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March 5th, 2024 | 08:55 CET

Globex Mining, Rheinmetall, Fisker - Correction nearing its end

  • Mining
  • Commodities
  • Gold
  • armaments
  • Automotive
Photo credits: pixabay.com

The German economy is shrinking, and there is no sign of an end to the downward spiral in the current year. Only the defense industry, which was dubbed socially harmful before the Ukraine conflict, is acting as a growth engine, with shares in the sector rushing from one high to the next. The growing and likely continuing demand for defense goods is increasing the need for critical metals. After a prolonged correction, copper, lithium, and others may now have completed their bottoming out.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: GLOBEX MINING ENTPRS INC. | CA3799005093 , RHEINMETALL AG | DE0007030009 , Fisker Inc. | US33813J1060

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

     

    Rheinmetall - The engine of the German economy

    The German economy is weakening, and there is no end in sight to the slump. After the gross domestic product shrank by 0.3% at the end of last year, the German Institute for Economic Research expects economic output to fall further in the first quarter. The defense industry is one of the few sectors currently experiencing an upturn. Since the invasion of Russia, business has been booming, and the order books of Rheinmetall and Hensoldt & Co. are bursting at the seams.

    The importance of the Company's flagship, Rheinmetall AG, has grown considerably outside Germany since the Ukraine conflict. The most recent order comes from a European NATO state, which has commissioned the Düsseldorf-based company to supply artillery rockets for multiple rocket launchers. The order volume amounts to over EUR 300 million net. The strategic expansion of the portfolio to include rocket artillery is beginning to bear fruit here, following the ground-breaking ceremony for a new plant in Unterlüß, Lower Saxony, in mid-February, which will produce components for rocket artillery in addition to explosives and artillery ammunition.

    After weeks of a bull run and reaching an all-time high of EUR 436.50, Rheinmetall's stock is currently taking a breather. A pullback to the range around EUR 400 would be more than normal due to the oversold situation.

    Globex Mining - Underlying assets pick up

    The conditions for an increase in the intrinsic value of the portfolio are currently better than ever for the commodities incubator from Canada. In addition to the fact that gold is close to its all-time high, the precious metal silver is also continuing to rise. In addition, industrial metals such as copper and lithium have bottomed out after a lengthy correction, which could indicate a long-term countermovement.

    The share price of Globex Mining also jumped by more than 5% to CAD 0.83, enabling the share price to break through the downward trend established in December. The next short-term target will likely be the 200-day line at CAD 0.88. Beyond this, the first significant resistance level is CAD 0.96.

    The fact that the debt-free company, valued at 45.87 million CAD, has significantly higher potential is evident when looking at its broadly diversified portfolio, boasting a staggering 247 projects. These projects are strategically located in areas with low political risk in Eastern Canada, Germany, and the US. The spectrum of holdings includes 123 precious metals, 68 base metals, and 56 specialty metals and industrial minerals, all of which are crucial for achieving climate goals.

    Globex Mining receives a regular cash flow from income from royalties, the sale or lease of mining rights and the pro rata collection of minerals sold. As at the end of February 2024, 100 properties had been awarded to licensees. In addition, the licensee is responsible for the exploration of the projects and bears all costs.

    In addition to the ever-growing portfolio, the Company, led by mining veteran Jack Stoch, holds more than CAD 25 million in cash, shares and marketable securities. The latest acquisition is the purchase of eight unpatented gold-silver claims totalling 66.88 hectares. The project area is located on the northwestern edge of the historic Crescent mining district on the western slope of the McCullough Mountain Range. Globex has already completed initial field work, including geologic mapping, and has collected a total of 65 rock samples on the Red Star property and two off-property samples.

    Fisker - Rescue from Japan?

    Could there still be a lifeline for the crisis-ridden Los Angeles-based company? According to speculation, the rescue could come from Japan. According to Reuters, Nissan is said to be seeking a stake. Such a partnership could allow Nissan to enter the market for electric pick-up trucks while potentially saving Fisker from bankruptcy. According to speculation, Nissan could make an investment of over USD 400 million in Fisker's truck platform, with the aim of producing a pick-up based on it in the United States from 2026.

    Fisker is unlikely to survive on its own. Despite drastic management measures, including the dismissal of around 15% of employees, the electric vehicle manufacturer posted a net loss of USD 463 million in the fourth quarter on revenues of USD 200 million.

    Following the possible rescue, the share price rose by more than 50% to USD 0.58 but gave up half of its gains yesterday (Monday) and is currently trading at USD 0.48. An investment here resembles a game of roulette.


    Rheinmetall was able to secure another three-digit million order. Rising precious metal prices and the bottoming out of other commodities should significantly increase the intrinsic value of Globex Mining's holdings. Fisker could be rescued at the last minute by the Japanese automotive company Nissan.


    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.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



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