June 26th, 2025 | 07:35 CEST
Sensational news drives shares: RENK, BYD, and Desert Gold
A major announcement from Desert Gold: the gold explorer has secured another exciting project. In an interview, the CEO expressed strong optimism. The new asset offers synergies with the Company's existing mega-project, which is nearing a PEA. The goal is to become a gold producer by 2026 - significantly increasing the likelihood of a takeover. RENK & Co. benefited yesterday from the NATO meeting and a cheerful Donald Trump. The confirmation of the 5% target for defense spending caused defense stocks to rise. In contrast, BYD shares remain weak. The Chinese are rushing from one sales record to another – or were they rushing? Because they seem to be falling victim to their own strategy. Investors are fleeing.
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
RENK AG O.N. | DE000RENK730 , BYD CO. LTD H YC 1 | CNE100000296 , DESERT GOLD VENTURES | CA25039N4084
Table of contents:
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Desert Gold: Shares jump!
Is Desert Gold's share price finally breaking out of its slump? On Monday, the gold explorer provided another reason why the sideways movement is finally coming to an end. Desert Gold is acquiring 90% of the Tiegba Gold Project in Ivory Coast. The project looks very promising, and at the same time, Desert is diversifying its operations.
In an interview with analysts from GBC Research, CEO Jared Scharf emphasized the synergies between Tiegba and SMSZ, Desert's previous flagship project. According to Scharf, both projects are located in comparable geological structures, enabling rapid and cost-efficient development. In addition, the experienced team from Mali can continue working directly in the Ivory Coast, which will facilitate operational implementation.
The exploration potential in Tiegba is huge. A 4 km long by 2 km wide gold anomaly is to be brought to drill readiness with a budget of just USD 100,000. Desert Gold estimates an additional USD 200,000 for the subsequent 3,000-meter drilling program.
Another price driver is imminent: Desert's CEO has confirmed that the preliminary economic assessment (PEA) for a mine within the SMSZ project will be published shortly. It is expected to deliver attractive figures at current gold prices. The goal is to begin construction in the second half of 2025 at the latest and to start production within four months. In 2026, the Company could make the leap into a new league: from explorer to gold producer. That would make it a clear takeover candidate.
https://youtu.be/AQKxVIqmfwQ?si=GiHQAgpnt6w4ISGf
RENK & Co.: NATO and Trump cause share price jumps
Sigh of relief for defense stocks. Shares in RENK, Rheinmetall, and Hensoldt rose significantly yesterday. The reason is clear: NATO member states have committed to significantly increasing their defense spending. In the future, they will spend 5% of their economic output on defense. This means that billions will flow into armaments and infrastructure by 2035, according to the summit declaration.
US President Donald Trump had pushed for the increase and, in his usual manner, celebrated himself as the winner. However, he threatened Spain with punitive tariffs if it failed to meet the 5% target. Overall, Trump was surprisingly restrained and even reaffirmed the transatlantic military alliance's commitment to mutual defense (Article 5). In the past, there had been repeated speculation about a possible US withdrawal from NATO as a worst-case scenario.
This seems to signal the end of the recent slump in defense stocks.
BYD: Victim of its own strategy
BYD shares, on the other hand, continue to perform poorly. The stock has lost almost 20% of its value in recent weeks. This is despite the Company rushing from one sales record to the next and having long since overtaken Tesla as the global market leader in electric vehicles. It has been known for some time that this was only possible with high discounts. And shareholders do not like price wars.
Most recently, the news agency Reuters reported that the Chinese are scaling back production at several plants. Production is to be cut by around a third at at least four locations. In addition, the expansion of several sites is to be halted for the time being. According to this, BYD would become a victim of the price war it started on its home market. Sales of electric vehicles are said to be weakening in China. Progress in Europe is also slow. In Germany, percentage growth this year is respectable, but starting from a very low level.
BYD seems to be falling victim to its own price war. This is not easy to get a grip on. Foreign markets still appear too small to compensate for the weakness of the domestic market. In contrast, Desert Gold shares seem to be breaking out of their slump. If a positive PEA is now also forthcoming – and this is to be expected given the high gold price – significantly higher prices should be possible. Whether this also applies to RENK and Co. is questionable, to say the least. Defense stocks have simply performed sensationally this year. There is already a lot of positive news reflected in the share prices.
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