From Niche Metal to Strategic Asset: Antimony Resources Gains Relevance for Rheinmetall and BASF

Antimony Resources: Holds the strategic raw material

With its Bald Hill project, Antimony Resources has fully specialized in the strategic metal antimony. In late April, the company reported soil samples from the Second Run Claim Block, 3 km south of the Bald Hill main zone. The results are exciting. Antimony concentrations up to 40 times the background level were measured, with peak values reaching 450 ppm. The anomalies are associated with interpreted fault zones and have not yet been explored. The site is easily accessible, and further sampling is underway in May. This is a clear indication that the mineralization system could be larger than previously assumed.

Drill hole BH-25-34 returned 4.38% antimony over 7.05 m, including a sub-interval of 9.76% over 3.15 m. The hole extends the Main Zone to the north and at depth. Mineralization has now been confirmed to a depth of over 400 m. The current definition drilling program concluded at the end of April with over 12,500 m. Samples are being analyzed at Activation Laboratories in Ontario. Updated 3D modelling by Motherlode Consulting is underway. At the same time, new target areas are emerging. These include the Marcus Zone with 100 m of exposed stibnite mineralization, as well as the Central and South Zones, where historical trench samples yielded 2.8% to over 9% antimony. A third drill rig is already scheduled to begin follow-up drilling starting in mid-May.

In parallel with the drilling successes, the company has initiated the permitting phase. GEMTEC, a local consulting firm, is developing a roadmap for the environmental impact assessment. Initial discussions with the provincial government and the Technical Review Committee have already taken place. The goal is to involve all stakeholders early on, from the Mi'kmaq and Maliseet to the local communities. GEMTEC is currently conducting desktop studies to gather baseline data and is preparing a detailed schedule with a Gantt chart. The application for regulatory approval is targeted for late 2026 or 2027. This is a clear signal that the company does not want to leave the timeline for potential mine development to chance. The stock is currently trading at CAD 1.00.

Rheinmetall – Between Record Order Backlog and Slowed Pace

Order backlogs alone are not enough, as Rheinmetall learned in the spring of 2026. While revenue rose by 7.7% to EUR 1.94 billion in the first quarter, it fell significantly short of market expectations of EUR 2.3 billion. At 11.6%, the operating margin did at least meet the analyst target. What really excites investors is the order backlog. It now stands at around EUR 73 billion, an increase of 31% within just a few months. The framework agreement for soldier systems with the German Armed Forces alone has a volume of up to EUR 3.1 billion. The problem is less the demand than the speed of implementation.

There are concrete reasons for the delays. Regulatory processes are dragging on, supply chains are stalling, and building capacity at new production facilities takes time. In the third quarter of 2025, the market still expected over 20% of the backlog to translate into revenue in 2026. Currently, that figure is only 12%. This weighs on short-term figures but does little to change the long-term outlook. Rheinmetall is driving forward vertical integration. Together with Destinus, a joint venture for cruise missiles is being established. Naval Systems is expanding with unmanned surface vehicles, and a satellite test facility is being planned in Norway.

Analysts remain confident despite the dip in the stock price. All firms analyzed recommend buying, with an average price target of over EUR 2,100. The risks are nevertheless real. A quick end to the war in Ukraine would put approximately EUR 2.2 billion in orders at risk. And it remains to be seen whether NATO countries will actually spend around 5% of their GDP on defence by 2035. Those betting on a continuation of the supercycle are currently buying a company with a massive cushion. However, patience is required until the orders actually hit the books. The stock is currently trading at EUR 1,445.40.

BASF - Quarterly figures paint a mixed picture

For BASF, antimony is not an exotic minor metal, but a critical component in flame retardants for high-performance plastics. A shortage of this raw material could lead to costly reformulations and recertifications for electronic housings, cables, or auto parts. China's export restrictions are making this strategic risk particularly tangible. Nevertheless, the chemical giant held its ground in the first quarter of 2026. At EUR 2.36 billion, adjusted EBITDA was only 6% below the previous year, despite massive currency effects of over EUR 100 million that would have weighed on earnings without countermeasures.

Revenue fell by 3% to EUR 16 billion as the dollar and the renminbi depreciated, and competition put downward pressure on prices. Volumes, on the other hand, increased in almost all segments—driven by the new Verbund site in Zhanjiang. There, 18 plants came online on schedule and under budget, and the steam cracker is powered entirely by renewable energy. The agricultural business also acquired AgBiTech, a specialist in biological pest control, thereby strengthening its position in the important Brazilian market.

Since March, the Middle East conflict and the closure of the Strait of Hormuz have been straining global supply chains. BASF is sticking to its annual forecast of EUR 6.2–7.0 billion in adjusted EBITDA. This is a sign of confidence, but it appears risky. The Group is currently benefiting from its local production strategy, as 90% of its products are manufactured regionally. However, the growing dependence on China, which accounts for around 14% of BASF's revenue, remains a strategic concern for investors. Things could get uncomfortable in the second half of the year. Currently, one share costs EUR 53.09.

The antimony crisis is real, but the three companies are taking different approaches. Antimony Resources is advancing the prospect of a domestic mine with strong drilling data and a clear approval timeline. Rheinmetall is struggling with implementation bottlenecks, but its huge order backlog of EUR 73 billion ensures high long-term demand for antimony-containing components. BASF is sticking to its annual forecast despite currency turbulence and commodity risks, but remains strategically vulnerable due to its dependence on China.