Close menu




February 15th, 2023 | 11:40 CET

Is Tesla hunter BYD almost 100% in? Has the Nel share run hot? When will Manuka Resources jump on?

  • Mining
  • Gold
  • Silver
  • Electromobility
Photo credits: pixabay.com

The Nel share has performed amazingly well in recent months. From mid-October to early February, it increased by around 70% to EUR 1.70. Since then, the stock has been taking a well-deserved breather. Will the rally continue? According to Goldman Sachs, the air is getting thin. But there is also positive news. There is also that of BYD. The Tesla hunter is building another battery factory, and analysts are raising their estimates after solid figures. Manuka Resources wants to present strong drilling results. For this purpose, a new drilling program near an existing mine has now been approved. In addition to gold and silver, high-grade copper deposits, zinc, and lead are expected. In addition, a complete reassessment is still possible.

time to read: 5 minutes | Author: Fabian Lorenz
ISIN: TESLA INC. DL -_001 | US88160R1014 , BYD CO. LTD H YC 1 | CNE100000296 , NEL ASA NK-_20 | NO0010081235 , Manuka Resources Limited | AU0000090292

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

     

    Manuka Resources: Is the share making a jump?

    As with so many commodity companies, the share of Manuka Resources is struggling despite high gold prices. But operationally, the Australians are stepping on the gas. In the past fiscal year (ending June 30), the Company generated revenues of AUD 53.5 million and a positive operating cash flow of AUD 8.9 million. In order to expand, a capital increase was completed at the end of 2022. How the new funds will be used has been explained in the past few days. The new drilling program is focused on the Cobar properties to increase the inventory of indicated mineral resources significantly. As a result, more than 24,000 drill holes are expected to be completed over the next two years. Exploration near the existing mine is a priority because of the opportunity to delineate indicated mineral resource targets. Manuka CEO Dennis Karp said, "The results of the strategic exploration review indicate significant resource potential on our Cobar properties, particularly with respect to silver and gold near the mine, but also high-grade copper deposits as well as zinc and lead. Since our production infrastructure at Wonawinta, with a capacity of over 1 million tonnes per year, can produce both gold and silver, the deposits discovered nearby are logically priority targets. Cobar is a high-yielding region, particularly for polymetallic deposits. The planned drilling will provide a wealth of data to enhance our understanding of the structural conditions critical to delineating additional precious metal and polymetallic deposits on our property."

    Manuka's projects in detail: The Mt. Bobby gold project was acquired in 2020. It is one of the historically most prosperous gold mines in Australia. At the time, 500,000 ounces of gold were mined at an average grade of half an ounce per ton of ore. Manuka originally planned to produce 24,000 ounces of gold. But the resource could be much more productive than thought. At the Wonawinta silver project, the resource estimate is already available. It comprises 51 million ounces, and with the start of production, Manuka would become one of Australia's largest silver producers. A processing plant is already in operation and will initially be fed with historic tailings with a volume of 515,000 tons.

    In addition, Manuka's third project, South Taranaki Bight (STB), could even lead to a complete revaluation of the Company. The project off the coast of New Zealand was only taken over towards the end of 2022. It contains iron sands with vanadium titanium, and magnetite. Vanadium is a critical mineral and helps improve energy storage and battery durability. The potential is great: with a JORC resource of 3.8 billion tons and a vanadium content of 0.5%/t, Manuka could become the world's third-largest vanadium producer with a 15% market share. Revenue estimates are around £55 million per annum. Manuka Resources' market capitalization is under AUD 45 million.

    Nel: Share running hot?

    After an impressive 70% rally, Nel now weighs in at an impressive NOK 27 billion. The share price of the Norwegian hydrogen specialist has corrected by around 10% in recent days. The recovery went nevertheless too fast for Goldman Sachs. The analysts have reduced their recommendation from "Outperform" to "Neutral". The price target was also cut from NOK 25 to NOK 20. The share is currently trading at NOK 17.67, compared with just over NOK 10 in October 2022. While the analysts stressed that the Company's long-term prospects are still right, the stock has run too hot for them. And looking at the history, skepticism is definitely warranted. Like industry peers such as Plug Power and ITM Power, Nel's fiscal 2022 was marked by supply chain issues, slower growth and higher losses. While orders like those from HyCC have been reported again this year, order intake is not the industry's problem; efficient execution is. To HyCC, Nel subsidiary Nel Hydrogen Electrolyser AS will supply electrolyzer equipment of HyCC with a volume of 40 MW and a value of about EUR 12 million. HyCC is planning a production plant for sustainable aviation fuel (SAF) in the Netherlands. It will be produced from industrial by-products and residual streams, such as used cooking oil. The energy needed to run the plant is to come from green hydrogen. Interested parties should mark February 28 in their calendars. Nel will report on its fourth quarter and full-year 2022 results on this day. In the past, this often resulted in stronger share price movements.

    BYD: On the verge of doubling?

    From the perspective of HSBC, the BYD share is anything but hot. The analysts have raised their price target to HKD 452. Currently, the shares of the Chinese Tesla chaser are trading at HKD 238. HSBC thus trusts the BYD share to almost double. Looking ahead, HSBC remains optimistic for BYD regarding revenue and earnings growth. It says this is based on the group's competitive product portfolio in electric and hybrid vehicles. Through increasing economies of scale, they expect margins to expand steadily.

    For these economies of scale in the future, BYD is investing massively in the present. Most recently, the planned construction of another battery factory was made public. The new plant in Zhengzhou, China, is to have a capacity of 40 GW. The blade batteries are to be manufactured by BYD, and the investment volume is to be around EUR 1.1 billion. This is already the third gigafactory that BYD has announced in just a few months. Production of 15 GW is planned in Xuzhou, and 20 GW in Wenzhou. At the same time, BYD is pushing the sale of its e-cars abroad. In addition to India, the focus is on Europe. It will be exciting to see how the vehicles will be received in this country.


    The Nel share has run hot after the strong price increase. In addition, there is still no confirmation that operations are running smoothly again. Therefore, February 28 will be important. At Manuka, investors can look forward to a regular news flow in the current year. If this is positive, it should only be a matter of time before the share starts to rise. Not only are BYD's rising sales and profits impressive, but so is its investment pace. However, the tensions between the US and China should not be underestimated as a risk for the stock.


    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.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by André Will-Laudien on March 28th, 2024 | 09:00 CET

    Attention: Uranium despite the energy transition! Does this fit together? Plug Power, Nel ASA, Kraken Energy and Renk Group in focus

    • Mining
    • Uranium
    • Energy
    • renewableenergies
    • nuclear

    It feels like a paradox. The EU aims to be largely climate-neutral by 2050. The main focus is on mobility, heat and energy generation. As a core country of the EU, Germany is taking the political lead in the necessary measures. While France, Poland, Finland and the Czech Republic are actively expanding nuclear energy, this form of energy is virtually taboo in many other countries. Germany has been able to increase its renewable energy sources to over 50% with billions in subsidies at the expense of the taxpayer and the price of energy. Yet, Berlin still has to buy cheap electricity from abroad and also use coal and gas to stabilize the grid. It all sounds kind of crazy, but it gets really interesting when the wind isn't blowing and the sun is only to be found behind the clouds. Which shares should be considered in this mixed situation?

    Read

    Commented by Juliane Zielonka on March 28th, 2024 | 08:50 CET

    Rheinmetall, Almonty Industries, Bayer AG - Arming up for defense with these stocks

    • Mining
    • Tungsten
    • armaments
    • Pharma

    The European Union is providing the defense group Rheinmetall with a total of EUR 130 million for ammunition production. The German company is one of six EU projects that are being funded in a special program to stockpile enough artillery pieces and secure supply chains. Here, Almonty Industries comes into play. Almonty specializes in the exploration, extraction and production of tungsten in two European countries, including Spain and Portugal. Tungsten is used in particular for ammunition. Almonty Industries also operates five mining projects, one of which is the largest tungsten project in South Korea. The increasing demand for the critical metal will soon cause the price of tungsten to skyrocket, as defense is becoming increasingly important for the countries and continents involved in the face of geopolitical tensions worldwide. Defense is also a topic at Bayer. The cancer drug Nubeqa supports the body's immune system in the fight against prostate cancer. Following the recent pipeline flop with Asundexian, the drug has great blockbuster potential and could bring billions of euros into the Company's coffers. Read more about why this is so important for Bayer at the moment.

    Read

    Commented by Fabian Lorenz on March 27th, 2024 | 08:45 CET

    Shares in Focus: TUI, Rheinmetall, and Defense Metals with good reasons for price increases

    • Mining
    • RareEarths
    • armaments
    • travel

    The TUI share was one of the top performers on the German stock market yesterday. The EUR 7 mark was exceeded, making things exciting on the chart. Analysts expect significantly higher prices for the tourism group. Rheinmetall shares are among the top performers of the year. An end to the price increase is not in sight. The armaments group has announced a new order worth billions. The manufacture of armaments, aircraft, cruise ships and numerous other high-tech products would not be possible without rare earths. However, most of these come from China and Russia. This makes the Defense Metals share interesting. The Company is making great strides with its rare earths project in Canada. The share should also benefit from this progress.

    Read