01. September 2021 | 13:21 CET
IBU-tec, Meta Materials, Standard Lithium, Orocobre - Materials for the Super Battery!
The demand exceeds the quantity! Whether e-mobility, aircraft technology or renewable energies, all high-tech segments of industry require raw materials and processed materials in ever-increasing amounts. Currently, the problem lies in procurement. The relevant tonnages cannot be mined in the world's mines because many projects are only at the beginning of development or are operating at their limit. A lithium mining site needs about 5 years of gestation time. It is about 7 years for copper with high 3-digit million amounts required as basic investment capital. Given the global conflicts, politicians are at a loss regarding how medium-term availability can be ensured, which ultimately means that the price is the deciding factor.
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ISIN: IBU-TEC ADV.MATER. INH.ON | DE000A0XYHT5 , Meta Materials Inc. | US59134N1046 , STANDARD LITHIUM LTD | CA8536061010 , OROCOBRE LTD | AU000000ORE0
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
IBU-tec - Confirmation of forecasts for 2021
IBU-tec chemicals are intended for use in cathodes of LFP battery cells, which are used, among other things, in the field of e-mobility, in special vehicle construction or stationary energy storage systems. The Company is one of the few in Germany that specializes in this segment. Earlier this week, there were key data for the 1st half of 2021. The Weimar-based Company reported a slight increase in sales of EUR 20 million compared to EUR 14.5 million in the same period last year. Adjusted EBITDA was a positive EUR 2 million, compared to a loss last year.
Meanwhile, the outlook for 2021 was confirmed. For the full year, IBU-tec expects sales of between EUR 37 and 39 million, which it aims to increase to EUR 80 to 100 million by 2025 according to current expectations. The EBITDA margin is expected to be between 17 and 19% in 2021 and rise to 20% by 2025. The main growth driver here is the Company's battery material, which will be offered on the market from Q4-2021. Due to the already high demand for the product and already concluded sales cooperations, IBU-tec will start to produce in stock from the coming quarter and further expand its inventory until the end of 2021.
IBU-tec shares reacted cautiously to these announcements. It had reached an all-time high of EUR 60.40 in July and subsequently corrected to EUR 46.50. However, the 12-month performance of +290% is impressive. Overall, the figures were in line with expectations, collect the value calmly between EUR 40 and 48, the real push will still take some time.
Meta Materials - The key to innovative solutions
A new expert in high-tech materials is Meta Materials Inc (META®) from Nova Scotia, Canada. The Company produces a range of highly functional materials and nanocomposites for diverse technical applications. The Company's proprietary technology platform includes three core competencies: holography, lithography, and wireless sensing with strong IT networking and artificial intelligence (AI) embedding.
With the establishment of a highly endowed scientific advisory board, Meta Materials expects to support its innovation and investment strategy. The new members are Dr. Andrea Alu, Dr. Mark Brongersma and Dr. Nader Engheta. They will help the Company protect existing scientific innovations and expand the development of new technologies. Engaging with the scientific community is essential in this process. META's Open Innovation program aims to lead projects and identify strategic prospects for rapidly emerging scientific and technological trends. Target industries include energy technology, aerospace, defense, and automotive. Metamaterials are a new class of functional materials developed based on unique patterns or structures.
META® has held a broad and growing portfolio of intellectual property, patents and trademarks since its inception. The Company's sales are still small, but as is common in the technology industry, it takes several years of development before a blockbuster emerges. However, the current market capitalization of over USD 1.1 billion already gives investors a taste of the value of META® technologies in the future.
Standard Lithium or Orocobre - Where to invest smartly?
Two other companies in the lithium sector are currently making news. They are Standard Lithium from Canada and Orocobre from Australia. Standard Lithium is implementing a significant lithium project in the US state of Arkansas. The main investments are not planned until 2022 to 2024. After the impressive rally and the subsequent correction, the Company still has 460% share price gain on the clock after 12 months, and capitalization is at a high EUR 640 million. The advanced praise is enormous, but a project at such an early stage can still be good for one or two negative surprises. The share has been falling sharply for a few days. It is now trading at a horizontal line of EUR 4.42. If this line is breached, there will be pressure on the share price. Should this be broken, the 50% correction target at EUR 3.85 pushes itself into the foreground. The share has really strong support between EUR 2.65 to 3.15.
Orocobre Limited is a producer of lithium chemicals with sites in Australia and Argentina. It recently completed a USD 4 billion merger through the acquisition of Galaxy Resources. The combined company, to be named Allkem, is on track to become the world's fifth most valuable producer of the coveted raw material for electric batteries. The current half-year figures still apply to the old structure. Total production increased by 6% to 12,611 tons of lithium carbonate, and at the end of the quarter, Orocobre had cash and cash equivalents of USD 258.3 million on a consolidated basis. All in line with expectations.
Lithium prices, which had fallen sharply since 2018 due to supply exceeding demand, have rebounded strongly this year. But the two companies are fundamentally different. Standard Lithium will not be operational for years, and Allkem can supply the market today. In a direct race, Allkem (still listed under Orocobre) would therefore be preferable.
The investment theme of raw materials is very interesting, especially in the field of battery materials. IBU-tec is well on its way and still valued low. The mentioned lithium companies are already subject to an advanced valuation, which can also be significantly lower at times. High-tech materials in a larger context can be found at Meta Materials. The share is very volatile but speculatively interesting.