Close menu




September 15th, 2021 | 14:03 CEST

JinkoSolar, Defense Metals, Daimler - Sustainability only with rare earths

  • RareEarths
Photo credits: pixabay.com

Rare earths are found in almost all new technologies such as smartphones, e-cars, etc. The leading supplier is China. Rare earths occur more often than one might think, but mining them is rarely economically profitable. Thus, China has a kind of monopoly position. With the trade dispute between the US and China brewing, more people realize that Western countries should seek alternative access to rare earths. If China limits exports, it would quickly lead to shortages. Accumulators or batteries would soon become scarce. Due to sustainability issues, the increased demand can already be seen in the increased prices for rare earths.

time to read: 3 minutes | Author: Armin Schulz
ISIN: JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , DEFENSE METALS CORP. | CA2446331035 , DAIMLER AG NA O.N. | DE0007100000

Table of contents:


    JinkoSolar - Figures at a glance

    Time and again, in Germany, people do not know where to put the solar power they have generated. In some cases, it is even given away to neighboring countries so as not to overload the grid. A remedy could be electricity storage systems that temporarily store the electricity to be released when needed. There are already various projects in Germany in which many e-car batteries, some of them used, have been combined to form a 10-megawatt power storage system. Not only does this extend the service life of the batteries, but once the batteries have done their job, the rare earths they contain can also be recycled.

    The Company has recognized this trend and, on September 2, announced cooperation with battery manufacturer Contemporary Amperex Technology, which will also focus on electricity storage. JinkoSolar presents its second-quarter figures today, which are eagerly awaited. Recently, there has been good news around the group. An agreement was reached with three competitors, agreeing on standards in M10 wafers. The hope is that standardization can increase margins in the long run.

    With the US Department of Energy report, there is hope that the US will invest significantly more than planned in renewable energy, especially solar energy. The share has been very volatile recently and has currently formed a slight downward trend. A closing price above USD 56 could herald a possible trend reversal, but prices below USD 35.64 would accelerate the downward trend. As an investor, one should wait for today's figures.

    Defense Metals - New drilling program started

    Physically, it is not easy to invest in rare earths. One of the options is to buy shares from a rare earth producer. Defense Metals has proven rare earths on its 17sq km Wicheeda Rare Earth Project but is not yet in production. The following data can be drawn from the latest drill results: Mineral resources include approximately 4.9 million tons averaging 3.02% LREO (light rare earth oxide) and an inferred mineral resource of 12.1 million tons averaging 2.52% LREE (light rare earth elements).

    As of September 8, the Company has commenced the next phase of the drilling program. It will build on the latest drill results, and the plan includes 32 drill holes with a total length of up to 5,000m. With the results from this diamond drilling, the Company expects to expand resources to become one of the leading deposits in North America. CEO Craig Taylor said, "Provided the preliminary economics are successful, we are well-positioned to move forward with the further advanced economics."

    The Company expects very positive drilling results. It has already signed a letter of intent with Sinosteel Equipment & Engineering on August 10 to carry out processing tests and plan and develop a possible processing plant. Thus, management is prepared for anything. The stock has been running sideways for about two months. With the new drilling results, momentum could come into the share.

    Daimler - High profitability

    The International Motor Show is behind Daimler. Even if not all of the models presented convinced car enthusiasts, the Company is well prepared for the mobility revolution. More and more models are being electrified. The bottleneck, apart from the lack of chips, is the batteries. To counter this, Chief Development Officer Schäfer wants to present plans for battery factories in Europe in the near future. He left it open with whom a partnership will be sought.

    The figures for the second quarter were convincing. 29% more cars were sold than in the same period last year, and sales increased from EUR 18.9 billion to EUR 28.2 billion. EBIT was over EUR 3.4 billion, following a loss of EUR 1.1 billion in the second quarter of last year. The return on sales was a proud 12.2%. CEO Källenius also sees this double-digit profitability in the future, even if e-cars are currently not yet as profitable as combustion engines.

    The chip shortage is not expected to ease this year, lowering expectations for the upcoming quarterly results. The share has consolidated from EUR 80.41, the 200 moving average mark was defended, and a double bottom was formed in the process, which should be seen as bullish. The next resistance zone starts at EUR 76. The current dividend yield is 1.8%.


    Even if rare earths do not mean much to many people, they are in all kinds of advanced technologies. So there is a need to ensure replenishment. JinkoSolar certainly will not be cut off from supply, as the Company sits at the source in China. Defense Metals could soon become a producer if drilling results are positive. One should watch this stock closely. Daimler wants to secure its own batteries and build factories with one or more partners. As long as rare earths are used in batteries, Daimler should also focus on this topic.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Stefan Feulner on June 22nd, 2022 | 11:22 CEST

    New opportunities in the supercycle - Glencore, Defense Metals, NIO

    • Electromobility
    • RareEarths

    Concerns about a further sharp rise in inflation sent the stock markets into a tailspin in recent weeks. The main reason for the enormous inflation was exploding energy and commodity prices. In addition to crude oil and natural gas, metals important for industry, such as copper and rare earth metals, are currently correcting. This should again offer an opportunity to participate in the supercycles in the long term.

    Read

    Commented by André Will-Laudien on June 7th, 2022 | 13:23 CEST

    Rheinmetall, Thyssen, Defense Metals, Airbus: Fighting the war with these blockbuster shares

    • Defense
    • armaments
    • RareEarths

    The German government has reaffirmed the need for a powerful army and anchored the 100 billion euro special fund in the constitution before the Whitsun recess. The reason why the Basic Law had to be used for this was supposedly due to the budget issue because the red and green members of the government, in particular, do not want the general budget to be diminished by defense spending. Now it is here again, the reversal of the "peace dividend"; for many years, Germany in particular was able to profit from the reduction in defense spending. NATO welcomes the German decisions and now sees Germany as a paying "full partner" again. This also finally puts to rest Trump's demand for Berlin to contribute more to NATO peacekeeping costs. Where are the opportunities for investors now?

    Read

    Commented by Nico Popp on May 23rd, 2022 | 10:36 CEST

    Long on war with Rheinmetall, Defense Metals, BYD

    • RareEarths
    • Defense

    Armaments are booming! As early as 2021, global military spending reached USD 2.113 trillion, according to the Stockholm-based peace research institute SIPRI. That was followed by Russia's invasion of Ukraine and the West's surprisingly united response. Currently, numerous weapons are arriving in Ukraine from many countries around the world. A high-ranking Russian military observer recently even said on TV that almost the whole world was against Russia. At the same time, Sweden and Finland are striving to join NATO. Additional billions for the armament sector are inevitable. We present three stocks that are booming.

    Read