Menu

Recent Interviews

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%"


08. June 2021 | 07:47 CET

NIO, Almonty Industries, Daimler - The power struggle escalates

  • Tungsten
Photo credits: pixabay.com

The US government bans American investments for 59 companies from China. They are accused of cooperating with the Chinese state apparatus and military. The response from Beijing is not likely to take long. The Middle Kingdom is pulling the strings concerning the globally planned energy revolution. Whether solar plants, wind turbines or electric cars. The switch from fossil fuels to a sustainable energy supply based on renewable energy requires many metals. At the moment, more than 80% of the production of rare metals takes place in China. The currently prevailing chip shortage could be just a precursor.

time to read: 3 minutes by Stefan Feulner
ISIN: US62914V1061 , CA0203981034 , DE0007100000


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

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Extremely increasing demand

Decarbonization, or the shift to a low-carbon economy, is exploding global demand for nickel, lithium and rare earth metals. By 2020, excess demand was already evident for most metals. Yet the energy transition is only at the beginning of its cycle, considering that the share of electrified vehicles in Germany is just 10%. The problem of increased demand is now being joined by another problem in the form of the escalating trade war. The Chinese government's plan includes establishing export controls on 17 rare earth metals. The goal is to develop and preserve these resources to meet rising domestic demand and protect the strategic resource amid intensifying global competition.

Tungsten shortage problem

Western nations face a mammoth task. Thus, projects are being built outside of China, subsidized by politicians, to continue to guarantee the supply chain, but this cannot be accomplished under a time frame of 10 years. The same problem exists with the strategic metal tungsten, which is irreplaceable in many modern technologies due to its unique properties.

The global tungsten market is mainly driven by China, which will continue to dominate both the supply and consumption of tungsten. Global demand for tungsten is forecast to increase by up to 7% annually, outstripping available supply, which will drive prices up permanently in the near future. Tungsten prices continue to move higher, having increased by 25% in 2021. Traditionally, tungsten prices lag copper prices by six months.

Mitigation through megaproject

Almonty Industries, which specializes in mining and processing tungsten, is working to solve this bottleneck. In addition to mines at Los Santos in western Spain and Panasqueira in Portugal, the Company is developing another tin and tungsten project at Valtreixal in northwestern Spain. However, the financial closing expected in June for the world's largest tungsten mine, the Sangdong Mine, should provide a push into higher valuation territory. The Almonty Korea Tungsten deposit has the potential to produce 50% of the world's tungsten supply outside China.

In addition, a customer for the next 15 years with a guaranteed price floor has already been found in the Austrian Plansee Group. Alongside the German Rohstoff AG, Plansee is one of the Company's major shareholders. The Groundbreaking Ceremony was held at the end of May. On the capital market, Almonty Industries is aiming for a listing on the ASX in Sydney. As part of this, Andrew Frazer, who has experience in the capital markets, was appointed to the board. The Almonty share, which is also traded in Germany, is currently on the verge of a breakout at EUR 0.85. The expected financial closing is likely to result in a significant increase in the share price. The expected financial closing should push the Company further north. The share still offers considerable potential in the long term due to its unique selling proposition (ex-China).

Scarcity puts the brakes on

Even Chinese companies are already suffering from scarcity. This was the case with electric car maker NIO, which announced its sales figures for May. With the delivery of 6,711 units, it was possible to top the previous year's result by 95.8%. However, looking at the previous month of April, this represents a 6% decline. The Company cited the global semiconductor shortage as the reason for the May decline. Due to the lack of supply of semiconductors, there were delays in the production and delivery schedule. However, the Company expressed confidence in making up for last month's dip in June. Despite the relatively weak figures, Citigroup analysts were optimistic and raised the stock from "neutral" to "buy." The price target is USD 58.30.

Daimler puts the brakes on costs
The Stuttgart-based company is willing to shed its own sales houses and workshops in the UK, Spain, and Belgium in order to continue cutting costs. "In this context, our markets are continuously reviewing their existing and future local sales setups as well as networks," a spokesman for the automaker said on Monday. He added that this had already been communicated at the local level in the three countries affected. First, the "Handelsblatt" had reported. It involves 25 branches with about 2800 employees. The possible savings effects pushed the Daimler share to a new 52-week high of EUR 80.34.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

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:

21. September 2021 | 12:22 CET | by Stefan Feulner

LPKF Laser, Almonty Industries, Wacker Chemie - Brilliant growth

  • Tungsten

During the last TV debate before the federal elections, the topic of climate protection was hotly debated. In her closing statement, the Green Party candidate said that "as Chancellor, she stands for real change, not doing things by halves when it comes to climate protection." Decarbonization must come about as quickly as possible. However, looking at the current stagnation in the expansion of the infrastructure for renewable energies on the one hand and the shortage of raw materials needed for this on the other, one should at least seriously question the ambitious goal.

Read

13. September 2021 | 12:55 CET | by Carsten Mainitz

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?

Read

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.

Read