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Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


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


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:

08. June 2021 | 07:47 CET | by Stefan Feulner

NIO, Almonty Industries, Daimler - The power struggle escalates

  • Tungsten

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Almonty Industries, ThyssenKrupp, Klöckner & Co.- Indispensable raw materials!

  • Tungsten

According to the EU, tungsten is one of the most critical raw materials globally in terms of economic importance and procurement risk. The chemical element has the highest melting and boiling point and is therefore used in many critical industrial sectors. The main application of tungsten is in the form of tungsten steel - a high-alloy steel. Given the resource scarcity, it is reason enough for us to take a closer look at the interface between the steel industry and tungsten production with three promising stocks. Where is the yield driver?

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17. May 2021 | 08:40 CET | by Armin Schulz

Jinkosolar, Almonty Industries, ThyssenKrupp - Commodity and energy prices still rising

  • Tungsten

Last week, a 4.2% inflation rate for consumer products was reported in the USA, which caused a correction in the markets. Construction prices rose by up to 70% in some cases. The Federal Statistical Office in Germany currently assumes inflation of 2%. However, there is already a partial shortage of chips for the automotive industry, wood is being imported expensively from Ukraine, and there is also a shortage of supplier parts in other sectors. One should strongly assume that inflation will be higher. Energy prices also rose by a good 27% last year. The long cold winter will cause prices to increase further there as well. To protect against inflation, investors should focus on quality stocks of companies that manufacture products and benefit from such bull markets in the long term. We present three attractive candidates today.

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