Close menu




October 19th, 2021 | 11:12 CEST

Rock Tech Lithium, Barsele Minerals, Standard Lithium, Orocobre - Now the hunt is on!

  • Gold
Photo credits: pixabay.com

The lithium herd has started to move tremendously with the federal election. With a Red-Green-Yellow coalition, the market is betting on a fast and consistent approach to implementing the 2030 climate targets. This includes promoting modern technologies from E-mobility to renewable energies and the expansion of hydrogen technology, which is still in its infancy. The protagonists expect the greatest boost to come from subsidies for electrically powered vehicles. In German industry, this was still causing stomach aches 18 months ago, but now the first lithium converter is being built in Brandenburg. We take a look at the hot stock market candidates.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: ROCK TECH LITHIUM | CA77273P2017 , BARSELE MINERALS | CA0688921083 , STANDARD LITHIUM LTD | CA8536061010 , OROCOBRE LTD | AU000000ORE0

Table of contents:


    Dennis Karp, Executive Chairman, Manuka Resources Limited
    "[...] We will trigger indirect creation of 1,665 new jobs nationwide, while directly employing 300 staff - 270 operational and 30 administrative. [...]" Dennis Karp, Executive Chairman, Manuka Resources Limited

    Full interview

     

    Rock Tech Lithium - The first impact in Germany

    Chairman Dirk Harbecke will not have expected something like this either. A few days ago, Rock Tech Lithium announced the construction of a lithium hydroxide production facility. The somewhat sleepy RCK share price since summer immediately made a massive leap of pretty much 100% upwards. The price explicitly jumped from CAD 4.20 to 8.40 in the last trading week.

    The new plant will be built in Guben, Brandenburg, and thus only about 60 kilometers from the Tesla Gigafactory in Grünheide. The target is an annual lithium hydroxide production of 24,000 tons, enough for around 500,000 traction batteries for electric vehicles. Currently, most lithium is still produced in refineries in the Asian region. However, Rock Tech Lithium now wants to process lithium hydroxide using the planned converter factory in the Guben-Süd industrial park. The raw material for the lithium hydroxide will be extracted from a mine in Ontario, Canada. Rock Tech puts the total investment volume at up to EUR 470 million. The factory is scheduled to start operations in 2024.

    The German research house Montega updated its recommendation for the Canadian share only last week. Their vote remains "buy." The price target was lowered slightly from CAD 10 to 9.50. The stock already landed at CAD 9.00 last week. Rock Tech plans to become a key player in the battery technology value chain in Brandenburg. The share maps this future scenario very well but has also run fast. Buy further only in a stronger consolidation.

    Barsele Minerals - The Sweden project awaits news

    Sweden stands for progress and technology. For its own country, the government has very ambitious climate targets. Already in March 2009, the government presented its targets for 2020. According to these announcements, the country wanted to be completely independent of fossil fuels by 2020 and reduce its CO2 emissions by 40% compared to the reference year 1990. Great targets, but like many other European countries, Sweden is lagging behind its ambitious goals.

    One commodity company that is still small is Barsele Minerals, which is based in Canada and has a very interesting Swedish project. It is located in the mining region of Västerbottens Län in northern Sweden, 600 km north of Stockholm, and covers 33,500 hectares in the Fennoscandian Shield. The Barsele project is located at the western end of the Proterozoic "Skellefte Trend", a prolific belt of volcanogenic massive sulfide deposits that overlaps with the "Gold Line" in northern Sweden. Both polymetallic deposits and intrusive-hosted gold intercepts are present in this region.

    Until a few months ago, the Canadians were virtually a pure holding company and thus little known among commodity specialists. Barsele previously held a 45% interest in the Barsele Project in northern Sweden. In May, they published a letter of intent that they had concluded with Agnico Eagle. According to the letter of intent, Barsele Minerals will completely take over the gold project of the same name and acquire Agnico Eagle's share of 55%. Since the purchase terms have already been fixed and Barsele can continue exploration in peace, the agreement was considered a good deal for Barsele, not least because of the high quality of the project.

    At the beginning of September, both parties to the agreement announced the deadline for purchasing the project would be extended to the end of October. Now the stock market is waiting for news, stirring up some unrest in the current environment and weighing on the share price. The share moved back from CAD 0.70 to about CAD 0.50. However, since the deal is still considered to have been decided, the lower entry price does not come at an inopportune time. Dynamic investors use the favor of the hour.

    Standard Lithium versus Orocobre - Through the ceiling and away

    Another shooting star of the last days is Standard Lithium. In cooperation with the German Lanxess, they are working intensively on a lithium deposit in Arkansas. Although the newsflow for the share is not so pronounced, the price exploded upwards in the last 2 months. The news from Rock Tech Lithium also pushed the price up another 30% to over CAD 13. As of the beginning of the year, the share is now up more than 600%. The established and merged producer Orocobre can "only" show a price development of plus 260%. What is the future here?

    The development companies, in particular, are currently outperforming the established producers such as Orocobre. It is not surprising, as producers have to pay high prices in acquisitions. The recent acquisition of Neo Lithium is a case in point. Zijin Mining is putting nearly a billion Canadian dollars on the table for the group with the 3Q project in Argentina.

    One of the few remaining potential takeover candidates on the price list is Standard Lithium. The recent pre-feasibility study on the SWA project in the US sounds very promising - 30,000 tons of lithium hydroxide could be produced there over a 20-year period. Such a project would make a good lithium producer, but it would require an investment of more than USD 900 million. Currently, the hype is great in lithium shares; after several 100 percent gains, do not miss to press the sell button. The chart stop for Standard Lithium would be CAD 11.80.


    The hype in the metal sector continues. Especially for battery metals like lithium, cobalt and graphite, prices are going through the roof. Rock Tech and Standard Lithium have already multiplied in 2021. The small Barsele Minerals with its deal in Sweden can still be great fun.


    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

    André Will-Laudien

    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.

    About the author



    Related comments:

    Commented by Fabian Lorenz on April 11th, 2024 | 07:00 CEST

    Out of defense, into gold!? Renk, Barrick Gold, Desert Gold

    • Mining
    • Gold
    • defense
    • armaments

    On Tuesday, German defense stocks were shaken briefly and sharply. In a flash crash, Renk, Rheinmetall and Hensoldt fell by more than 10%. This indicates that defense stocks have run hot. The future prospects for the companies are undeniably positive, but a consolidation is in order. Gold is an entirely different story. The price of the precious metal is at record levels, but the shares of gold producers are still a long way from their 2020 highs. This applies to the heavyweights like Barrick Gold and Endeavour Mining, but even more so to the explorers. One of the promising explorers is Desert Gold. The Company operates in an attractive region, is on the verge of becoming a Tier 1 mine producer, and is a takeover candidate. Barrick Gold is one of many companies that could make a move on Desert Gold.

    Read

    Commented by Stefan Feulner on April 9th, 2024 | 06:45 CEST

    Palantir, Globex Mining, Bayer - The trend is pointing upwards

    • Mining
    • Commodities
    • Gold
    • Silver
    • Pharma
    • Software

    After a successful first quarter of 2024, the DAX and Dow Jones took a well-deserved breather last week. In contrast, the precious metal markets for gold and silver continued their upward trend. Gold also reached new absolute highs of USD 2,354 per ounce. While gold producers such as Barrick Gold and Newmont remained in hibernation, they have been following the rising base price for several weeks now. There is currently also an opportunity for smaller commodity stocks to participate disproportionately in the upward trend.

    Read

    Commented by Stefan Feulner on April 8th, 2024 | 06:45 CEST

    Geopolitical uncertainties - Sibanye Stillwater, Saturn Oil + Gas and Barrick Gold benefit

    • Mining
    • Oil
    • Gold
    • Silver

    In addition to the stock markets, which reached new highs last week, the direction of precious metals and oil is also clearly pointing upward. While gold also reached a new all-time high, silver has significant catch-up potential compared to its big brother. In the case of black gold, the current uncertain geopolitical situation could cause oil prices to break through the USD 100 per barrel barrier once again.

    Read