Share price rise! Nel ASA, Rheinmetall, Almonty Industries - Which momentum share is running out of steam?

Almonty Industries: China is causing a stir in the tungsten market

The Almonty Industries share has gained around 26% in the current year. At EUR 0.46, the tungsten producer's shares, also listed in Germany, have been on a sustained upward trend since October 2023. There is much to suggest that this is just the beginning of a price rally.

Firstly, something is brewing in China, which is responsible for around 80% of global tungsten production. Tungsten is used in the defense industry, among other things, and also for solar modules. Therefore, it is also a critical raw material for the Chinese government. Exports are taxed at 20% and strictly monitored.

All the more so at present, as the news platform "Fastmarkets" reports that tungsten prices in China have reached a 10-year high in recent weeks due to the complex situation. Increasingly strict environmental regulations for mining companies have led to a decline in production since 2023. An increase is also not in sight in the first few months of the current year. On the other hand, the tense geopolitical situation surrounding Ukraine and Taiwan is causing prices to rise. And then, of course, there is the strong demand from the photovoltaic and manufacturing industry, such as the defense sector.

In addition to these external factors, the development at Almonty itself also speaks in favor of rising prices. However, the price trigger is clearly the major project in South Korea. Here, Almonty is working flat out on the development of the Sangdong mine. It is due to open this year and has the potential to make Almonty one of the world's largest tungsten producers. This would ultimately lead to a revaluation of the share, which is currently valued at less than CAD 200 million.

Rheinmetall: German government wants more ammunition

When will the Rheinmetall share break out of its consolidation and reach new highs? The fact that this has yet to happen is likely due to the already high valuation. On the other hand, Germany's largest armaments company - and future sponsor of Borussia Dortmund soccer club - is reporting one order after another.

Just yesterday, the magazine "Spiegel" reported a follow-up order from the German government. Citing a letter from the Ministry of Defense, the framework contract for the supply of 155 mm artillery ammunition worth EUR 880 million has been increased again. According to the letter, a further 200,000 shells have been ordered from Rheinmetall. The shells are primarily used in the self-propelled howitzer 2000, and are urgently needed in Ukraine.

The Lithuanian government awarded Rheinmetall the contract to construct a new ammunition factory on Monday. **The armaments group will receive more than EUR 180 million from the NATO country for the construction of the plant. 155 mm artillery shells, in particular, will also be produced there in the future. According to the Lithuanian government, this will create 150 new jobs. Rheinmetall already operates a maintenance centre in Lithuania together with Krauss-Maffei Wegmann to service vehicles of the NATO troops stationed in the Baltic states, as well as the Leopard 2 tanks handed over to Ukraine by Germany.

Nel ASA: Share is running out of steam

The Nel ASA share has gained just over 40% in the past four weeks, but it is slowly running out of steam. In the past five days, it has fallen by almost 15%. The news flow has been quite positive recently.

The stock market listing of Nel subsidiary Cavendish Hydrogen ASA is taking shape. Several investor meetings are planned for this week. If the Nel Board of Directors agree that the Cavendish shares will be distributed to Nel shareholders as a dividend in kind, the listing on the Oslo Stock Exchange could take place this month. The banking consortium responsible for the spin-off includes Carnegie AS, Arctic Securities AS, and Fearnley Securities AS.

An order was also announced before the start of the investor talks. Cavendish Hydrogen has received an order from Alperia Greenpower SRL for the supply of hydrogen refueling systems for a site in Bruneck in northern Italy. The order has a total value of around EUR 3.8 million and includes a two-year service and maintenance agreement. The filling station is scheduled for completion next year, in time for the 2026 Winter Olympics. During the mega-event, light and heavy fuel cell electric vehicles will be used for transfers between the Olympic sports venues and refueled by Alperia. Cavendish Hydrogen CEO designate Robert Borin: "We are delighted to have been selected by Alperia as the supplier for their first hydrogen refueling station. It will also be Nel's first H2Station™ installation in Italy, and we look forward to delivering and demonstrating our performance and capabilities in this flagship project."

While the order reported by the Nel subsidiary is good marketing, it is small. The spin-off of Cavendish Hydrogen may also be a step in the right direction, but it is far from solving Nel's problems - hardly any new major orders and high operating losses. By contrast, things are looking much better at Almonty and Rheinmetall. The Almonty share price shows that investors believe in the opening of the tungsten mine in South Korea. Now the Company just has to deliver, then the share price should have significantly more potential.