NSJ Antimony, Rheinmetall, Infineon: Whoever controls the bottlenecks will be among the winners!

NSJ Antimony: Fresh capital for the next step

NSJ Antimony recently announced the completion of a capital increase of just over CAD 0.90 million. To this end, 1.4 million shares were issued in Canada at CAD 0.66 each as part of a so-called flow-through financing. The new funds are intended to advance exploration at the Antimony 2.0 project in New Brunswick, Canada.

The project is located just 15 km from the historic Lake George mine, which at times supplied up to 4% of global antimony demand between 1970 and 1992 and was considered North America's only pure antimony producer. At the end of September, NSJ expanded the project area through 22 additional claims, bringing it to 57 km². The new areas' geological structures are comparable to those of the neighbouring Lake George deposit.

Initial exploration results already provide promising indications, with three pronounced antimony anomalies identified. In August, the Canadians completed a high-resolution airborne magnetic survey covering 258 line kilometres. Together with induced polarisation surveys, these data formed the basis for the drilling programme totalling 3,000 m that began in September. The campaign is intended to investigate the three areas with elevated antimony values, which could generate news flow and set the direction.

The importance of the critical raw material antimony for security of supply, defence capability and modern technologies is rising inexorably. The rare metalloid is used in numerous key industries because of its unique properties. Among other things, it is indispensable for flame retardants, the defence industry, ammunition, electronics and certain energy storage systems.

Convincing results from the ongoing drilling programme at the promising exploration area near the historic world-class mine could significantly enhance the project's value and attract potential partners. Alongside the metal content, the thickness and continuity of the mineralised zones matter here. Investors should follow the news flow closely.

Rheinmetall: November could bring movement

The group recently announced further Schakal orders for Germany and the Netherlands. A further 69 wheeled infantry fighting vehicles were ordered, with a value in the mid-triple-digit million EUR range. The planned deliveries in 2032 and 2033 illustrate the difference between the not inconsiderable time span between order intake on the one hand and fulfilment or revenue recognition on the other.

In the first half, revenue rose 39% to EUR 5.23 billion, while the operating result reached EUR 786 million. At the same time, operating free cash flow stood at minus EUR 1.62 billion. Capacity expansion, inventories and deferred advance payments tied up capital. Following the discontinuation of the F126 frigate programme, guidance was lowered to a revenue range of EUR 13.7 to 14.2 billion, with an operating margin of around 19%.

At the current share price of EUR 1,038, the defence group is valued at EUR 48.4 billion and thus at 3.5 times and 2.6 times its 2026 and 2027 revenue, respectively. Most analysts have already lowered their price targets. The average target now stands at around EUR 1,550. This implies attractive upside potential of 50% over the next 12 months.

The next test comes with the quarterly figures on November 5. The decisive factor is how convincingly Rheinmetall can translate its orders into results and cash flows. The Capital Markets Day on November 26 and 27 could be particularly interesting for investors because that is typically when the group presents its medium-term strategy, growth targets, revenue planning and margin expectations.

Infineon: AI on the verge of the next growth surge?

Infineon addresses a different bottleneck. Data centres require increasingly powerful power supplies. The group supplies power semiconductors that efficiently switch and convert electrical energy. Its sales markets also include vehicles and industrial installations. According to the latest company announcements, the group is significantly expanding its position in the future power-semiconductor market and is investing around EUR 1.1 billion by 2034 in a new gallium nitride (GaN) high-volume production facility in Villach, where production is scheduled to start at the end of 2027.

Gallium nitride enables fast switching with low losses, while larger wafers are also intended to improve production costs. Through the expanded collaboration with Nvidia on 800-volt power architectures for AI data centres, Infineon benefits from the enormous increase in power requirements and the massive demand for more efficient chips.

With the annual figures due on November 10, the new outlook will show whether the AI business continues to meet high expectations. The leverage lies in rising demand for power semiconductors for AI data centres, combined with a degree of pricing power. The shares have gained 34% since the start of the year to their current level of EUR 51. Analysts assign the stock an average price target of EUR 87, leaving plenty of upside.

Conclusion

With fresh capital, NSJ Antimony can continue to advance its promising Canadian antimony project. New drilling results could provide further momentum. Rheinmetall must underpin its expansion with better figures and reliable new medium-term targets. Infineon combines technological strength with the growth of AI infrastructure, but faces high expectations.