March 8th, 2023 | 16:18 CET
Please turn on the power! Myriad Uranium, RWE, E.ON, Uniper, ThyssenKrupp - Renewable energy plus nuclear power is the green future!
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Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Myriad Uranium - Global boom in nuclear power
Currently, 47 nuclear reactors in the Chinese pipeline are expected to come online within the next eight to ten years. In a global comparison, this puts Beijing at the top of the international planning list, followed by Russia and India. At last count, 4 nuclear power plants were under construction worldwide in 2020. In this country, electricity generation from renewables continues to increase yearly, while the electricity yield generated with the help of nuclear energy is approaching zero.
The uranium market has been on the move again in recent months. Many shares made rapid price gains. Global Atomic has secured a giant project in Niger in Africa. The country is the world's sixth-largest uranium producer, with a 5-7% market share. Surrounded by politically unstable countries, Niger has a good jurisdiction. The French state-owned Areva has also been mining its required uranium there for years. Together with Global Uranium and GoviEx, it is located right next to the properties of a new explorer called Myriad Uranium. After lengthy political processes, the Company has secured a land package of more than 1,800 sq km and has already drilled 24,000 meters.
Myriad is cooperating with Loxcroft Resources in the exploitation of the licenses in the Tim Mersoi Basin. The Company secured its concessions before Russia invaded Ukraine and is now a winner in the region. If exploration delivers the desired results in 2023, CEO Thomas Lamb will surely attract a major buyer because the uranium market has run dry. With a fully diluted 37.36 million shares, the Company is valued at only CAD 13.4 million. The stock is listed in Canada and Germany. Promising!
At this year's INDABA Mining Conference in Cape Town, CEO Thomas Lamb presented his strategy in the uranium market to the International Investment Forum (IIF) (www.ii-forum.com):
RWE - One of the largest suppliers of green energy
Away from nuclear energy, the global expansion of alternative energy sources such as wind, solar and hydrogen is expected to grow exorbitantly in the coming years. With 120 years of successful history behind it, RWE has recently undergone a complete fundamental transformation and is now a leading provider of renewable energy worldwide. With wind farms, solar power and battery storage in many countries, the largest part of RWE's core business is now green power.
The plan is to invest more than EUR 50 billion in renewables by the end of the decade, and the promising hydrogen technology will feature strongly in this. RWE has committed itself to climate neutrality by 2040 and wants to subject the principles of its business operations to strict sustainability. The Group recently announced the acquisition of JBM Solar, one of the UK's largest project developers in the field of solar and battery storage. The acquisition gives the Düsseldorf-based company access to a development pipeline with a total capacity of just over 6 gigawatts. The first solar and battery storage projects could come on stream as early as the end of 2024, and the Company also expects to commission around 450 megawatts per year. The stock trades at a 2023 P/E of 11.5 and pays out 2.5%. Refinitiv Eikon notes 21 analyst recommendations with a median 12-month price target of EUR 51.13.
E.ON Manager becomes Uniper CEO
E.ON's spin-off Uniper was nationalized at 98.9% in 2022. It is likely that the remaining free shareholders will soon be subject to a squeeze-out, and the stock will then be delisted entirely. Meanwhile, a successor has been found for outgoing CEO Klaus-Dieter Maubach. E.ON manager Michael Lewis will take over as CEO of the nationalized gas importer; the Supervisory Board decided on the appointment at an extraordinary meeting. The exact date he will take up his duties has yet to be determined.
Following the near bankruptcy of Uniper, the gas supply situation in Germany has eased. Sharply increased gas imports from Norway, the Netherlands, and Belgium have almost compensated for the loss of Russian gas supplies since the end of August 2022. This is shown in an internal paper from the German Federal Network Agency. While E.ON's stock has still managed a 2% gain in 12 months, Uniper has gambled away its confidence among investors with an 83% loss. E.ON trades at a 2023 P/E of 11.7 and distributes a good 5% to its shareholders. The average price expectation of the 24 analysts at Refinitv Eikon is EUR 10.97, just above the currently traded price.
ThyssenKrupp - Strategic wrangling
The TKA share is currently performing very well on the stock market and has already gained 28% since the beginning of the year. Internally, sparks are flying as other strategic options are being examined alongside the planned IPO of the hydrogen subsidiary Nucera. The steel division is also reportedly being discussed, as concrete takeover bids have been received from abroad. CEO Merz wants a green ThyssenKrupp AG and is pushing for a spin-off of the problem area. We have already referred to the TKA share on several occasions. With a book value of currently just under EUR 23, the value of the stock market price should increase rapidly in the event of a spin-off. Highly interesting from a speculative point of view.
Climate protection through CO2 avoidance depends on many components. Electricity demand will increase by a factor of 1.5 over the next 5 years due to the increase in prosperity in the emerging markets alone. RWE, E.ON and ThyssenKrupp are standard stocks with solution competence concerning energy generation. Myriad Uranium has the best chance of discovering a large deposit.
Conflict of interest
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