Rheinmetall, AJN Resources, Shell – Surprise creates upside potential

Rheinmetall – Stronger ahead of the figures

After briefly overshooting the EUR 2,000 mark, Rheinmetall shares corrected in recent weeks, and a further major decline appears to have been prevented, at least for now. On the one hand, the share price was able to defend the significant support zone at EUR 1,700 several times, and on the other hand, the indicators are turning back into the buy zone. The expected figures for the third quarter of 2025, which will be published on November 6, could provide new momentum toward the all-time high. This will be followed by the specially staged Capital Markets Day, at which CEO Armin Papperger is likely to explain the defense company's future strategy in more detail.

The Düsseldorf-based company's order books are currently filling up. Its subsidiary American Rheinmetall received an order worth around EUR 26.6 million from the National Center for Manufacturing Sciences. The aim is to develop new methods for damage assessment and repair of Bradley armored vehicles, which are in service with both the US Army and Ukraine.

The 18-month program aims to build maintenance and repair capacities closer to the areas of operation. This should enable damaged vehicles to be returned to service more quickly. The Bradley Infantry Fighting Vehicle will serve as a test platform for mobile repair teams equipped with modern diagnostic technology, special tools, and flexible logistics. In the long term, the concept is intended to be scalable and enable decentralized repair locations even under challenging conditions.

AJN Resources – Powerful potential

Gold prices have surged to record levels in recent months, driven by geopolitical tensions and a global flight to safe-haven assets. At the same time, expectations of falling interest rates and a weaker US dollar continue to fuel demand. Central banks are also expanding their gold reserves for diversification purposes. This has not changed even after the sharp correction that drove the price of gold below USD 4,000 per ounce in the short term. This is likely to be an interim correction in the overall upward trend, creating attractive entry opportunities for producers and exploration companies such as AJN Resources.

The Canadian exploration company focuses on exploring promising gold projects in Africa, particularly in Ethiopia and the Democratic Republic of Congo. Under the leadership of experienced geologist Klaus Eckhof, who has been known as an Africa-focused investor for decades, the Company has shifted its focus from lithium to gold, with Ethiopia as its new core market.

AJN holds a 70% majority interest in the Okote Gold Project, located approximately 100 km from the significant Lega-Dembi mine. Previous drilling covering more than 14,000 m returned gold grades ranging from 1.65 to 8.71 g/t, underscoring the high potential of the region.

New geological mapping and sampling identified several mineralized shear zones, including the Okote Central Shear Zone with thicknesses of 10 to 40 m and three parallel zones to the east with a combined width of over 60 m. These zones remain open to the north and south and show significant quartz-carbonate alterations as well as pyrite and chalcopyrite mineralization.

In addition, AJN is working on the nearby Dabel Gold Project, which covers 672 sq km in the gold-rich Adola Belt. Field investigations and preparations for an initial resource estimate in accordance with the NI 43-101 standard are currently underway.

In parallel, the Company is planning a 1,500-meter diamond drilling program to determine the structure and potential of the mineralized corridor more accurately. With a market capitalization of CAD 6.86 million, AJN Resources appears undervalued relative to its exploration potential, especially against the backdrop of increasing political stability and rising investment in Ethiopia's mining industry.

Shell – Well above expectations

Oil prices have fallen significantly in recent months, despite geopolitical tensions and OPEC+ production cuts. The main reasons for this are a global oversupply due to rising production volumes in the US and Russia, growing inventories, and weaker demand, particularly from China. The declining risk premium is also putting additional downward pressure on prices.

The British energy giant, therefore, surprised both analysts and investors by significantly exceeding expectations. Shell also announced another extensive share buyback program. Over the next three months, the Company plans to invest USD 3.5 billion in buying back its own shares.

Adjusted earnings of USD 5.4 billion exceeded analysts' estimates of USD 5.05 billion, although they remained below last year's level of USD 6 billion. CEO Wael Sawan spoke of another "strong quarter" and highlighted the solid performance of the marketing business and deepwater projects in the Gulf of Mexico and Brazil.

Net debt fell to USD 41.2 billion from USD 43.2 billion in the previous quarter. Stable oil prices above USD 80 per barrel, high refining margins, and strong trading results provided tailwinds.

Since the beginning of the year, Shell shares have gained around 18% and significantly outperformed many competitors. The figures for oil giants Exxon Mobil, Chevron, and BP will follow in the coming days.

The defense company Rheinmetall is showing strength ahead of its results. In contrast, the quarterly figures of oil giant Shell were significantly better than expected. AJN Resources still appears to have considerable upside potential in terms of its exploration prospects.