Menu

Recent Interviews

Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


13. September 2021 | 10:41 CET

K+S, Deutsche Rohstoff, Barrick Gold: How investors profit from inflation

  • Oil
Photo credits: pixabay.com

Prices are rising and rising! In August, inflation rose more sharply than at any time in the last 28 years. It rose by an average of 3.9% compared with the same month of the previous year. The main price drivers were food and energy commodities. But other products and services are also becoming more and more expensive. Here is how investors can take this trend into account in their portfolios.

time to read: 3 minutes by Nico Popp
ISIN: K+S AG NA O.N. | DE000KSAG888 , DT.ROHSTOFF AG NA O.N. | DE000A0XYG76 , BARRICK GOLD CORP. | CA0679011084


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview

 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


K+S: Hopeful takeover fantasy?

When it comes to rising food prices, many investors immediately think of the K+S share. The fertilizer specialist looks back on turbulent months. At first, the share was seen as a never-ending tale of woe. But then the sale of a subsidiary in the USA succeeded and the share price breathed a sigh of relief. The share has now been moving sideways for several months. Recently, however, K+S has once again become the focus of investors: takeover speculation arose after the BHP Group announced its intention to invest in potash projects on a large scale.

As K+S still suffers from a low equity ratio and the share price has stagnated for some time, the Company could become the focus of potential buyers. To what extent the speculation will become a reality, however, is unclear. Due diligence measures often drag on for a long time, and the share price does not gain momentum despite the vague interest in a takeover. However, the existing fantasy should support the share. Added to this is inflation, which is picking up speed worldwide. K+S is no longer a great opportunity, but the stock still passes as a solid investment with price fantasy.

Deutsche Rohstoff AG: Inflation investment from Mannheim

Deutsche Rohstoff AG is a company that benefits directly from rising energy commodity prices. The Mannheim-based Company successfully produces oil in the US and has avoided all the adversities surrounding the oil price collapse and the Corona pandemic in recent years. On the contrary, the Company even purchased production areas at particularly favorable conditions during this market phase. In the meantime, oil is trading well above the USD 70 mark, and the project acquired at that time is probably worth more. Most recently, Deutsche Rohstoff AG made further purchases and acquired 30,000 net acres, also in Wyoming. The deal is expected to close by the end of October. Specifically, this is existing production with the prospect of growth.

In addition to the oil business, Deutsche Rohstoff AG is also focusing on investments. It holds shares in companies involved in the mining of gold and tungsten. The latter metal is particularly interesting and has properties that no other element can offer, such as high heat resistance. Specifically, Deutsche Rohstoff has a stake in Almonty Industries. This Company is bringing the largest tungsten mine outside China into production in South Korea and promises a life of more than 20 years. Deutsche Rohstoff's numbers are also in order: in 2021, the Company is targeting an EBITDA of EUR 57 to 62 million. Analysts at First Berlin currently see a price target of EUR 24. The business magazine CAPITAL also recently took a positive view of the share.

Barrick Gold: Investors are getting out

Things are currently looking worse for gold giant Barrick Gold. The Company continues to be unable to convince investors of its merits. Although the mood in the gold sector is positive, the share has lost 35.5% in the past year. In August, billionaire Stan Druckenmiller, who held shares in Barrick with his family office, had enough - the investor and self-declared gold bull got out in the media. Remaining investors have been waiting for a long time for a liberation blow. However, this has not happened for months. The share is therefore not very interesting at the moment.


The example of Barrick Gold shows that a big name is no guarantee for successful business. Size is often a hindrance in the commodities market. This was also the case with K+S, which suffered from the market and less lucrative investments for a long time. Deutsche Rohstoff AG, on the other hand, is much more agile, acquires stakes in promising raw materials and can act quickly when market opportunities arise. German investors also have the advantage that the Company is based in Mannheim, and there is no language barrier.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

16. November 2021 | 12:58 CET | by Stefan Feulner

Nordex, Saturn Oil + Gas, TotalEnergies - Good numbers, bad numbers

  • Oil

While the third-quarter figures of many companies in the renewable energies sector were disappointing, oil companies were able to profit from rising oil and natural gas prices. Even though the recently concluded World Climate Conference resolved to move away from fossil fuels, experts believe that oil demand is likely to continue, if not increase, in the coming decade.

Read

09. November 2021 | 13:17 CET | by Fabian Lorenz

Nordex, Gazprom, Saturn Oil + Gas: Rising oil and gas price drive

  • Oil

Leading politicians and industry leaders are meeting in Glasgow until November 12 for the climate conference. So far, however, there has been nothing more than "hot air" to report. Not only climate activists are disappointed. Even German Development Minister Gerd Müller criticized the interim results. "The emerging resolutions are not enough to achieve the 1.5-degree target," the CSU politician told Redaktionsnetzwerk Deutschland. There is also little news on the expansion of renewable energies. It is therefore not surprising that the oil price is picking up again. With a rise to USD 83.78, the price for the Brent variety has ended the correction. There is also no relief in sight for the price of gas. The shares of Gazprom and Saturn Oil & Gas are benefiting from this. But Nordex is also attracting attention with new orders.

Read

08. November 2021 | 11:28 CET | by Stefan Feulner

Deutsche Rohstoff, Saturn Oil + Gas, BP - Rise to hysteria

  • Oil

Energy prices in Germany continue to rise, driving inflation beyond the 4% mark. Heating oil alone increased in price by around 80% within a year. However, there is no end in sight to the rise. The supply bottleneck and immense demand are likely to push oil prices above the psychological USD 100 mark in the next few years. Analysts at JPMorgan even see a new supercycle approaching the world and renewed their forecast to an oil price of USD 190 in 2025.

Read