More Power Requires More Infrastructure! Opportunities for Phenom Resources, Siemens Energy and Nordex?

Phenom Resources: Several share price catalysts in place

Phenom is developing several mineral projects in Nevada. The portfolio includes the wholly controlled Carlin gold-vanadium project. The resource estimate dates from 2019 and reports around 303 million pounds of vanadium pentoxide in the indicated category. Vanadium hardens steel and makes it more resilient, making it an important raw material for industry and infrastructure. In addition, its use in long-life vanadium redox flow batteries creates opportunities to store wind and solar power.

Phenom also filed a provisional US patent application in the summer for a newly developed processing method. The so-called flowsheet describes the sequence of processing steps intended to recover and separate vanadium and nickel from the feedstock. According to the company, tests recovered around 80% of the vanadium and approximately 75% of the nickel contained in the feedstock. To implement this, Phenom is seeking a strategic partner to finance and operate a suitable processing plant.

Phenom also has a more direct link to storage technology through its 5% stake in the Japanese company MK Plus. This company develops vanadium solid-state batteries and is expanding its industrial base in Sweden. According to Phenom, the Swedish company received a funding commitment of just under 120 million Swedish kronor, equivalent to around EUR 10.8 million. In August, initial deliveries were announced for the autumn, following the plant conversion.

The Dobbin gold project is also important for near-term development. SSR Mining acquired a 15% stake in the Dobbin project in September for USD 4 million. Phenom's subsidiary initially holds 85% and leads the joint venture. Investors can eagerly await new drilling results. The Canadian company is currently valued at CAD 49 million on the stock market.

Siemens Energy: Will the growth trend continue?

At times, doubts about the profitability of billion-dollar AI investments grow and put technology, automation and energy technology stocks under pressure. Even record order intake then offers no protection for companies such as Siemens Energy. Rising interest rates also increase financing costs and credit risks. Analysts warn that the pricing power of data centre and energy technology suppliers could weaken after margins rose sharply in recent years. The quarterly results of major US technology groups will likely show whether the AI boom is maintaining momentum.

Growth drivers include additional grid capacity, new power plants and the service business. Siemens Energy supplies gas turbines, transformers, grid technology and, through Siemens Gamesa, wind turbines, among other things. In the third quarter, which ended in June, revenue rose by 18.5% to EUR 11.45 billion. The group earned EUR 1.19 billion after tax. Siemens Gamesa achieved a positive quarterly result for the first time since the 2022 financial year. This marks an improvement in what has so far been the group's key weakness.

Order intake reached EUR 17.9 billion, bringing the order backlog to an impressive EUR 162 billion. This gives investors revenue visibility over several years. The results scheduled for release on November 11 will show whether the strong business performance has continued and whether the outlook for the new financial year meets investors' high expectations.

Nordex: Raised guidance sparks only brief enthusiasm

Nordex recently surprised with a strong third quarter and significantly raised its earnings guidance for the current financial year. Instead of the previous 8 to 11%, the wind turbine manufacturer now expects an EBITDA margin of 11.5 to 12.5%, while revenue guidance remains at EUR 8.2 to 9 billion. Preliminary figures show revenue rose 28% in Q3, and EBITDA more than doubled to EUR 278 million compared with the same period last year. Accordingly, the EBITDA margin widened from 8.0% to 12.7%. The higher-margin service business, strong project execution and lower burdens than originally expected are providing a tailwind.

The stock market celebrated this, with gains of more than 10% at one point, bringing the share price back to around EUR 40. This is also where the 200-day moving average lies. Analysts at Berenberg and Jefferies raised their price targets to EUR 61 and EUR 63, respectively and confirmed their Buy recommendations. Nevertheless, the shares reversed and are currently trading around EUR 37. Nordex will publish its final quarterly results on November 5.

Conclusion

Phenom has a diversified portfolio, with a focus on gold and vanadium exploration, process engineering and, through an investment, battery technology. SSR's involvement is also providing fresh momentum for the Dobbin Gold Project. Siemens Energy reports a huge order backlog; can the new targets excite the stock market? Nordex impresses with rising profitability, although the coming quarters must confirm its sustainability.