Menu

Recent Interviews

Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


18. October 2021 | 11:18 CET

Rock Tech Lithium, Royal Helium, Gazprom - Commodities as a booster for the portfolio

  • Helium
Photo credits: pixabay.com

Inflation is hitting with full force. Construction costs and energy prices are right at the forefront, which currently know only one direction: up. In the USA, the inflation rate was 5.4%, and in Germany, 4.1%. Winter is just around the corner and demand for heating oil, gas, and the like is rising, with no end in sight at the moment. If you want to hedge against rising prices, it is best to buy shares in producers that profit directly from price increases. Today we analyze three companies from the commodity sector.

time to read: 4 minutes by Armin Schulz
ISIN: ROCK TECH LITHIUM | CA77273P2017 , ROYAL HELIUM LTD. | CA78029U2056 , GAZPROM ADR SP./2 RL 5L 5 | US3682872078


Andrew Davidson, CEO, Royal Helium Limited
"[...] We expect the first three wells to be drilled, cased, completed and tested by the second week of March [...]" Andrew Davidson, CEO, Royal Helium Limited

Full interview

 

Author

Armin Schulz

Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

About the author


Rock Tech Lithium - Converter announcement boosts the share price

The revolution in the automotive industry towards e-vehicles has caused the price of lithium to explode. Lithium is essential for the production of e-batteries. The Canadian Company Rock Tech Lithium owns its own lithium mine in Canada, producing the raw material. But the Company is thinking ahead and plans to map the entire value chain. The next step is to build a converter in Germany to convert the lithium into lithium hydroxide. As a third pillar, the raw material is to be obtained from the recycling of old batteries.

On October 11, the Company announced the construction of its first lithium hydroxide plant in Brandenburg, Germany, specifically in Guben. The plant is expected to produce 24,000 tons of lithium hydroxide per year, enough for 500,000 electric cars. The cost of the converter is put at EUR 470 million, and the plant is scheduled to start production in 2024. Tesla's Gigafactory is only about 100km away. BASF is also building a cathode factory, which supplies basic materials for battery production, in Brandenburg and is receiving EUR 175 million in funding from the state. It is not yet known how much funding Rock Tech will receive.

The Company plans to build five converters in Europe by 2029 and thus win 30% of the European market for itself. If you look behind the scenes, the company around CEO Dirk Harbecke has well-known heads. CFO is Stefan Krause, who has worked at BMW and Deutsche Bank. When billionaire Peter Thiel invested in the Company in January, the stock jumped from around CAD 2 to CAD 9. Subsequently, the share consolidated to CAD 3 and is on its way to reach new all-time highs after the converter announcement. Future developments remain exciting.

Royal Helium - Waiting for the results of Climax 4

Helium is irreplaceable in modern technology for science, medicine and many high-tech products. There is a growing demand for this noble gas in a wide variety of high-tech applications, so the price of helium has also increased. Canada offers abundant helium deposits and owns a 400,000-hectare area in Saskatchewan, already successfully proving economic helium deposits at the Climax 1, 2 and 3 projects in the spring.

The Climax 4 project was created as a spin-off from Climax 3, as a regolith zone was discovered during drilling. On September 15, the Company announced that the hole had been drilled to a depth of 2,701m. The core samples are currently being analyzed, and results are expected in 30-45 days. Thus, results should be announced within the next two weeks at the latest. Additional drill targets at Ogema and Bengough have been identified and are currently awaiting permitting.

The consolidation phase has ended with the announcement of the completion of drilling at Climax 4, which will now be referred to as Climax Nazare. The high for the year on April 06 was CAD 0.92. On September 14, the low of the consolidation was CAD 0.43. Production planning is underway and news is expected soon. If this is positive, the share should leave the sliding zone between CAD 0.43 and 0.55 to the upside. The next resistance then waits at CAD 0.78.

Gazprom - Gas price makes cash registers ring

The worldwide energy demand is rising rapidly. The price of coal, oil and gas is a good indicator of this. The gas price, in particular, has experienced a real rally. Gazprom, as the largest producer of natural gas, is benefiting most from this. In addition, many supply contracts are linked to the price of oil. Despite the increase in production volumes by OPEC, the oil price is rising. Especially in Germany, after the nuclear and coal phase-out, gas is considered one of the solutions if renewable energies do not produce enough electricity.

Nord Stream 2 is ready, but the floodgates have not yet been opened. Pressure is mounting on the German government to give the go-ahead, thereby stopping prices from rising further. Russia's President Putin has already noted that delivery via Nord Stream 2 would be more cost-effective because it would save 2,000km of distance and transit costs to Ukraine. At the same time, this would allow Russia to put pressure on Ukraine.

According to rumors, Gazprom itself could once again raise its forecast for export prices. Per 1,000 cubic meters, USD 60 more could be flushed into the coffers. If sales remain at 183 million cubic meters as expected, this would mean additional revenues of almost USD 11 billion. The share price recently rose to EUR 9.44 and is currently trading at EUR 8.89. Should Nord Stream 2 go into operation, this would undoubtedly boost the Gazprom share price further.


Anyone who invested in commodity companies early on can relax about the new highs in commodity prices. Rock Tech Lithium wants to cover the complete value chain in the lithium sector, and investors now seem to recognize the potential. Royal Helium is still before production, so the stock is still cheaply valued. Gazprom has been pleasing investors for several months. The next dividend should be something to behold.


Author

Armin Schulz

Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

24. November 2021 | 11:28 CET | by Stefan Feulner

SMA Solar, Royal Helium, RWE - Beware of inflation

  • Helium

One can almost no longer hear this topic. In addition to the rising numbers of infections due to the fourth wave in the midst of the Corona pandemic and the escalating discussions about compulsory vaccination, the scarcity of raw materials and supplies is the central issue of our time. How long before the chip crisis in the automotive industry ends, can Apple produce enough smartphones so that we can put them under the Christmas tree for our loved ones, which, by the way, is also likely to be more expensive this year than last season. Scarcity will continue to accompany society in the coming years, be prepared for it.

Read

12. November 2021 | 11:57 CET | by Nico Popp

BASF, Royal Helium, Linde: This market is at the very beginning

  • Helium

Industrial gases are in demand - and expensive. Even gases such as Helium are not immune to price increases. Chemical giant BASF calls the noble gas valuable in a press release and, together with Linde, presented a process that can be used to extract Helium from natural gas production. In other regions, the extraction of Helium, which is used in medical devices and chip production, even succeeds independently of by-products - given the long-term dwindling production of fossil fuels, this is becoming increasingly important. We present three stocks.

Read

03. November 2021 | 12:34 CET | by Carsten Mainitz

Royal Helium, dynaCERT, Gazprom - What is next?

  • Helium

The oil and gas sector has long been a popular investment area. However, when it comes to gas, hydrogen company share certificates have been more in the spotlight in recent months. A more exciting and also little-noticed field is the noble gas helium. We take a broad look at the investment stories in the gas sector.

Read