May 31st, 2021 | 08:47 CEST
Deutsche Bank, Barsele Minerals, Volkswagen: Shareholders get happy here
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"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Deutsche Bank: Turnaround with pitfalls
Even though Deutsche Bank's reform course received much praise at this year's Annual General Meeting, there were also headwinds for the management. While bonuses had risen lavishly, shareholders were again treated to a zero increase in the dividend. Representatives of major fund companies drew attention to this disparity. CEO Christian Sewing declared his intention to pay a dividend again from next year. But is that enough to make investors happy? Fortunately, Deutsche Bank has paved the way in recent years to distribute profit shares again soon. In 2020, a surplus of EUR 113 million was achieved for the first time in seven years. Things are going well for the bank, especially in the investment business. Thanks to this division, the share is considered a turnaround stock by standard stock investors. But what are the real prospects for the stock?
After all, Deutsche Bank has generated a return of 57% over a one-year period. Most recently, the share price also reached a new three-year high. If it also successfully clears the remaining resistances up to EUR 13, the share could rise further. The prospect of a dividend in the coming year may even attract further investors. The figures could be even better and the bank could finally be back on a solid footing. However, it is also clear that Deutsche Bank has lost much of its old reputation and no longer plays a major role internationally. It will take more than cautious dividend plans to regain its old strength - after all, Deutsche Bank is a large tanker that is slow to change course.
Barsele Minerals: This deal is already half wrapped up
The opposite of a tanker is the stock of Barsele Minerals. The Canadian Company currently operates the Barsele project in northern Sweden together with mining giant Agnico Eagle. Currently, Agnico holds 55% and Barsele 45%. However, there is a memorandum of understanding between the two companies that will enable Barsele to acquire 100% of the project. The conditions for this are straightforward: Barsele would have to raise CAD 45 million and grant Agnico a 14.9% stake in its shares. On top of that, there would be options to buy a further 6 million shares at CAD 1.25 per share. Clearly, Agnico Eagle trusts the Barsele Minerals team to get the property to target faster on its own - why else would the mining giant settle for a relatively small cash stake and shares in Barsele Minerals?
The Barsele Minerals team comes from the Belcarra Group, which controls several junior companies and has already discovered Orko Silver's La Preciosa silver-gold deposit in exactly this composition. After Barsele Minerals has already fixed the key data of the complete takeover, they want to advance the project as fast as possible. The goal: Good drilling results should facilitate the acquisition and attract new investors. To this end, Barsele Minerals intends to drill at least 30,000 meters over the next year and a half. The Barsele Project is located in Sweden in the middle of an established infrastructure and still offers a lot of potential for development. By at least one million ounces, the Company aims to expand its NI 43-101 mining standard resource estimate. At the end of the 18-month period, the Barsele Project should be significantly more attractive than it is today. The Company then intends to implement the letter of intent concluded with Agnico Eagle and strike on favorable terms.
Whether, in the end, Agnico Eagle makes eyes at the pretty bride or another big player wants to set foot in Sweden's promising mining region, shareholders may ultimately not care. Even a takeover race cannot be ruled out. Anything is possible with Agnico Eagle holding 14.9% of Barsele Minerals shares after the deal is completed. The constellation around Barsele Minerals and Agnico Eagle is just getting around in the mining scene. Since the value is not very liquid in Germany, investors should limit orders. Those who believe in gold and have at least 18 months should make a note of Barsele Minerals.
Volkswagen: What will become of Lamborghini?
The Volkswagen share currently shows that the share price can only profit when a company's assets are in demand. The group from Wolfsburg has, among others, the sports car brand Lamborghini in its portfolio. This has attracted the interest of the Swiss Quantum Group, which works with Anton Piëch, the son of the late Ferdinand Piëch, among others. The Swiss are said to be offering EUR 7.5 billion for Lamborghini, according to media reports. But the reaction from Wolfsburg to the offer was cool. A sale was not up for discussion, not even in parts. Just a few months ago, however, this sounded quite different. At that time, Group CEO Herbert Diess had indirectly put the brand in the shop window.
Volkswagen's share price has climbed 4.5% in the past five days. Despite the denial, investors sense a possible bidding war. Investors believe that a company like VW, which has several brands on offer, could be willing to sell under certain circumstances. Since VW also has tailwind from its e-car offensive announced a few weeks ago, the stock is heading back to its high for the year. Conservative investors should keep an eye on the value. Those who like it more speculative should also put Barsele Minerals on the watch list. Here, too, the management has a lucrative sale in mind in the long term. First, however, the joint venture with Agnico Eagle must be resolved. Because the terms for this have already been fixed, a top deal is in the air for Barsele shareholders in the long term.
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