Close menu

February 22nd, 2023 | 13:20 CET

K+S, Tocvan Ventures, Rock Tech Lithium - Shares with doubling potential

  • Mining
  • Lithium
  • Gold
  • fertilizer
Photo credits:

On February 22, the meeting of the US Federal Reserve FED will take place. The results are eagerly awaited, as economic data have recently been mixed and difficult to interpret. The Consumer Confidence Index recently climbed significantly. However, since inflation has fallen less than expected, this could point to another interest rate hike. Rising interest rates are bad for the equity markets, as some investors may prefer to put their money into US government bonds. Regardless of the news, some stocks offer great potential at current levels. We take a closer look at three of these stocks today.

time to read: 4 minutes | Author: Armin Schulz

Table of contents:

    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


    K+S - Well positioned for 2023

    Potash and salt producer K+S is the largest European producer of potash- and magnesium-based products and the fourth largest worldwide. In recent years, it has focused on the production and marketing of special fertilizers and salt for chemical use. Last year, K+S secured 90% of its natural gas requirements in Europe at an average of EUR 0.05 per kilowatt hour. Analysts expect net income of about EUR 1.4 billion for 2022, corresponding to earnings per share of about EUR 5.40. The price-earnings ratio of K+S is thus only slightly above 4.

    However, K+S has maintained its position in the market through its smart strategic direction and innovation capabilities. Indeed, in recent years, K+S has invested in technology and innovation to make its operations more sustainable and efficient. One example is the development of new processes for recovering nutrients from waste products. This not only helps to improve the environmental balance sheet but also offers new business opportunities for the Company.

    The Group will present its annual figures on March 15. Last year, management repaid bonds ahead of schedule, bought CO2 certificates and presented plans for the Werra plant to make it fit for the future. As neither Russia nor Belarus will likely become active on the world market again in the coming years, good money will continue to be earned in the potash sector. Fundamentally, the share is too cheap. Currently, one share costs EUR 21.64. As a shareholder, it will be interesting to see whether the Company will raise its dividend.

    Tocvan Ventures - On the way to becoming a gold producer

    The Canadian Tocvan Ventures has two gold-silver projects in the Mexican state of Sonora. El Picacho is the newer project and covers 24 sq km. It is located just 18 km from the San Francisco Mine, which has over 3 million ounces of gold. In January, the Company released the first results from its drilling program. A total of 10 drill holes with a total length of 1,075 m were drilled on the San Ramon property. Up to 7.6 g/t gold and 9 g/t silver were discovered. The historical gold mineralization was confirmed. In addition, even better mineralization was uncovered at depth. The project has multimillion-ounce potential, according to the Company.

    Much further along is the Pilar project, where more than 23,000 meters have been drilled since 2020. Here, 33.4 g/t gold and 1,090 g/t silver were found at peak. Much of the drilling has been in the "Main Zone," but parallel zones of mineralization have also been identified in step-out drilling. On January 24, the Company announced that up to 1,000 tonnes of oxide gold material will be sampled and heap leach tested at a private mining operation. Data from this bulk sample on the recovery rate and expected gold grade, which to date has been 90% for gold and 84% for silver, will then be used to initiate the permitting process for the development of the mine and processing plant.

    On January 30, the first tranche of the private placement was completed. A portion went to a new strategic investor, but the investor was not named. A total of 441,713 shares of 625,000 were placed at CAD 0.52 per unit. In addition, subscribers received half a warrant per share with an exercise price of CAD 0.62 within 18 months. This raised approximately CAD 230,000, which will be used primarily to accelerate bulk sampling and metallurgical test work at Pilar. More detailed information can be found at The stock is currently trading for CAD 0.50, below the private placement price. If the explorer becomes a gold and silver producer, the stock will have to be revalued.

    Rock Tech Lithium - Construction in Guben can start soon

    The lithium market is getting hotter and hotter. Car manufacturers are trying to prepare for the future. General Motors recently invested USD 650 million in Lithium Americas, receiving about 25% in return. According to one report, Tesla is looking into acquiring Sigma Lithium. Rock Tech Lithium has yet to be targeted by automakers, even though Mercedes-Benz has signed an offtake agreement. Yet the Company has everything needed for the future. Its own mining project, for which the pre-feasibility study has already been completed, and the plan for the first lithium converter in Europe.

    Recently, the State Environmental Agency gave early approval for the construction in Guben. That means the Company can start with the first work on-site, and the construction permit is within reach. It should be granted around the middle of the year. The Company is also active in the zero-waste sector. Rock Tech, GP Papenburg and Schwenk have signed a memorandum of understanding to cooperate in marketing lithium production byproducts. The byproduct aluminosilicate is to be used in the cement industry, reducing carbon emissions. If successful, offtake agreements could be signed between the parties.

    There is also positive news at the Georgia Lake mining project. Results from the 2022 drilling program are in, and 3 new deposits have been identified. Currently, exploration continues to expand the asset significantly. Despite the good news, the share has consolidated from CAD 3.60 to CAD 2.82, bringing the market capitalization to around CAD 263 million. Comparing Rock Tech Lithium to Lithium Americas, we see that Rock Tech has a planning edge. Production will start in Guben at the end of 2025 when construction is still underway in the USA. So in comparison, Rock Tech Lithium is clearly undervalued. Once the financing of the converter is in place, the share has a lot of catch-up potential.

    Regardless of the interest rate decisions, there are exciting opportunities in the stock market. Just one piece of news can change everything. K+S will continue to earn well in the coming year and is currently undervalued. If Tocvan Ventures succeeds in becoming a gold producer, the stock must be revalued. Rock Tech Lithium is active in a hot market environment. Even without the entry of a strategic investor, the share should jump significantly as soon as the financing of the converter is in place.

    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 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

    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 Fabian Lorenz on July 23rd, 2024 | 06:50 CEST

    70% with Evotec shares? Caution with BASF? Almonty Industries tempts investors to get in!

    • Mining
    • Tungsten
    • hightech
    • chemicals
    • Biotechnology

    Will BASF miss market expectations in the second half of the year? Analysts believe so. The chemical giant's revenues are already expected to fall in the second quarter. So, should one sell the shares now? The Evotec share was bought yesterday. Analysts believe that the profit warning from Sartorius should not be overestimated and see over 70% upside potential. However, patience is required. The Almonty Industries share also appears too favourable. The commissioning of a huge tungsten mine is imminent, and not only companies such as Taiwan Semiconductor and Rheinmetall need the critical metal for their high-tech products. So, when will the share break out?


    Commented by Armin Schulz on July 23rd, 2024 | 06:45 CEST

    Plug Power, Saturn Oil + Gas, RWE - Which energy belongs in the portfolio?

    • Mining
    • Oil
    • renewableenergies
    • Energy

    The debate about the ideal energy source for the future focuses on hydrogen, oil, and renewable energies. Despite its controversial reputation, oil remains a significant energy source due to its high energy density and well-established infrastructure. Technological advances are also reducing the negative environmental impact. However, renewable energies and hydrogen also offer significant advantages, such as sustainability and low emissions. However, there is a lack of infrastructure to fully exploit the advantages of these technologies. We examine one candidate from each sector and where they stand today.


    Commented by André Will-Laudien on July 22nd, 2024 | 07:00 CEST

    Despite the super disaster with CrowdStrike, 100% returns are possible with TUI, Lufthansa, Prismo Metals and BayWa!

    • Mining
    • Commodities
    • PreciousMetals
    • IT
    • Software
    • Travel

    The CrowdStrike outage shows us just how dependent the world has become on multinational corporations from America. Within hours, everything came to a standstill - nothing worked at airports, supermarkets, and banks, and some hospitals had to postpone operations. Does this make those responsible think about what urgently needs to be changed? In addition to a completely dependent situation in the IT sector, Europe, in particular, is in a pretty poor state regarding raw materials. Chancellor Scholz is looking for resources in Serbia, a country that would like to join the EU but is closer to the aggressor Vladimir Putin. Can Brussels overlook such facts and transfer billions more to Ukraine at the same time? Europe's needs are obviously manifold, and the most urgent need is likely to master the energy transition to prevent industry migration to more favourable jurisdictions. Investors are currently facing enormous challenges. We provide some ideas for a 100% portfolio.