PRICE SURGE! Gold, Copper, Nordex, TUI, Benton Resources

Benton Resources: Historic resource far too low?

The stock of Benton Resources is still a hidden gem. The market capitalization of less than CAD 14 million seems too low, given the high prices for gold and copper and the convincing drilling results. Similar to industry giant Barrick, the focus is on gold and copper.

The core project is the copper-gold "Great Burnt" Project in Newfoundland, Canada, with an estimated mineral resource of 667,000 tons at 3.21% Cu (indicated) and 482,000 tons at 2.35% Cu (inferred). The management at Benton is convinced that it can significantly expand the historical resource and identify other base metals such as zinc and nickel in addition to copper and gold. An extensive drilling program is currently being implemented for this purpose.

It was recently announced that the Great Burnt Main Zone ("GBMZ") had been extended to a strike length of 950 m. Drill hole GB-25-53 intersected a broad zone of copper mineralization ("Cu") with 0.77% Cu over 32.10 m. It also had intercepts grading 2.41% Cu and 4.34% Cu. A subsequent downhole electromagnetic pulse survey confirmed the potential for expansion at depth and along strike. Drilling is planned for the next phase to investigate this anomaly.

The results of GB-25-60 were spectacular. Based on historical drilling of 1.09% Cu, the interval was considered low-grade. However, the current drilling returned 4.14% Cu over 21.70 m. There were also intervals with 17.85% Cu and even 20.78% Cu. Further drilling, therefore, offers the chance to upgrade the historical area.

The drilling program is set to continue throughout the summer at both unexplored and historical sites. Chances are good that Benton Resources will be able to increase the resource significantly afterwards. This should also noticeably benefit the stock. At the same time, the downside risk for the stock appears to be very limited due to the low valuation.

Nordex: Strong order intake causes share price to jump

Nordex's shares jumped by over 5% on the back of the order intake reported in the first quarter. As a result, the wind turbine manufacturer's shares are once again trading above EUR 15 – at the opening, the price even jumped to EUR 16. Analysts were also satisfied with the figures. Jefferies, for example, reiterated its "Buy" recommendation. The experts see the fair value of the Nordex share at EUR 21.

Yesterday, Nordex reported new orders of 2,182 MW for the first quarter of 2025. This is around 5% higher than the previous year's figure of 2,086 MW. The average selling price per megawatt of capacity (ASP) rose slightly from EUR 0.85 million/MW to EUR 0.87 million/MW. In total, 337 wind turbines were ordered for projects in 10 countries in the first three months of the year. The strongest individual markets were Turkey, Germany, Finland, Latvia, and Brazil.

Nordex CEO José Luis Blanco commented: "I am pleased with the successful start to the year, with incoming orders of around 2.2 GW, which builds on the good performance of recent quarters. We expect this positive momentum to continue over the course of the year and remain committed to our 2025 plans of winning further orders in our core regions within and outside Europe."

TUI: Analysts see upside potential

TUI's share price also rose by more than 5% yesterday, reclaiming the EUR 6 mark. There are currently no important company announcements. However, JPMorgan confirmed its "Overweight" rating for the TUI share yesterday. As a tourism group, TUI can be classified as one of the more defensive stocks. The impact of tariffs on the business is negligible. The situation is different when it comes to overall economic development. If people lose their jobs or save less due to inflation, less money remains for travel and vacations. Last year, Germany's relatively weak economic development had surprisingly little effect on people's desire to travel. However, the tourism sector may not be able to escape major economic upheavals.

Then, there were some smaller insider purchases at TUI. Like the Rheinmetall boss, TUI board members also took advantage of the sell-off to buy shares on Monday. Sebastian Ebel bought TUI shares worth EUR 27,200 at a price of EUR 5.44 on Monday. Sybille Reiß, the board member responsible for human resources, bought shares worth around EUR 11,600 at a price of EUR 5.806. She had also bought shares for EUR 19,668 at the beginning of April. At that time, Ebel also bought for around EUR 31,900. At that time, the price was still above EUR 6.

At the beginning of the year, the TUI share was still trading at over EUR 8. Due to the improved operating performance and creditworthiness, the share price was speculated to exceed EUR 10. But from mid-February, it then went down sharply.

There are many reasons for a rising share price at Benton Resources. The valuation of CAD 14 million is anything but high, and at the same time, the news flow is convincing. Perhaps Barrick will make a takeover bid. Nordex is currently enjoying a tailwind. However, the Company has often disappointed in the past. Even though TUI's insider purchases are relatively small, it shows the management's confidence.