Close menu




May 28th, 2021 | 09:12 CEST

First Majestic Silver, NewPeak Metals, K+S - Soaring commodity prices

  • Commodities
Photo credits: pixabay.com

Commodity prices continue to soar. If we compare the first quarter of 2021 with 2020, we can assume an average price increase of 36.7%. As the raw materials market is currently unable to respond quickly enough to the high demand in many countries, prices are rising. An end to this spiral is currently not foreseeable, as more and more countries are slowly getting to grips with the Corona pandemic. Thus the demand for raw materials will continue to grow. We have picked out three exciting companies from the commodities sector today.

time to read: 3 minutes | Author: Armin Schulz
ISIN: CA32076V1031 , AU0000104374 , DE000KSAG888

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] 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

    Full interview

     

    First Majestic Silver - Acquisition of a gold mine

    First Majestic Silver announced the acquisition of the Jerritt Canyon Mine in Nevada at the end of April. The unique thing about it - the silver producer bought a gold mine and is now operating outside Mexico for the first time. The area is 308 km², and in the last 20 years, about 9.7 million ounces of gold have been mined there. The mine's seller is Sprott Mining, whose owner, Canadian billionaire Eric Sprott, now holds approximately 11.3% of First Majestic Silver's shares.

    According to CEO Neumeyer, they looked at silver mines worldwide. The most exciting acquisition was this very gold mine, what with the life of the mine, the size of the land package and the expandability. Nevada is one of the best mining areas for the Company, as evidenced by its investment in Blackrock Silver, which is also active in the area. Shares were subscribed for CAD 1.25 million in a private placement.

    The figures from the first quarter were good. Sales increased by 17% year-over-year, although at the same time, production fell slightly due to Corona. The increased silver price made it possible. In addition, record sales of silver coins and gold bars were achieved, and a dividend was announced. The stock has moved up since the numbers, but one should not forget the dwindling reserves. Assuming a rising silver price, First Majestic Silver can undoubtedly profit from this in the short term. It remains exciting.

    NewPeak Metals - Which project will bring the breakthrough?

    NewPeak Metals is an Australian junior explorer whose primary focus is on gold. The Company is diversified and owns various projects worldwide in Argentina, New Zealand, Finland and Sweden. Sweden takes a special place in this list, as tungsten and other strategic industrial metals are suspected there. Furthermore, the Company owns 30% of Lakes Blue Energy.

    The goal for 2021 is to increase the Company's market value through the discovery of new promising deposits. The Company recently announced the completion of the drilling program at the Cachi Gold Project in Argentina, which, according to the Company, discovered an extensive mineralized precious metal system extending 10 km wide and 5 km long. The drilling program at New Zealand's Cap Burn Gold Project has also been completed and results are expected shortly.

    Drilling is expected to commence on the two Finnish gold projects, Satulinmäki and Hopeavuori, starting this summer. The evaluation program of the Sweden project will be used to plan the exploration program, which is expected to begin in the third quarter. MMG Capital UK has been retained to advise on capital raising in Europe.

    If Lakes Blue Energy's shares are allowed to trade again, it would significantly increase the investment value. Despite the large number of shares, the market capitalization is very low. The Company has many irons in the fire. Speculative investors should consider an investment.

    K+S - On the upswing

    K+S is benefiting from the good development of raw material prices in the agricultural sector. For a few days now, the tensions between the EU and Belarus have been helping the K+S share to make smaller price jumps. Investors hope that the EU sanctions will also affect the competitor Belaruskali, which served about 17% of the total potash market in 2020. If this supplier to Western Europe fails, it could additionally drive the price of potash.

    The long winter has already done the Company well, as seen from the first-quarter figures. Revenues rose by 13.3% and EBITDA by over 26%. Analysts had expected much worse figures. The expected EBITDA for 2021 was raised by EUR 60 million. In addition, the US business was sold in April for EUR 2.6 billion and used to repay debt. No dividend is planned for this year.

    The share has broken its downward trend, which had lasted since 2018, and at the same time established an upward trend. The next resistance at EUR 11.30 has almost been reached. The expected sanctions should be priced in by now. Before getting in, one should wait for a setback. However, the share must not fall below EUR 9.50; otherwise, the technical chart picture will cloud over significantly.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Stefan Feulner on April 9th, 2024 | 06:45 CEST

    Palantir, Globex Mining, Bayer - The trend is pointing upwards

    • Mining
    • Commodities
    • Gold
    • Silver
    • Pharma
    • Software

    After a successful first quarter of 2024, the DAX and Dow Jones took a well-deserved breather last week. In contrast, the precious metal markets for gold and silver continued their upward trend. Gold also reached new absolute highs of USD 2,354 per ounce. While gold producers such as Barrick Gold and Newmont remained in hibernation, they have been following the rising base price for several weeks now. There is currently also an opportunity for smaller commodity stocks to participate disproportionately in the upward trend.

    Read

    Commented by André Will-Laudien on March 27th, 2024 | 08:30 CET

    Watch out: DAX record chase! Automotive stocks in the fast lane: Mercedes-Benz, Globex Mining, VW and Tesla

    • Mining
    • Commodities
    • hightech
    • Electromobility

    The DAX 40 index is chasing from one high to the next, surpassing the 18,400 mark yesterday. In addition to artificial intelligence, it is primarily high-tech and defense stocks that are moving the market. The automotive stocks are still in the doldrums, as an expected decline in GDP also means smaller household budgets. Nothing is worse for the industry than the postponement of new car purchases until next year. The stockpiles are getting bigger, and dealers are plunging into desperate discount battles. However, the market is changing noticeably. Currently, there are clear buying candidates; we analyze the current situation.

    Read

    Commented by Juliane Zielonka on March 22nd, 2024 | 07:45 CET

    BYD, Globex Mining, Mercedes-Benz shares: The energy transition is picking up speed with these companies

    • Mining
    • Commodities
    • Electromobility
    • renewableenergies

    BYD in China is regarded as innovative and successful with its wide range of models and brands. The Company has become one of the top ten car manufacturers and is the global leader in the production of new energy vehicles (NEVs). In the fourth quarter of last year, BYD even overtook Tesla with over half a million electric vehicles sold. BYD is now pushing further into international markets in order to maintain its growth trajectory. The increasing demand for electrification also means a higher demand for the corresponding raw materials. Globex Mining is well positioned in this regard; with 247 different projects and over 40 years of industry experience, investors benefit from the unbeatable expertise of the experienced management team. Mercedes-Benz leadership has reason to rejoice. The figures from the last financial year are solid, and the salaries of the Executive Board have been generously increased. Who is really picking up speed now?

    Read