Close menu




March 1st, 2022 | 11:40 CET

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

  • Gold
Photo credits: pixabay.com

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.

    Rheinmetall

    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.

    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 André Will-Laudien on September 30th, 2022 | 12:36 CEST

    Higher, faster, further: BYD, Infinity Stone, Porsche, Varta - The energy transition stock portfolio is wanted!

    • Mining
    • Gold
    • Electromobility
    • GreenTech

    The words "energy turnaround" are used a lot in public. The majority understand it to mean the use of GreenTech to generate energy while avoiding dangerous climate gases. Unfortunately, the leaks from the Nord Stream 2 pipeline, which is not in operation, are leaking the amount of gas into the atmosphere every day that the state of Denmark consumes in an entire week. This makes us painfully aware of how strongly warlike actions counteract efforts to save the climate. On the stock market, it is important to turn our gaze away from current events and toward a more peaceful future, where good ideas for sustainable change will also be rewarded. Which stocks belong in the portfolio?

    Read

    Commented by Juliane Zielonka on September 29th, 2022 | 10:57 CEST

    Barsele Minerals, K+S, BYD - Sweden as a crisis winner?

    • Mining
    • Gold
    • fertilizer
    • Electromobility

    Due to the explosions in the Baltic Sea pipelines Nord Stream 1 and 2, a switch to other energy sources is inevitable, especially for German industry. Fertilizer producer K+S, based in Kassel, is affected by this. The situation is different with Barsele Minerals. The Canadian company is exploring large gold areas in sunny Sweden and plans to mine up to 3.5 million ounces of the precious metal in the future. Electric car and battery manufacturer BYD, on the other hand, has sufficient resources in its home country of China and is preparing to make the leap into the European market. Find out here which shares are now defying the crisis.

    Read

    Commented by Stefan Feulner on September 27th, 2022 | 13:47 CEST

    Barrick Gold, Tocvan Ventures, Newmont, Glencore - Long-term positioning in gold makes sense

    • Mining
    • Gold
    • Commodities
    • Investments

    The FED's recent interest rate hikes and Chairman Jerome Powell's statement sent both equity and precious metals markets into the valley of tears. By all means, the monetary guardians want to curb rampant inflation. Whether this will succeed seems at least questionable. After all, it should not be forgotten that this would put an end to the already sputtering engine of the global economy. In addition, many already highly indebted countries are falling into ever greater problems due to higher interest payments. Thus, it is time to take a long-term, anticyclical position in the precious metals sector.

    Read