large round lithium-ion cells for battery electric vehicles. These new next-generation cells enable long ranges and additional power for dynamic driving.

    Megatrends often provide the framework for rewarding investments. Sufficient raw materials and elementary components, as can be seen from the chip crisis, form the basis. Investors can profit from the trend towards higher rare earth prices in the long term with the Defense Metals share. With Nordex and Varta, investors bet on the areas of renewable energies and electromobility.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

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