18. October 2021 | 13:05 CET
Defense Metals, Nordex, Varta - These are the reasons for the rising prices!
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.
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ISIN: DEFENSE METALS CORP. | CA2446331035 , NORDEX SE O.N. | DE000A0D6554 , VARTA AG O.N. | DE000A0TGJ55
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.