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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.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


08. July 2021 | 11:41 CET

K+S, Theta Gold Mines, Varta - Explosion in construction materials and raw materials!

  • Commodities
Photo credits: pixabay.com

The price rally in essential commodities continues. An acute shortage of building materials has caused some sharp price increases on construction sites. As reported by the Federal Statistical Office, in May 2021, solid structural timber increased in price by 83.3% year-on-year, roof battens by 45.7% and structural timber by 38.4%. The increased prices of wood and steel and industrial metal are driving up construction costs: reinforcing steel in bars was 44.3% more expensive in May 2021, and reinforcing steel mesh cost 30.4% more than a year ago. The main reasons for the rising lumber and steel prices are likely to be rising demand at home and abroad during the Corona pandemic and problems in the supply of raw materials. By comparison, the producer price index of industrial products rose 7.2% over the same period - the most significant monthly increase in 25 years. Who are the beneficiaries of the shortage rally?

time to read: 4 minutes by André Will-Laudien
ISIN: K+S AG NA O.N. | DE000KSAG888 , THETA GOLD MINES | AU0000035701 , VARTA AG O.N. | DE000A0TGJ55


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

André Will-Laudien

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.

About the author


K+S - Like a phoenix from the ashes

Kali & Salz was founded in 1889, making it one of the oldest commodity stocks with German roots. Today, the Company is one of the world's leading suppliers of potash and magnesium products for agricultural and industrial applications. The product range includes specialty and standard fertilizers, various plant care and salt products, and products for animal hygiene and several basic chemicals such as caustic soda, nitric acid and sodium carbonate.

From the perspective of the drastic increases in raw material prices, K+S is currently very well positioned. That is because the K+S Group occupies a market-leading position for potash products in Europe. In the case of fertilizers containing magnesium, the Company is even the global market leader. In 2012, construction work began on the new potash site in the Canadian province of Saskatchewan, in which K+S invested about EUR 3 billion. The expansion took place at a time of weak potash prices and led to a high level of debt; potash prices did not recover until the end of 2020, and so the K+S share price went downhill from 2015.

Currently, however, potash prices know no stopping. New 10-year highs have been marked in the USA, and the rally is even more pronounced in Brazil. While prices in North America are still below the USD 600 per ton mark, this mark has now been broken in the largest South American country. Thus, the price of potash and all fertilizers there has risen drastically within a few weeks; since the beginning of the year, it has now risen by more than 100%.

The K+S share has had an exciting journey since October 2020. The price has broken out to the upside with plus 100% in 9 months. After a short consolidation, this could be just the beginning, given the current inflation in commodities. Therefore, stay invested.

Theta Gold Mines Ltd. - Search for raw materials in South Africa

Now it is here, inflation. For a long time, central banks have been able to keep interest rates low, but will this still be possible in the future? Rarely has there been such an increase in the price of critical commodities and construction materials as in 2021, with disrupted supply chains resulting from mine shutdowns during the Corona pandemic. But where do things go from here?

Australia's Theta Gold owns over 62,000 hectares of gold mining claims in South Africa and a total of 43 historic properties, most of which are located within the Eastern Transvaal Gold Field northeast of Johannesburg. Exploration is directed at high-grade, near-surface gold reef deposits at the Pilgrims Rest and Sabie Gold Fields.

In July, the Company announced the continuation of development work recently commenced following the release of the first underground pre-feasibility study (PFS) at TGME, Pilgrims Rest. The Phase 1 underground project will be completed by Q1 2022. The objective is to upgrade the Rietfontein mine scoping study to a PFS as well. The gravity survey required for this has already been completed in May 2021. Current exploration for ore reserves at Theta Gold is focused on both underground and surface deposits.

Post-validation of historical tunnel samples is required to provide definitive confirmation of project progress. Clean-up work around the mine site has now commenced in preparation for decommissioning the old gold plant. Further metallurgical optimization work is still required before the process design can be finalized. A safety expert works on-site to develop a health, safety and environmental management system for future operations.

The Theta Gold share is actively traded in Frankfurt. As the resumption of gold production may be on the agenda as early as 2022, an initial position should be established.

Varta - New site in Nördlingen brings fantasy

Varta is also highly dependent on raw materials for its production because Varta is an expert for different battery systems such as wireless headphones, batteries for drills and robotic lawnmowers, power for insulin pumps, and measuring devices in the industry.

And batteries for electric cars are also soon to roll out of the factory. To this end, the Company has opened its new lithium-ion cell factory at the Nördlingen site. The new building with a production area of 15,000 square meters is an important step for Varta in its growth strategy. With the new factory, the Company now has a total production area of 60,000 square meters and thus the ideal infrastructure for further growth. Customer orders from German premium manufacturers have already been received, and development partnerships are now being launched.

Varta is in a tough technology competition. If you want to be at the forefront, you have to keep presenting new and better batteries. Of course, this also requires the political will and the vision to keep innovative power and technology in Europe, especially in Germany as an industrial location.

After its consolidation in May, the Varta share has picked up speed again and rose to a high of EUR 145. From a chart perspective, the all-time highs at EUR 160-180 are now on the agenda again. Currently, the share price has entered a holding pattern again. The market is probably expecting further battery news. Overall, the valuation of the Varta share is high - but the opportunities are also extraordinary.


An investment in commodity and industrial stocks is very cyclical and fraught with risk. Those who invest in dynamic stocks like K+S or Varta are exposed to high trend dynamics. Theta Gold Mines is still in the early stages of development, but their history makes the projects very promising.


Author

André Will-Laudien

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.

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.


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19. October 2021 | 13:44 CET | by Fabian Lorenz

Barrick Gold, Standard Lithium, GSP Resource: Commodities booming

  • Commodities

Copper, lithium and oil are just a few examples of commodities whose prices are going through the roof. The shares of the producers of these commodities are benefiting as a result. In addition, there is now often a takeover fantasy. This applies, for example, to Standard Lithium. The US explorer has now also published positive data for its project. It also applies to GSP Resource. At least as far as drilling results and takeover fantasy are concerned. The share price, on the other hand, still has room for improvement. The same applies to Barrick Gold. The Q3 figures were convincing, with the gold company earning brilliantly on every ounce, but the shares are trading close to the year's low.

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BioNTech, Varta, Sierra Grande Minerals - Is the countermovement coming?

  • Commodities

The BioNTech share was under intense pressure in the past trading week. But even at the start of the week, the bulls could not prevail with a countermovement. There is also good news from the new German biotech star. Ripe for a rebound are also the shares of Varta and Sierra Grande. At Varta, the presentation of Apple's new Airpods could herald a share price recovery. Sierra Grande is suffering from weak precious metal prices. The Company has just published positive drilling results. Investors could soon look forward to rising prices for all three shares.

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Sierra Grande Minerals, Barrick Gold, Sibanye Stillwater - Tempting valuation levels

  • Commodities

Patience is a virtue. Especially on the stock market, investors are often required to be patient. Why do rising prices take so long to materialize, even though the relevant facts are already on the table? One or the other investor who has invested in commodity shares has undoubtedly experienced this or a similar situation. But those who take a longer-term view and make the proper sense of the relevant framework conditions that determine supply and demand will be successful. Precious metals have proven to be a protection against inflation over long periods of time. Various raw materials such as copper and lithium are experiencing rising demand as a result of electromobility. These three stocks offer opportunities.

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