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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".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


04. June 2021 | 08:11 CET

Lufthansa, Almonty Industries, Volkswagen VZ: Fresh starts and takeover fantasies

  • Tungsten
Photo credits: pixabay.com

It starts again. More and more companies are leaving the crisis behind. Restaurants are full even with mandatory testing, carmakers are picking up where they left off before the crisis, and airlines are once again enjoying more vacationers and business travelers. With the economy making a comeback, certain companies are in particular focus. Others reveal great opportunities only at a second glance. We present three stocks.

time to read: 3 minutes by Nico Popp
ISIN: DE0008232125 , CA0203981034 , DE0007664039


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


Lufthansa: What is next?

Deutsche Lufthansa wants to expand its long-haul services at Munich Airport again. Shareholders and staff alike should be pleased - after all, this is a sign of normality returning. The crane airline's finances could also soon return to pre-crisis levels. During the pandemic, the German government made a silent partnership contribution of EUR 5.5 billion, presumably saving the Company from bankruptcy. In the meantime, Lufthansa is planning a capital increase to at least partially redeem this silent participation. It is not yet clear whether the state's share will actually fall after the capital measure. Most recently, Finance Minister Scholz signaled the federal government's willingness to underwrite Lufthansa's capital increase. So at least in the event of insufficient market demand, the federal government is likely to stand by.

The Lufthansa share was one of the biggest winners of the past few days - in just five trading days, the share climbed by 8.8%. But in the long term, things continue to look rather bleak: Within three years, the value has lost around half. Whereas Ryanair's competitors have been clamming up during the crisis and paid an extremely favorable price to purchase new aircraft of the type formerly known as the 737b MAX, Lufthansa has kept a low profile. It is not yet clear to what extent this attitude is costing Lufthansa market share. But the fact is that the pandemic has changed customer behavior. Many flights that were once taken for granted are now up for grabs. Whether airlines that the state has rescued in almost every country can score points in this environment remains to be seen. After all, the bailouts are likely to have encouraged overcapacity. Above EUR 11.50, the Lufthansa share may have short-term potential. However, the share is not a sure-fire winner.

Almonty Industries: Gigantic tungsten mine celebrates topping out ceremony

One Company that benefits indirectly if more aircraft are built is Almonty Industries. The Company mines tungsten, a unique metal in its properties and is used wherever high heat is generated. In addition to aviation, these include classic light bulbs and medical technology or drill heads in mining. The entire tungsten market is strongly dominated by China. After the country cut its production volume in the second half of 2020, prices climbed. Almonty Industries is one of the few tungsten alternatives outside China. In addition to a producing mine in Portugal, Almonty Industries is developing the Sangdong mine. This mine is the largest tungsten project outside China, located in South Korea. The mine has the potential to provide 50% of the world's tungsten supply outside of China.

The Company's recent activities also show that this could soon be the case. At the end of May, the topping out ceremony was held in Korea. Production is now to increase step by step. Almonty Industries is financed by the Kreditanstalt für Wiederaufbau (KfW) and has an important anchor shareholder in Deutsche Rohstoff AG. The Company is working on a listing on the stock exchange in Australia, which could give the share new impetus, coupled with the start of production. Although the share is currently trading near its all-time high, Almonty is still only valued at around EUR 155 million. Given the size of the Sangdong mine and the Company's other projects, significantly higher valuations could be justified.

Volkswagen VZ: What does the entry into the commodities business bring?

The market has also been attributing higher valuations to Volkswagen for months. The automaker announced an e-car offensive months ago. Most recently, the next hammer: Volkswagen wants to float its battery division on the stock market independently. At the same time, the Company is toying with the idea of securing its access to critical raw materials for battery production. The thrust is clear: The Company wants more of the pie and to be less dependent on countries like China, which are ahead in many strategic metals. Volkswagen is in good company with its strategy. Tesla is already securing raw materials and is involved in a nickel mine in the Pacific paradise of New Caledonia.

The commitment of companies like Volkswagen and Tesla is understandable: Large commodity companies are still reluctant to invest in certain raw materials, such as lithium. If batteries cease to be the key technology for the automotive industry, skeptics say overcapacities could arise. But the entry of large corporations into a completely new field is also challenging and associated with risks. More likely, therefore, are equity investments and joint ventures with commodity companies. Volkswagen shares currently have a tailwind and are heading for the highs of April. The outlook remains promising. However, commodity companies could also benefit indirectly from rising valuations at VW and Co. - namely, if large industrial companies go on a buying spree with their own highly valued shares.


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:

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LPKF Laser, Almonty Industries, Wacker Chemie - Brilliant growth

  • Tungsten

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Almonty Industries, Infineon, VW - This is just the teaser - What is next?

  • Tungsten

From A for antimony to V for vanadium, the European Union's list of critical raw materials now includes 30 materials, including lithium, cobalt, rare earths and tungsten. These raw materials are characterized by low availability and high economic importance. Many key European industries rely on these raw materials, such as the automotive, steel, aerospace, IT, healthcare, or renewable energy sectors. Demand is increasingly being driven by new products and technologies such as electromobility, digitalization and the energy transition. The supply cannot keep up with this. Bottlenecks are emerging, which, among other things, are leading to higher prices for the critical raw materials and posing major challenges for demand-side industries. How can investors position themselves successfully?

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09. September 2021 | 10:42 CET | by Fabian Lorenz

SMA Solar, Standard Lithium, Almonty Industries: Between profit warning and supercycle!

  • Tungsten

It is not only semiconductors that are in short supply, but also numerous industrial raw materials. The situation is only getting worse. In the case of lithium, demand is expected to increase fivefold in a few years. Tungsten is also in demand, and China is an unreliable quasi-monopolist. As a result, raw materials are in short supply, and prices are rising. More and more companies are suffering as a result, like Germany's SMA Solar. The inverter manufacturer had to cut its forecast and analysts promptly reduced their price targets. On the other hand, some companies are benefiting from the situation. Highflyer Standard Lithium is one of them. Due to positive industry and company news, the share is accelerating again. Almonty Industries is also facing exciting months.

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