Close menu




September 15th, 2022 | 11:23 CEST

Nordex, Rheinmetall, Barsele Minerals: Turnaround potential!

  • Mining
  • Gold
  • Turnaround
  • Defense
Photo credits: pixabay.com

These three stocks have turnaround potential. Admittedly, investing is not easy in the current environment with inflation, rising interest rates and war in Ukraine. But challenging times offer great opportunities. Take Rheinmetall, for example: The stock has corrected by over 30%, yet the prospects are good and analysts also see a price potential of over 70%. Nordex has many problems of its own making, but here too, the industry environment is right, thanks to global investment packages for renewable energy. At Barsele Minerals, the gold price is a burden, but in the meantime, the market capitalization is well below the asset's value, and the recent capital increase was significantly oversubscribed.

time to read: 4 minutes | Author: Fabian Lorenz
ISIN: BARSELE MINERALS | CA0688921083 , NORDEX SE O.N. | DE000A0D6554 , RHEINMETALL AG | DE0007030009

Table of contents:


    Justin Reid, President and CEO, Troilus Gold Corp.
    "[...] Troilus has the potential to be an entire gold belt. All of our work to date points to this, and each drill hole makes the picture we have of the Troilus project much clearer. [...]" Justin Reid, President and CEO, Troilus Gold Corp.

    Full interview

     

    Barsele Minerals: Will partner Agnico Eagle increase its stake soon?

    The gold price is struggling with the USD 1,700 mark. The latest inflation figures from the US speak for rising interest rates and cause trouble for the "interest-free" gold. The high inflation speaks for an investment in gold - just like the rapidly increasing national debt in the US, Germany and numerous other economic nations. But this is currently largely ignored by the capital market - for the time being. Therefore, there is much to be said for physical gold and gold producers as portfolio additions. Exploration companies, in particular, have lost a disproportionately large amount of ground and currently appear correspondingly cheap. Barsele Minerals is one of these companies.

    The Canadians have a 45% stake in the Barsele Gold project in Sweden. Compared with competitors in Eastern Europe, Africa and Asia, this significantly reduces the political risks and correspondingly increases the value of the project. The remaining 55% is owned by Agnico Eagle. The minority shareholding brings advantages for Barsele Minerals - on the cost and risk side, for example, the billion-dollar group Agnico Eagle as operator bears the costs. The Barsele Gold Project is located 600 km north of Stockholm. There are several large gold deposits nearby, including Bjorkdal (Elgin Mining), Faboliden (Dragon Mining) and Svartliden (Dragon Mining). In recent years, 404 drill holes totaling over 155,000m have already been drilled at the Barsele project, and gold resources are estimated at 2.4 million ounces. In addition, metals such as lead, zinc and nickel have also been proven. Further drilling is currently taking place to increase the resource estimate to 3.5 million ounces of gold. Should this succeed, an increase in the shareholding or complete takeover by Agnico would be plausible. Investors see this in a similar light and made a strong grab in the recent capital measure. In order to finance the pro-rata obligations, Barsele Minerals wanted to raise CAD 1 million through a capital increase. Due to the high demand, the transaction was oversubscribed and flushed CAD 1.9 million into the Company's coffers. Barsele Minerals is valued at around CAD 40 million on the stock exchange. With a resource estimate of 3.5 million ounces of gold, the value of the investment is likely to be significantly higher.

    Nordex: Target price EUR 13

    Billions in subsidies for renewable energies are being approved worldwide. Yet, the Nordex share is trading over 60% below its 5-year high from 2021. The reason: the wind turbine manufacturer is not getting a grip on its operational problems. Nordex is now a small player in the industry and has focused on land-based turbines. Plant closures have not had any positive effects so far. At the same time, the Company suffers from high procurement costs and problems in the supply chains. The analysts at Jefferies see the latter as a trigger for a buy on the stock. In a study on stocks from the German-speaking region, Nordex is one of the preferred stocks. In addition to the fundamentally positive industry environment, investors in Nordex could speculate on an end to the problems in global supply chains. Therefore, the analysts recommend the Nordex share as a buy with a price target of EUR 13. Currently, the stock is trading just above EUR 9.

    Rheinmetall: Goldman Sachs sees a price potential of more than 70%

    Due to the ongoing geopolitical tensions since the beginning of Russia's attack on Ukraine and the tensions between China and Taiwan, the arms industry is again the focus of investors. Nevertheless, Rheinmetall's stock has lost over 30% of its value in recent weeks and is now trading at only around EUR 150. Too low? Because even if there is peace between Ukraine and Russia - for which there are currently no signs - the armament of the EU and other countries will hardly stop. Goldman Sachs probably also sees it that way. Therefore, the buy recommendation was renewed with a price target of EUR 263. The analysts thus see a price potential of over 70%. Operationally, Rheinmetall has been relatively quiet in recent weeks. After proudly unveiling the new "Panther" battle tank in the summer, the Company has been in the doldrums for some time. According to reports, countries in Eastern Europe have already shown interest. However, there has been no concrete news on this since then. The delivery of refurbished Marder infantry fighting vehicles is still awaiting the necessary approvals. According to its own information, Rheinmetall already has 16 Marder vehicles ready for delivery. Another 14 infantry fighting vehicles are currently being refurbished. In addition, 70 more Marder could be reactivated from old stocks. However, as is well known, the German government is undecided on this issue.


    All three shares offer arguments for an entry. Barsele Minerals is certainly speculative, but the valuation is now probably below the value of the Barsele stake. Rheinmetall will benefit from rising defense spending in the long term. At Nordex, an easing on the purchasing side would positively surprise investors.


    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 news.financial. 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

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by Armin Schulz on May 21st, 2024 | 07:15 CEST

    K+S, Globex Mining, Barrick Gold - Commodity stocks: Make money now

    • Mining
    • Gold
    • Commodities
    • fertilizer

    The commodities market in 2024 is characterized by high volatility, driven by strong demand, supply bottlenecks, and technological shifts to renewable energy, which make lithium and copper, for example, more expensive. In addition, inflation concerns make precious metals attractive as a hedge against inflation, while the central banks' interest rate policy is also a factor. Geopolitical tensions further disrupt supply chains and drive up prices. In this context, investments in commodity shares are becoming increasingly important. This form of investment allows investors to benefit indirectly from price fluctuations and the increase in the value of commodities without having to physically invest in the commodities themselves. We are, therefore, looking at three commodity companies today and analyzing their potential.

    Read

    Commented by Stefan Feulner on May 21st, 2024 | 07:00 CEST

    Lynas, Almonty Industries, General Motors - Is the trade war escalating, and what is Tesla doing?

    • Mining
    • Tungsten
    • Electromobility
    • RareEarths

    The stock markets continue their record-breaking run. The Dow Jones Industrial has climbed to the 40,000-point mark for the first time in its history, and the DAX is also on the verge of breaking through the 19,000-point barrier. So far, so good, one might say. However, something is brewing in the background with regard to the trade war between the US and China, which could put enormous pressure on company margins in the future. As a result, critical commodities, in particular, are likely to be on the verge of a strong upward impulse.

    Read

    Commented by Juliane Zielonka on May 17th, 2024 | 07:00 CEST

    Almonty, Rheinmetall, Super Micro Computer - Commodity rally for defense and cloud

    • Mining
    • Tungsten
    • AI
    • Defense

    AI and defense stocks are setting the stock market on fire. Investors worldwide seem to have acquired a taste for artificial intelligence and defense. Wall Street is expecting a four-digit price target for Super Micro Computer soon. Rheinmetall is also enjoying full order books. Since the takeover of a Spanish ammunition manufacturer, production has also increased in this segment. Meanwhile, tensions between the largest economies, the USA and China, are growing enormously, which is reason enough for investors to take a look at Almonty Industries. The tungsten producer is on course for growth thanks to the restart of a mine in South Korea. Tungsten is rising in value as the increase in AI, and armaments are directly boosting demand for the rare earth metal. Who will win the stock market race?

    Read