Close menu




January 12th, 2021 | 07:46 CET

Plug Power, Almonty, Alibaba - Watch out, a breakthrough!

  • Investments
Photo credits: pixabay.com

Electric motors, hydrogen, fuel cells, new trends are coming to the capital markets all the time. But it is not only the latest technologies that will multiply in the coming years. Essential is the extraction of the raw materials needed for these technologies. The scarcity that we are sure to face in the next few years is likely to be seen by the stock market in the near future. At the moment, there is no sign of hype around scarce commodities.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: CA0203981034 , US72919P2020 , US01609W1027

Table of contents:


    Shortly before the breakthrough

    It all began relatively quietly and calmly in Europe. Almonty Industries, a junior explorer from Canada, specializes in the mining and processing of tungsten. In addition to mines is Los Santos in western Spain and Panasqueira in Portugal; the Company is developing the Valtreixal tin and tungsten project in northwestern Spain. According to the European Union governments and the Congress of the United States of America, tungsten is a critical industrial metal whose existence should be secured for Western industrialized nations. 80% of global production still occurs in China, but Almonty Industries is set to change that.

    Project causes reassessment

    The Canadians have a clear goal in mind. The largest tungsten mine in the world is to be built in Sangdong in South Korea. When Sangdong reaches full capacity in 2026, it will account for about 30% of non-Chinese supply and 7-10% of global supply. Preliminary work on financing is already well advanced. The final contract with KfW IPEX-Bank was signed in mid-December. The project financing has a volume of USD 75.1 million. A customer for the tungsten concentrates, which are to be produced in Sangdong from 2022, has also been landed. It is the Austrian Plansee Group. The Group is also providing EUR 30 million in bank guarantees to cover possible cost overruns.

    Great confidence and rosy prospects

    Plansee has strategic and longer-term plans for cooperation. The Group is acquiring shares from the CEO of Almonty Industries, making it the largest shareholder. The German Rohstoff AG also remains on board with 12.8%. For the analysts of First Equity Research, Almonty is a clear buy. The price target is CAD 1.45. The Company would still have to take a small step to make the breakthrough. The last significant condition precedent is an equity raise of USD 14.1 million. Experts see the Sangdong deal as the best financing for a junior miner they have ever seen because of KfW's involvement and the low-interest rate. Yesterday, the price of Almonty Industries rose to CAD 0.75 with a substantial increase in trading volume. If the last minor hurdle is cleared, First Equity Research's price target should wobble.

    It is regulated

    Alibaba's subsidiary is not the only one caught in the Chinese government's crossfire. The other Chinese Big Techs are also ordered to report. In addition to Ant Group, Tencent and JD.com must also disclose information about consumer loans made. According to Reuters, the data will be shared with credit reporting agencies. The data will then be shared with other banks and lenders to analyze risks better and prevent over-indebtedness. Alibaba's finance subsidiary made about one-fifth of all short-term consumer loans in China. Concerns about overly loose lending and growing defaults have been growing in China for some time. There continues to be no sign of Alibaba CEO Jack Ma. Instead, several analysts spoke out today. UBS Global Research continued to rate the stock as "buy" but lowered the price target from HKD 340 to HKD 310. Jefferies Research took a similar stance. The buy rating was left unchanged, but the price target was lowered from HKD 363 to HKD 318. We are also bullish on the stock in the long term.

    Too much of a good thing

    The situation is different for the leading manufacturer of fuel cell technology, Plug Power. Although the deal with SK Group, which intends to acquire 51 million Plug Power shares at USD 29.29 per share, is extremely positive, the Company's stock price is still too low. With a stock market valuation of USD 13.0 billion, Plug Power made just USD 230.0 million in sales in 2020. Admittedly, the synergy effects due to the joint venture are enormous. Nevertheless, we see correction potential to at least USD 34, also from a chart perspective.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Carsten Mainitz on May 18th, 2022 | 14:01 CEST

    wallstreet:online, Block Inc., PayPal - Is the mood turning?

    • Investments

    One sector that has made strong gains in the stock market boom of recent years has been FinTechs and financial services providers. Financial portal operators and neobrokers such as wallstreet:online and Smartbroker were among the beneficiaries, as was the payment service provider PayPal. The share price of Block Inc., the mobile payment provider originally launched under the name Square Inc., also climbed to dizzying heights. After a sharp correction, things could now be on the up again with the tailwind of good figures.

    Read

    Commented by Carsten Mainitz on May 17th, 2022 | 13:11 CEST

    BioNTech, mm2 Asia, TUI - Do not oversleep!

    • entertainment
    • Investments

    At least in Europe, "normality" seems to have set in in everyday life - that is, concerning Corona. However, cautionary voices are already pointing to the winter season and the associated threat of new mutations. Nevertheless, given the Ukraine war and the major security-political tensions in the world, nothing is "normal." Investors should be vigilant in following geopolitical developments and not miss out on the opportunities that continually present themselves at the corporate level.

    Read

    Commented by Juliane Zielonka on May 17th, 2022 | 11:56 CEST

    With a focus on Asia: Well positioned with Hong Lai Huat, BYD & Alibaba shares

    • Asia
    • RealEstate
    • Investments

    In volatile stock market times, investors win with a smartly positioned portfolio. That includes tangible assets such as real estate, renewable energy in the form of electric cars as the engine of the future, and generally looking to the Asian market for trading platforms such as Alibaba, the biggest top dog alongside Amazon. In countries like Cambodia, with an inflation rate of 2-3%, the economy is booming. Real estate companies like Hong Lai Huat are also focusing on acquiring agricultural land. We look at which stable value assets are optimal to invest in during times of Corona.

    Read