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March 1st, 2022 | 11:40 CET

Nordex, Rheinmetall, Triumph Gold: Russia crisis causes price swings

  • Gold
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Since last Thursday, war has been raging in the euro, and the world has been spinning faster. Over the weekend, Chancellor Scholz announced a new defense and energy policy for Germany in response to Russia's invasion of Ukraine. The German armed forces is to receive EUR 100 billion as special assets. In addition, according to Chancellor Scholz, NATO's 2% target is to be met in the future. Energy independence is to be increased by, among other things, two German LNG terminals. Finance Minister Lindner calls renewables "freedom energies." Accordingly, shares in Nordex and Rheinmetall were in strong demand on Monday. The price of gold also picked up, with Triumph Gold's shares posting double-digit gains.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: NORDEX SE O.N. | DE000A0D6554 , RHEINMETALL AG | DE0007030009 , TRIUMPH GOLD CORP. | CA8968121043

Table of contents:

    Triumph Gold: The turnaround now after drill results?

    The gold price traded around USD 16 higher at times on Monday and broke away from the USD 1,900 mark. Thus, the USD 2,000 no longer seems impossible. Even if the gold price is currently strongly driven by the news - both positive and negative - from Ukraine, one thing is certain: the world has changed a lot in recent days, and security will remain more important. This also applies to investments and speaks for a rising gold price. In addition to the industry giants such as Barrick Gold, younger exploration companies should also benefit. Among them is the Canadian Triumph Gold.

    Triumph currently focuses on the Freegold Mountain project in the mining-friendly Yukon region. The area covers 200 sq km and is located in the Dawson Range copper-gold belt. Recently, the Company announced the completion of a 19-hole, 6,615m diamond drilling program on the Freegold Mountain property in the Nucleus and Revenue areas. Ahead of the campaign, the Company had completed an extensive study in conjunction with Minerva Intelligence. The analysis, conducted with the support of artificial intelligence, indicated new gold and copper mineralization. In February, the Canadians presented encouraging drill results at the Nucleus deposit. Highlights included 4.5m of 2.00 g/t gold and 1.57 g/t silver within 46.28m of 0.54 g/t gold and 0.53 g/t silver at N21-02 in the oxide zone, which returned a gold recovery rate of 83%. Triumph Gold CEO Brian May was pleased with the results confirming considerable oxide gold mineralization at the Nucleus deposit, "The cyanide solubility results indicating suitability for heap leach mining methods are extremely encouraging. We look forward to defining additional oxide gold zones at Freegold Mountain." Despite yesterday's rally, the stock, also listed in Frankfurt, is valued at less than EUR 10 million.

    Nordex: Investors speculate on revaluation

    Over the weekend, Finance Minister Lindner referred to renewables as "freedom energies." The intention is to make it clear that the expansion of energy from renewable sources is to be accelerated once again. Accordingly, "green" shares such as Nel, Plug Power, SMA Solar, Siemens Gamesa, and Nordex were in demand on Monday. The Nordex share led the price gainers in the TecDAX. The stock is driven by the hope that wind energy will be pushed and bureaucracy reduced. Investors are thus speculating on a revaluation, as there has been little positive from Nordex in recent weeks. Most recently, it became known that the wind turbine manufacturer is examining the future of its Rostock production sites. This is because the Company is struggling with rising costs. At least the analysts at Jeffries advised buying the stock in mid-February. They said the wind turbine manufacturer is 1 of the top 3 in turbines on land. Because of strong order backlogs, the analysts considered the consensus estimates too low. Nordex should return to profitability in 2023. Jeffries' price target for the Nordex share is EUR 20.


    The defense sector is probably also facing a revaluation. Chancellor Scholz announced that the German armed forces are to receive EUR 100 billion as special assets and that Germany will participate in arms deliveries to Ukraine. In addition, the 2% NATO target is to be met in the future, which marks the beginning of a fundamental reorientation of long-term armaments and security policy. Other European countries are also expected to increase their arms spending in the coming decade significantly. JPMorgan analysts wrote in response: Russia's invasion of Ukraine has fundamentally changed the market environment for the European defense sector. As a result, European defense spending is likely to be much higher in the future than previously expected. Moreover, concerning sustainability criteria, more investors could accept that "defense" is necessary to preserve peace and democracy. Accordingly, the shares of defense companies rose sharply on Monday. The MDAX group Rheinmetall rose by more than 24% to around EUR 132. As a result, the price target for Rheinmetall, which UBS also raised on Monday from EUR 110 to EUR 121, has already been exceeded. The analysts expect that Rheinmetall could boost sales by almost 25% on the back of the German government's plans alone. Other defense groups also made substantial gains on Monday. The shares of defense electronics manufacturer Hensoldt rose by more than 41% and ThyssenKrupp shares by more than 9%.

    The world is spinning incredibly fast at the moment. Higher arms spending suddenly finds broad approval among the population and politicians. Green energy is now "freedom energies". Companies like Nordex and Rheinmetall should benefit from this, but investors should not blindly chase the price jumps. Gold will remain the "safe haven," and those who like it a bit more speculative can take a closer look at the Triumph Gold share.

    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.

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    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

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