Close menu




August 15th, 2023 | 05:45 CEST

E-car flash in the pan or summit rush? The key players: Varta, Rock Tech Lithium, Almonty Industries

  • Mining
  • Lithium
  • Tungsten
  • Electromobility
Photo credits: pixabay.com

After a challenging climb, we often reap the rewards of our efforts - this is just as true on the stock market as it is after a day in the Alps. While clear skies, Alpine delicacies, and traditional hut festivities might be limited to holidaymakers, a lucrative reward beckons permanently on the stock exchange after thorough research. We look at how investors can navigate the recent price fireworks in e-car shares.

time to read: 3 minutes | Author: Nico Popp
ISIN: VARTA AG O.N. | DE000A0TGJ55 , ROCK TECH LITHIUM | CA77273P2017 , ALMONTY INDUSTRIES INC. | CA0203981034

Table of contents:


    Varta: Star or Underdog?

    German battery legend Varta had an exceedingly hard time during the past few quarters: the e-car fantasy fizzled out. The advance praise was too great, and the potential of the cooperation with Porsche was too small. After Varta had again corrected its forecast for the current fiscal year, the Company recently sent positive signals: 2024 could bring more dynamic growth and ultimately more than EUR 900 million in sales, according to Varta. On the stock exchange, this news triggered a jump in the share price and catapulted the SDAX-listed company upwards. On Monday, the stock held above the EUR 21 mark despite the rapid increase, which is indeed a reassessment by the market, considering the prices were around EUR 18.20 just last week. With the stock having traded at over EUR 80 a year ago, turnaround fantasy is in the air.

    Investors should nevertheless bear in mind that Varta is under competitive pressure and that batteries are currently a topic for many industrial companies. It is not yet clear which technology will ultimately prevail. Although different areas of application certainly offer scope for different technologies, German companies, like Varta, still remain underdogs in an international comparison.

    Rock Tech Lithium: Good strategy, but risks remain

    The Rock Tech Lithium share shows that a comeback is sometimes difficult. The Company anticipates high margins on a ten-year horizon. Currently, Rock Tech Lithium is building a lithium converter and wants to refine the "white gold" for industrial processing. Presently, the Company is still mining the raw material in Canada - in a comparatively environmentally friendly manner. In the long term, the Company has committed itself to the circular economy. This strategy is not only well received by the market, but Rock Tech Lithium could cut itself a big slice of the pie with its lithium converters and play a crucial role in the mobility revolution.

    Almonty Industries: Approx. 70% already funded - when will the market price out risk?

    Almonty Industries recognized years ago that critical raw materials will be the main factor in the transformations of the coming years. Tungsten, which can also play a role as a battery metal in addition to high-grade alloys and light bulbs, has so far come mainly from China. Almonty, which currently produces tungsten in Portugal, continuing a long tradition there, has developed a giant mine in the Sangdong project in South Korea that has what it takes to become one of the largest tungsten suppliers outside China. "June and July have been busy months at the Almonty Korea tungsten project, with the successful arrival of the protective screen and recovery feed following the arrival of the semi-autogenous grinding and ball mill in June," Almonty CEO Lewis Black said in an early August press release. "We are pleased to be able to access funds from our lending partner KfW as part of the project financing."

    Almonty has secured USD 75 million in project financing with Kreditanstalt für Wiederaufbau (KfW) 2021, which will cover approximately 70% of Sangdong's USD 105 million construction cost. Given the tight situation in the tungsten market and the market dominance of China, the chances are good that the project, which is already well-advanced, can be led to success.

    The share of Almonty Industries was still quoted at around EUR 0.75 last year - currently, it is EUR 0.38. Especially during complex construction projects, such as the construction of the Sangdong mine, the markets price in risks. In addition, the market environment has been weak for several months. However, if the start of production is successful, the market usually prices out risks again quickly. Speculative investors can take advantage of precisely this development. Since tungsten can also play a role in batteries and replace the controversial cobalt, the metal, the extraction of which is complex and requires expertise, certainly exudes esprit.


    When it comes to promising growth stocks, it is like climbing to the top of the Alps: only after the work is done do the rewards beckon. In the case of Almonty Industries, it currently seems as if not many investors have taken the trouble to thoroughly examine the Company's prospects - although the Company has long had its sights firmly set on the summit. While Varta faces big competition and Rock Tech Lithium needs to get its horsepower on the road first, Almonty Industries, valued at CAD 129 million, could be an insider's tip.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    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.

    About the author



    Related comments:

    Commented by André Will-Laudien on July 17th, 2024 | 09:00 CEST

    Elon Musk finances Donald Trump - Now a strategic move with Rheinmetall, Aixtron, Almonty Industries, and Varta

    • Mining
    • Tungsten
    • renewableenergies
    • Defense
    • hightech

    An assassination attempt with consequences. Tech billionaire Elon Musk has expressed his deepest solidarity with presidential candidate Trump following the assassination attempt. The Tesla CEO will henceforth financially support the Republican presidential candidate's campaign massively. Musk intends to provide around USD 45 million per month, as reported by the Wall Street Journal. The latest election polls now put the Republican clearly ahead of Biden. This could lead to a strongly US-oriented policy in the spirit of "America First". Above all, Trump aims to halt immigration, invest in the ailing infrastructure, massively arm the national security, and revitalize "Old America". Everything suggests that the blockbuster sectors of high-tech and armaments will continue thriving for now. The focus is clearly on strategic raw materials due to the efforts to reduce foreign dependencies. Where are the opportunities for shareholders?

    Read

    Commented by Armin Schulz on July 17th, 2024 | 07:45 CEST

    Nel ASA, dynaCERT, Plug Power - Hydrogen: Multiplier or downfall?

    • Hydrogen
    • greenhydrogen
    • renewableenergies
    • Electromobility

    Hydrogen technology could not only revolutionize the future of energy but also offer significant opportunities for investors. Hydrogen stocks are currently in the spotlight and promise potentially high returns. Companies specializing in the production, storage, and distribution of hydrogen could be among the big winners of the energy transition. Many of these companies are still in the early stages of development, which means high growth opportunities but also entails corresponding risks. The question is: Can you get multipliers in your portfolio with hydrogen companies, or is there a risk of total loss? We look at three companies aiming to make money with hydrogen.

    Read

    Commented by Fabian Lorenz on July 17th, 2024 | 07:30 CEST

    Siemens Energy share down 50%? Now time to buy Rheinmetall, Bayer, and Saturn Oil + Gas?

    • Mining
    • Oil
    • Defense
    • Pharma
    • renewableenergies

    Can the Siemens Energy share halve in value? At least, that is what the analysts at Bernstein think, who have set a price target of EUR 15. After a strong rally, the focus is now back on the Company's problem areas, such as India. Rheinmetall, on the other hand, is recommended as a "Buy". Can the armaments group thus end its sideways movement? In an initial study, analysts see around 50% upside potential for Saturn Oil & Gas. The oil company intends to significantly increase its free cash flow in the coming years but is considered undervalued compared to its peers. Some analysts see even more potential. Analysts are cautious about Bayer shares. In addition to the well-known legal disputes, operational issues are also a burden.

    Read