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Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


19. October 2021 | 12:46 CET

Nvidia, Almonty Industries, BP - Scarcity drives prices!

  • Tungsten
Photo credits: pixabay.com

The shift from fossil fuels to renewable energy sources is increasing the need for industrial metals. Copper's excellent thermal conductivity, along with its corrosion resistance, ease of processing, strength, durability and formability, offer unbeatable advantages in solar thermal applications. Tungsten's properties also play an increasingly important role in power, lighting, medical and aerospace applications. Companies producing the critical metal have significant upside opportunities in this regard.

time to read: 3 minutes by Carsten Mainitz
ISIN: NVIDIA CORP. DL-_001 | US67066G1040 , ALMONTY INDUSTRIES INC. | CA0203981034 , BP PLC DL-_25 | GB0007980591


Lewis Black, CEO, Almonty Industries
"[...] While tungsten has always played an important role in the chip industry, it is now being added to batteries for e-cars. [...]" Lewis Black, CEO, Almonty Industries

Full interview

 

Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

About the author


Almonty Industries - The way is clear

CEO of Almonty Industries, Lewis Black, stated his Company's intention on record at the IIF Forum held last week, "This project is being built to our ESG (Environmental, Social and Governance) program and is therefore designed for a "100-year event" rather than the usual 30 years."

The development of the road and river diversion project continues at the Sangdong Mine site in South Korea. The mine hosts one of the most considerable tungsten resources globally and has the potential to produce 50% of the world's tungsten supply outside of China. Canadian mining Company Almonty Industries, through its wholly-owned subsidiary Woulfe Mining Corp, owns a 100% interest in the Almonty Korea Tungsten project, located 187 km southeast of Seoul.

A capital increase of EUR 9.4 million completed the last condition precedent for the execution of the project. KfW-IPEX Bank from Frankfurt provided the share of the debt capital with a sum of around EUR 65 million. The Austrian Plansee Group was also secured as a new major shareholder and buyer for the tungsten concentrates, which will be produced in Sangdong from 2022. The offtake agreement has a term of 15 years and guarantees Almonty an attractive minimum price for a sales volume of at least CAD 750 million.

Alongside the Plansee Group, Deutsche Rohstoff AG benefits from a steadily rising share price with a 12.2% stake in the Company. The stock market value of the Canadians is currently a manageable CAD 172 million. The Sangdong project will make Almonty one of the world's leading tungsten producers. In addition, there is further potential in important tungsten-producing regions: the Los Santos Mine and the Valtreixel project in Spain and the Panasqueira Mine in Portugal are also part of the mining company's portfolio.

Nvidia - Main beneficiary of the chip shortage

The shortage of semiconductors is affecting the automotive industry worldwide. There are several reasons for this. One is the structural change that is currently taking place in the automotive industry. The demand for cars based on electric drives is increasing significantly compared to vehicles with combustion engines. In addition, due to the Corona pandemic, there has been a disruption in supply chains. Already in the first half of 2021, 4 million fewer cars had been built than planned. Accordingly, Volkswagen was 21%, Ford 18% and General Motors 12% below plan.

But the shortage of semiconductors is also present in other industries. End customers felt this most recently in the sharp rise in prices for graphics cards from industry leader Nvidia. The average sales price compared to the RRP is currently a proud 172%, and a flattening of the price curve is not expected until the summer of 2022 at the earliest.

There are also delays at Nvidia when it comes to the final takeover of the British Arm Group. More than a year ago, the offer was sent to Japanese tech investor SoftBank for USD 54 billion. Although the US chip giant is offering concessions, the EU competition regulators want to examine the merger in more depth. The European Commission is expected to conclude its preliminary review on Oct. 27. A four-month investigation into the deal would now follow, people familiar with the matter told Reuters news agency. In terms of market leadership, Nvidia should continue to benefit from the chip shortage, but a cancellation of the ARM deal could impact its share price, at least in the short term.

BP - Profits in the "old" business

Oil and gas giant BP has set a goal of being a carbon-neutral company by 2050 or sooner and helping the world become carbon neutral. The focus is on renewable energy and electromobility. With the investment in Digital Charging Solutions GmbH, in which the carmakers BMW and Daimler each hold a one-third stake in addition to BP, the Company intends to invest in infrastructure concerning e-charging stations. Behind the partner company is the charging station provider Charge Now, which has already announced its vision of expanding the global network of public charging points for e-vehicles to at least 70,000 by 2030.

For now, however, BP is still making good money from soaring oil and natural gas prices. As a result, private bank Berenberg has upgraded the group from "hold" to "buy" and raised its price target from 310 to 425 pence. Valuations in the oil and gas sector remain attractive and, given the favorable business environment, consensus estimates are likely to rise further, analysts commented.


Scarcity is the prevailing theme of our time. Tungsten producer Almonty Industries has a unique selling point due to the construction of the world's largest tungsten mine. As an industry leader, Nvidia continues to benefit from the chip shortage, and the tight supply in the oil sector should be positive for BP, according to analysts.


Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

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:

15. November 2021 | 11:31 CET | by Armin Schulz

Infineon, Almonty Industries, K+S - Profiting from supply bottlenecks

  • Tungsten

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02. November 2021 | 12:14 CET | by Fabian Lorenz

Varta, Valneva, Almonty Industries: It is getting close!

  • Tungsten

Volkswagen, SMA Solar, Asos are just a few examples; hardly a day goes by without companies from a wide variety of industries complaining about shortages. Be it computer chips for the automotive industry, industrial raw materials for production or transportation options. But there are also winners. Among them is tungsten producer Almonty Industries with its project of the century in South Korea. Germany's Varta is looking to profit from the battery shortage, and excitement is building ahead of the numbers. And Valneva, after its successful capital increase, is hoping that corona vaccines will continue to be in demand.

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13. October 2021 | 13:23 CET | by André Will-Laudien

BASF, Almonty Industries, Millennial Lithium, BYD - All sold out?

  • Tungsten

Anyone who can offer scarce raw materials today is in a fortunate position as far as business prospects are concerned. In particular, metals and battery raw materials are in high demand and have become a bone of contention in globalization. That is because many critical metals are majority-owned by China, meaning that the regime decides on potential allocations to foreign countries. Admittedly, the Middle Kingdom wants to stay in business with the West, so long-term contracts exist. Nevertheless, the domestic industry is naturally given preferential treatment; we can only hope for political stability and incremental improvements in the West. Who are the interesting players in the tight commodity market?

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