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October 11th, 2023 | 09:10 CEST

Hensoldt, Globex Mining, Siemens Energy - The wind is turning

  • Mining
  • Gold
  • Silver
  • renewableenergies
  • Energy
Photo credits: pixabay.com

While major global stock indices took a beating following the intensified conflict between Israel and the Palestinian Islamist group Hamas, precious metals markets once again lived up to their reputation as a safe haven. After both gold and silver experienced a sharper correction in recent months, this event could be the starting signal for the next upward momentum.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: HENSOLDT AG INH O.N. | DE000HAG0005 , GLOBEX MINING ENTPRS INC. | CA3799005093 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0

Table of contents:


    Justin Reid, President and CEO, Troilus Gold Corp.
    "[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

    Full interview

     

    Siemens Energy to shed ballast

    Billions in losses and a crashing profit warning in the second quarter, mainly caused by Spanish subsidiary Siemens Gamesa. Restructuring plans are underway, with CEO Christian Bruch prioritizing stability and putting profitability ahead of growth in the future. Siemens Energy is considering site closures at its subsidiary Siemens Gamesa. Offices, even entire plants, could be shut down, job cuts are possible, and the production of key elements such as rotor blades and turbines could be outsourced, according to sources cited by the Reuters news agency. So far, Siemens Energy has incurred EUR 2.2 billion in costs related to the issues, which include wrinkles in rotor blades and faulty gearboxes in newer onshore wind turbines.

    Details of the restructuring of the division could be announced in November when Siemens Energy publishes its annual results and holds a capital markets day. It said no final decisions have been made, and details of the restructuring program could still change.

    Investor reactions were optimistic despite the weak market environment, sending Siemens Energy up more than 2% to EUR 11.59. However, the share price has halved since the beginning of June. Should the restructuring take effect, the oversold share could be one of the outperformers on the market.

    Globex Mining - Safe haven with yields

    In turbulent times like we are currently experiencing, the urge for security and diversification is the top priority. In this respect, the Canadian commodity incubator Globex Mining offers a unique investment opportunity that also promises a continuous return over the long term.

    The Company, listed in Frankfurt and on the TSX in Toronto, has a market capitalization of CAD 41.50 million. It was founded by Jack Stoch in the 1980s and has a portfolio of no less than 232 holdings. Among them are widely spread properties with precious metals such as gold, silver, platinum and palladium. In addition, Globex Mining meets the needs of critical metals and minerals, including iron, rare earths, uranium, lithium and cobalt, which are existential to climate change, through nearly 50 holdings.

    The Canadians receive a secured cash flow through royalties. The licensee also bears the exploration risk and commits to ongoing payments in the form of shares or cash as milestones are reached. In addition to the colorful bouquet of holdings, Globex Mining's account contains approximately CAD 25 million in cash or short-term liquidable holdings.

    Due to the large number of holdings, a steady news flow is guaranteed. Jack Stoch provided an update on work by Globex's option partner, Brunswick Exploration Inc., on the Lac Escale lithium property in the James Bay region of Quebec. To date, 12 holes with a length of 1000m have been completed, intersecting significant spodumene-bearing pegmatites in the 12 holes over widths of up to 52m.

    Hensoldt - Profiteer of the Attacks

    The same pattern observed at the beginning of the Ukraine war is now being witnessed by investors following Hamas's major attack on the Israeli border region. Hamas is classified as a terrorist organization by the EU, US, and Israel. In addition to the oil price and the precious metals gold and silver, which are known as crisis metals, defense stocks such as Rheinmetall and Hensoldt AG, based in Taufkirchen near Munich, profit once again.

    Hensoldt has a leading market position in the field of sensor solutions for defense and security applications. As a technology leader, Hensoldt is also expanding its cyber portfolio and developing new products to combat diverse threats based on innovative approaches to data management, robotics and cybersecurity.

    The most recent order comes from the US Coast Guard and involves a volume of USD 10 million. Hensoldt is equipping the National Security Cutter with its proven TRS-3D multimode marine radar. Since the beginning of the collaboration, the Munich-based company has already supplied 12 radars for the US Coast Guard's NSC program.

    The share price jump of more than 12% to EUR 27.66 enabled the stock to break away significantly from the year's lows at EUR 24.54. In its current study, the US bank JPMorgan sees a price target of EUR 32 for the defense company, and the investment rating is "Neutral".


    Hamas' attack on Israel rattled global stock markets. Siemens Energy escaped the downward spiral with a report on restructuring measures at its Gamesa subsidiary. Defense company Hensoldt benefits from the increasingly uncertain geopolitical situation. Globex Mining offers security in uncertain times thanks to its broad diversification, with the intrinsic value of its holdings likely to significantly exceed the current stock market value.


    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.

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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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