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September 1st, 2023 | 08:10 CEST

GoviEx, Siemens Energy, Delivery Hero - Which stocks have the greatest growth potential

  • Mining
  • Uranium
  • Energy
  • renewableenergies
  • Food
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Seamless energy supply has become a competitive advantage. France, for example, gets 70% of its electricity from uranium. With an outstanding uranium recovery rate of 88% in Zambia, GoviEx supplies the world with this valuable energy source. The Company focuses on the exploration and development of uranium deposits in Africa. Renewables, however, are not quite taking off for them. Siemens Energy is facing significant cost problems in its onshore wind turbine business. Damages to rotor blades and bearings could cost the Company up to EUR 4.5 billion. People always need to eat. Those who prefer ordering food in light of high electricity costs should look at Delivery Hero. Citigroup seems to have better information on the delivery service than current investor sentiment suggests.

time to read: 5 minutes | Author: Juliane Zielonka

Table of contents:

    Craig Taylor, CEO, Defense Metals
    "[...] Recovery rates of more than 90% rare earths are another piece of the puzzle on the way to the economic viability of our project. [...]" Craig Taylor, CEO, Defense Metals

    Full interview


    GoviEx with 88% uranium production in Zambia

    The high cost of energy in Germany is causing domestic industry to move away. According to a survey by the German Chamber of Industry and Commerce (DIHK), a third of the companies in the country are restructuring their energy supply. This is not about freedom from emissions but about pure competitiveness. "German business confidence in energy policy is at an all-time low," says the Chairman of the German Chamber of Industry and Commerce, Achim Dercks to Bloomberg. "Concerns about competitiveness are at an all-time high."

    France, for example, gets 70% of its electricity from uranium. Worldwide, about 10% of electricity in nuclear reactors is generated from uranium. The US has about 90 operating reactors that supply 20% of its electricity.

    Thus, the raw materials company GoviEx is finding buyers around the world to purchase the valuable uranium for the country's own energy supply. GoviEx focuses on exploring and developing uranium deposits in Africa, Mali, Zambia and Niger. Niger is one of the most important suppliers of uranium to the European Union (EU), contributing between 15% and 17% of uranium to French power generation. In a statement issued in July, GoviEx points out that production has not been affected despite the unrest in the country.

    Thanks to its diversified portfolio, mining operations in Zambia, among others, continue as usual. Located near Lusaka, some 200 km to the south and just north of Lake Kariba, GoviEx's advanced uranium project extends to elevations between 500 and 960 m. The mineral resource of 15.2 million pounds of U3O8 (Measured and Indicated) and 44.9 million pounds of U3O8 (Inferred) was determined in November 2017.

    The uranium deposit is hosted in the sandstones of the Escarpment Grit Formation of the Karoo Super Group. The planned mine life is 11 years, with an annual production of 2.6 million pounds of U3O8 and a uranium recovery of 88%.

    Total project start-up costs are USD 121 million, with operating costs of USD 31.1 per pound of U3O8. A mining license has already been granted based on the concept of open-pit mining and bulk leaching. Solid infrastructure includes a 39 km gravel road for access and groundwater and available grid power about 60 km away.

    Siemens Energy - Cost explosion

    According to a report in Germany's Manager Magazin, problems in the onshore wind turbine business could cost Siemens Energy as much as EUR 4.5 billion. Siemens Energy shocked markets in June when, shortly after fully acquiring Siemens Gamesa, one of the world's largest manufacturers of wind turbines, it announced several problems that had previously been only partially owned. The issues involve damage to rotor blades and bearings on the 4.X and 5.X platforms. While the turbines are in operation, most of the repairs are scheduled for 2024 and 2025.

    But that is not all: The Company cannot utilize tax loss carryforwards amounting to EUR 700 million, as it is unclear when the Company will return to profitability. For Q4, the Executive Board expects operating losses of at least EUR 600 million.

    Some executives cannot and do not want to watch this tragedy any longer. For example, Siemens Energy human resources chief Gina Vargiu-Breuer is moving to SAP, where she will start in February 2024, according to Handelsblatt. After the spinoff from Siemens in 2020, Vargiu-Breuer was instrumental in building the human resources function at Siemens Energy and developing a comprehensive "business transformation," SAP said in its announcement. In that role, she worked closely with managers and employees, empowering them to participate as "active co-creators" in the process. If there is one thing these co-creators can do over the next 24 months, it is crisis communications.

    Citigroup raises price target for Delivery Hero to EUR 56

    With energy costs so high, some households are turning to delivery services instead of cooking for themselves. But apparently not enough. Delivery Hero shares fell 12% to a 4-month low of EUR 31.46. The food delivery company published its half-year report on Wednesday, reporting a net loss of EUR 832.2 million. Compared to the same period last year, when the loss was EUR 1.5 billion, this is an improvement. Nevertheless, investors were disappointed, as they had hoped for a smaller loss, according to analyst Alexander Zienkowicz of AlsterResearch.

    Although Delivery Hero announced in early August that it had broken even operationally in the first six months, its Asian business remained a drag. With the lifting of pandemic restrictions, people preferred eating at restaurants to home delivery. This weighed on the Company's performance in the Asian market.

    Food rival HelloFresh, on the other hand, reported an impressive 31.5% increase in operating profit to EUR 191.9 million. Despite an 8.7% decline in active customers, the meal box shipper increased its revenue by 1% to EUR 1.92 billion. The preliminary figures from July were confirmed, and the adjusted full-year targets remain in place. HelloFresh now expects revenue growth of 2% to 8% and adjusted operating profit between EUR 470 million and EUR 540 million. HelloFresh shares are EUR 30.52, and Delivery Hero is EUR 33.27. Citigroup believes in Delivery Hero and has raised its price target from EUR 51 to EUR 56.

    GoviEx is establishing itself as a major player in global energy supply through its uranium mining operations in Zambia, Niger and Mali. The Company continues to operate as usual despite the unrest in Niger, and thanks to its Mali and Zambia sites, has two more African countries where it mines uranium. GoviEx showcases how focusing on valuable uranium can contribute to the global energy transition. Siemens Energy faces numerous challenges, from cost issues to strategic realignment. One of the main problems is damages to onshore wind turbines from Siemens Gamesa, which could result in costs of up to EUR 4.5 billion. This setback comes at a critical time, as Siemens Energy is already struggling with increased material costs, and the Head of HR is also absent. Delivery Hero disappointed with a net loss of EUR 832.2 million in its half-year report. Despite announcing it had broken even operationally in the first six months, weak Asian business weighed on the bottom line. Following the lifting of pandemic restrictions, consumers preferred to eat out at restaurants, leading to operational difficulties. Delivery Hero shares saw a significant decline in value. However, Citigroup continues to see the potential of this Company and sets the price target at EUR 56.

    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.

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    Der Autor

    Juliane Zielonka

    Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.

    About the author

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