July 11th, 2022 | 15:33 CEST
Easing at BioNTech and BASF, and Almonty Industries with a clear signal
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"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
Almonty Industries with first tranche
The stock market price of the Canadian exploration company Almonty Industries has fallen by around 37% year-on-year from CAD 1.30 to CAD 0.82, leaving a market value of EUR 136.00 million. At the same time, the mining company, which focuses on the mining and exploration of tungsten, is on the verge of a major breakthrough. Moreover, Almonty serves one of the most pressing issues of the moment, namely the procurement of critical raw materials from western regions.
Based in Toronto, Canada, Almonty's primary business is mining, processing and shipping tungsten concentrate from its Los Santos mine in western Spain and its Panasqueira mine in Portugal, as well as developing its Sangdong tungsten mine in South Korea. When fully commissioned, the Sangdong mine at the Almonty Korea Tungsten deposit will be responsible for 50% of the world's tungsten supply outside China.
With the closing of a USD 3.3 million private placement to directors and existing insiders in May, the final condition precedent to closing the USD 75.1 million KfW financing was completed. As a result, Almonty was able to announce the fully completed application for the drawdown of the first tranche of USD 12.82 million from KfW-IPEX Bank.
Lewis Black, President and Chief Executive Officer of Almonty, commented, "The world's largest tungsten mine is now fully funded and construction is well advanced. Our pursuit of further growth in one of the most strategically important global sectors is also now in full swing. Eventually, we will be the only transparent vertical tungsten oxide producer in the West. With our flagship project under construction, we will increase our production by more than 300% with the opening of the Sangdong mine and by another 150% with our current growth plan." The market has barely recognized Almonty's potential, but that is expected to change as construction progresses.
BioNTech shows signs of easing
The chart of the Mainz-based biotech company BioNTech has been like something out of a technical analysis textbook in recent weeks. After peaks of USD 464.00, the share price dropped to the 78.6% Fibonacci retracement and the test of the 2020 high of USD 130.38. This striking support area has been successfully tested for the fourth time in recent weeks. Currently, the price is moving north again. In the event of a sustained break of the resistance at USD 189.07, the price gap at USD 194.61 should be closed first. Then the attack on the downward trend that has been developing since July 2021 at currently USD 203.00 should take place. The 200-day line is also located at this level. A successful and sustainable breach could result in a price target of around USD 240.00.
BioNTech and Pfizer received a tailwind last week from the US Food and Drug Administration (FDA), which approved the two companies' application for full approval of their COVID-19 vaccine Comirnaty for use in individuals aged 12 to 15. The vaccine was previously available in the United States under an emergency approval for use in this age group. To date, more than 9 million adolescents aged 12 to 15 years have completed the primary vaccination series in the United States. The approval is based on data from a Phase 3 clinical trial involving 2,260 participants aged 12 to 15 years. Pfizer and BioNTech have also submitted these data to the European Medicines Agency (EMA) and other regulatory authorities worldwide.
BASF - Chance to bottom out
The shares of Badische Anilin- und Sodafabrik, or BASF for short, have been badly shaken in recent years. After peaks of EUR 98.80 at the beginning of 2018, it went down by 62% until the outbreak of the Corona pandemic in March 2020, when, as is well known, a broad-based market recovery took place, allowing the DAX stock to rise to a level of EUR 72.84. However, the Ludwigshafen-based company, which focuses on the core businesses of chemicals, plastics, performance products, crop protection and nutrition, as well as oil and gas, has since shown significant weakness in the overall market and has fallen back to the Corona low at the time. However, a double bottom could currently form here at around EUR 40, offering at least a short-term trading opportunity up to the resistance at around EUR 47.13.
Meanwhile, the US investment bank Goldman Sachs has a "neutral" stance on BASF. The price target was raised from EUR 57 to EUR 59 by analyst Georgina Fraser in a recently updated sector report. The expert refers to increased economic uncertainties due to the Ukraine war and concerns about an impending gas shortage, the corona lockdowns in China and recession risks.
Due to the uncertainties regarding geopolitics and fears of an impending global recession, the markets are fluctuating strongly. BASF and BioNTech could hold at important support lines and offer entry opportunities at discounted levels. At Almonty Industries, the starting signal has been fired.
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