Security is key – Acquisitions continue to drive growth! 100% bull market possible with Almonty, Steyr, Mutares and Deutz

Almonty Industries – The next 100% rally is inevitable

A strategic acquisition in the US? Almonty Industries is setting new standards for the supply of critical raw materials. With tungsten as a strategic element, geopolitical and industrial dynamics are rapidly gaining momentum. Western countries' dependence on China's tungsten monopoly (around 80 to 90% of global production) is driving up prices and supply fears. China's export controls and growing demand from defense, high-tech and cleantech sectors are further exacerbating this trend. Between March and September 2025 alone, the reference price for ammonium paratungstate rose by a whopping 50%, a new 10-year record and a clear signal to the capital markets.

With the start of production at the Sangdong mine in South Korea, Almonty presents a prime example of strategic raw material security and the all-important diversification of supply chains. The mine is considered one of the largest tungsten deposits in the world and will cover a large part of Western demand in the future. The US government now sees tungsten from allied regions as a strategic shield, and the first supply contracts for the US defense industry have been signed. At the same time, Almonty is considering the purchase of a tungsten deposit in the US, another potential game changer given the total imports of the US.

The NASDAQ listing and the relocation of the Company's headquarters to Delaware accentuate its international orientation and make it attractive to institutional investors, while strong anchor shareholders like Deutsche Rohstoff AG and the Plansee Group ensure stability. Analysts have price targets of up to CAD 9.00 and confirm an attractive average P/E ratio of only 5 to 7 for 2027, depending on when the first cash flows from South Korea materialize. With this setup, the valuation of Almonty shares could therefore rise dramatically in the coming months, given the mega performance of rare earth supplier MP Materials in the US. With the Sangdong mine about to open, supplemented by projects in Portugal and possible US acquisitions, Almonty Industries is positioning itself as an indispensable player for a secure, sustainable, and independent tungsten supply worldwide. Investors should take advantage of the current consolidation around CAD 6.00 to increase their holdings.

Learn more about the tungsten business in the recent interview with GBC analyst Matthias Greiffenberger on Stockhouse: https://stockhouse.com/opinion/interviews/2025/07/28/building-assets-producing-critical-minerals-and-slashing-dependency-on-china

Deutz – Drone business makes Deutz less dependent on combustion engines

Cologne-based engine manufacturer Deutz is pushing ahead with its strategic realignment by entering the defense sector. To finance the acquisition of drone propulsion specialist SOBEK, the SDAX-listed company has issued around 13.9 million new shares, raising around EUR 131 million. The share capital will increase by 10%, with the placement price set at EUR 9.45.

SOBEK expects revenue in the low to mid double-digit million euro range for 2025, with EBITDA of EUR 10 to 12 million. The purchase price corresponds to approximately 11 times EBITDA and is thus largely covered by the capital measure. By expanding the defense technology division, CEO Sebastian Schulte aims to reduce the Company's dependence on the cyclical business of classic combustion engines. While the capital increase may weigh on the share price in the short term, it will open up significant growth opportunities for Deutz in the long term.

Investors had already responded positively to the takeover in recent weeks: Deutz shares had risen 146% since the beginning of the year and recently reached their highest level since 2007. Hauck Aufhäuser Investment Banking lowered its price target for Deutz from EUR 11.30 to EUR 10.90, but maintained its "Buy" rating. The 10% capital increase came as no surprise and strengthens the engine manufacturer's position for the next wave of mergers and acquisitions, argues Jorge Gonzalez Sadornil in a recent assessment. The expert consensus on the LSEG platform is EUR 10.90. Since May, the share price has risen from around EUR 7.00 to its current level of EUR 9.70, meaning that a large part of its potential has already been realized.

Steyr – Major shareholder Mutares also benefits from successes in Asia

Steyr Motors is strategically expanding its position in Asia: Just ten months after opening its office in Beijing, the Company has secured central emission certification for its marine engines in China. This approval grants market access to the world's largest maritime market, where Chinese shipyards secured around 74% of global newbuilding orders in 2024 and play a leading role in environmentally friendly shipbuilding projects. The newly addressable market volume is estimated at up to 40,000 engines per year or EUR 5 billion.

At the same time, Steyr Motors has entered into a joint venture with Shangyan Power in Singapore, which is expected to generate secured revenue of EUR 65 million and an EBIT contribution of EUR 13 million over five years starting in 2026. While Steyr contributes its technological expertise, Shangyan brings additional production capacity and necessary market access in Asia. This will enable Steyr Motors to expand its international presence without additional investment and participate in a potential market of USD 13 to 20 billion in the ASEAN region alone.

With the combination of regulatory market access in China and the growth-oriented joint venture in Singapore, Steyr Motors is positioning itself as a dynamic player in the Asia-Pacific engine market with significant revenue and earnings potential. Major shareholder Mutares can also celebrate with its remaining stake of approximately 40% in Steyr. Both shares gained around 10% last week, Steyr from EUR 48 to EUR 53 and mutares from EUR 28 to EUR 31. The defense story in these stocks is not yet exhausted, so the equity stories remain interesting in the medium term. Investors should remain invested with a trailing stop.

The defense and commodities rally is shifting into the next gear. In Germany, second-tier companies alongside Rheinmetall, RENK and Hensoldt are now benefiting. Steyr Motors and its major shareholder, Mutares, performed particularly well. Things are also changing for the better at Deutz. At Almonty Industries, the starting signal for the next 100% rally has already been given. Things could really heat up again here, just like they did this summer.