Raw materials war sends industry into panic – New buyers enter the resource sector: SAP, Barrick Mining, Globex Mining

Despite the commodities boom, industrial companies have so far remained largely inactive

In recent quarters, stock markets have already been heavily influenced by the new geopolitical realities. Since JD Vance's pointed remarks at the Munich Security Conference in February this year, the world has changed significantly. Defense companies and specialized suppliers have benefited most. A real boom has also broken out in the commodities sector. Talking to people involved in financing commodity projects, it quickly becomes clear that capital has rarely flowed as freely as it does at present. The commodities sector has therefore been in celebration mode for months. However, the next wave of attention for companies in this sector is only just beginning.

According to recent press reports, German industrial companies are anything but well prepared for the current crisis. In its Monday edition, Handelsblatt newspaper estimates that around half a million people in Germany work in industries that are heavily dependent on rare earths. Another 3 million employees rely significantly on these raw material imports, according to Handelsblatt, citing a study by McKinsey. The automotive industry, energy technology, and aerospace are particularly affected by China's export restrictions. The chip sector and, indirectly, many ambitious AI projects, such as those recently announced by SAP and OpenAI, could also be hampered by the trade war. The reason: missing raw material deliveries cannot be replaced quickly. It typically takes ten years to build up mining capacity. In addition, other raw materials essential to the chip industry, such as tungsten and helium, are also scarce, and their supply chains are fragile.

Globex Mining: More than 200 commodity projects in one stock

This brings companies that are already pursuing mining projects today into focus and may also hold the resources for tomorrow in their portfolio. While commodity giants like Barrick Mining have little to offer beyond gold and copper and are, in any case, the first port of call for many investors when it comes to commodity investments, commodity conglomerates like Globex Mining offer a good opportunity to invest in a broad mix of raw materials. Globex Mining holds around 200 potential mining projects in its portfolio, all located in North America. The projects include typical industrial and precious metals as well as rare earths, lithium, and other elements, most of which are currently largely sourced from China.

Globex leverages its commodity expertise and network to identify promising properties early and acquire them. In some cases, Globex itself conducts exploration work to make these properties more attractive to the market. The Company then typically enters into partnerships with exploration companies that specialize explicitly in these raw materials. The deal structure usually works as follows: partners can develop the properties in exchange for a usage fee. Under certain conditions, companies can also acquire the projects outright, or Globex Mining retains a minority stake. Milestone payments or revenue sharing in the event of future production are also common. This approach allows Globex Mining to finance its business and generate income streams. Against the backdrop of current geopolitical tensions, the business model becomes even more compelling: All projects are located in North America and cover almost all key raw materials – Globex even holds indirect exposure to antimony, a critical metal for the defense industry. The stock is therefore ideal for all investors who seek to invest in raw material projects across the market. Opportunities like these have rarely been accessible at such an early stage.

Globex stock jumps after sideways trend

The fact that many industry representatives are ill-prepared for current events also suggests that the commodity sector is facing an additional surge in demand from corporations, family offices, and other strategic investors. Securing physical access to urgently needed elements with a commodity project seems more relevant today than ever. Since many of these professional investor groups are only gradually acquiring expertise in this area, the China shock is likely to reach the commodity market with some delay. Globex Mining's share price already rose significantly last week. Still, the stock, up 32% over the past six months, is not yet overbought, with a market capitalization of around EUR 63 million.