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Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
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+1 (647) 438-9766

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Dirk Graszt
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Trettaustr.32, 21107 Hamburg (DE)


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01. November 2021 | 10:29 CET

Shell, Sierra Grande Minerals, K+S: 4.1% inflation - here is how investors counteract it

  • Commodities
Photo credits:

Inflation in the eurozone climbed to a new record in October - at 4.1%, one can confidently speak of inflation. At the same time, the European Central Bank (ECB) continues to adopt a wait-and-see approach. Although the markets are pricing in an interest rate hike in the eurozone, analysts and the ECB believe these expectations are premature. Given the stuttering economic recovery, it might make sense from the central bank's point of view to delay the exit from the ultra-loose monetary policy a little longer - with all the risks.

time to read: 3 minutes by Nico Popp
ISIN: ROYAL DUTCH SHELL A EO-07 | GB00B03MLX29 , Sierra Grande Minerals | CA82631L1085 , K+S AG NA O.N. | DE000KSAG888

Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview



Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author

Shell: Good, but there are better things

So far, ECB chief Christine Lagarde and co. are assuming that inflation is only temporary. Still sputtering supply chains and lower energy supplies may have accounted for this temporary effect, optimists say. But inflation can feed on itself. As people bring forward purchases in the face of rising prices, prices keep rising. Such an effect is already being felt in real estate or even services, such as trades. For oil companies, such as Shell, the current inflationary episode is a good market environment - after all, margins are rising.

According to many experts, such as Deutsche Bank's chief investment strategist Ulrich Stephan, the shares of Shell and other oil multinationals are still moderately valued - especially in Europe. Shell gained, nevertheless within the past three months around 20%. The Company also invests in renewable energy and outwardly presents itself as decidedly "green". That is also due to a judgment that the Company had to accept some time ago, which forced it to become climate-neutral faster than planned. If you look at the chart over the long term, Shell also still has potential. However, investors should not ignore the political headwinds facing fossil fuels. For smaller companies in the oil sector, there may still be greater opportunities.

Sierra Grande Minerals: 3 projects, less than EUR 5 million valuation

A small company with multiple opportunities is Sierra Grande Minerals. However, this is not oil, but gold, silver, molybdenum and copper in Nevada. The Company is developing three projects within the Getchel-Comstock-Trend and Walker Lane commodity belts. Not far away is also the well-known Carlin trend and numerous mines around gold and copper. Sierra Grande develops all of its projects at an early stage. That means that crucial preliminary work can be done already from small investments to get indications of raw material deposits and possibly even their economic extraction. Currently, the shares of Sierra Grande Minerals are valued at less than EUR 5 million - so the market's advance praise for the three projects is relatively low.

Sierra Grande Minerals has already announced results from more than 500 geochemical soil samples showing copper, molybdenum, and silver showings on the B&C Springs property. The next steps include further exploration work. The path Sierra Grande is on is clear: the clearer the potential of the properties becomes, the more likely the share price is to rise. While the current early stage is highly speculative from an investor's perspective, successful exploration would quickly lift the share into other spheres. A crisis development around inflation or distortions in the financial system could also provide a tailwind for the share. The stock is a highly speculative insurance policy against crises, which experienced investors can add to their portfolios.

K+S: Setbacks remain possible

The K+S share is also running like clockwork. The fertilizer specialist has always been a good choice when prices rise. Even during the inflation scare after the great financial crisis, K+S was one of the high flyers. After that, things went downhill for the Company: The salt business in the USA paralyzed the Company. Only the sale last year gave K+S room to maneuver. In the meantime, the financial situation has eased, and the inflationary market environment is playing into the Company's cards. However, investors should remember that the share price has already risen sharply and that K+S has anything but a solid balance sheet. Setbacks are possible at any time.

Investors who want to profit from the current situation with blue chips should prefer oil companies, such as Shell. In the case of K+S, there are still some question marks. In addition, agricultural commodities are not yet a major topic on the markets. Those ready for investments in second-line stocks can also take a closer look at Sierra Grande Minerals. Here is the chance to accompany three raw material projects from the beginning - with all opportunities and risks.


Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

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:

26. November 2021 | 12:37 CET | by Armin Schulz

Barrick Gold, Sierra Grande Minerals, Yamana Gold - False breakout in gold?

  • Commodities

On November 5, it seemed gold had finally broken out of its established triangle in the chart. However, since November 19, the bears have retaken the helm for the time being. Investors, who have otherwise relied on gold for inflation and other hedges, are still reacting hesitantly. One reason is the expansion of the money supply, which is displacing people's fear. Nearly all central banks see inflation as temporary. Another reason is the cryptocurrencies, which are also used as capital protection and thus represent competition. If interest rates rise, that would be a bad sign for gold. If inflation remains, global gold demand could increase, with demand from India and China already picking up. The newly formed uptrend in gold is only broken below USD 1,721.1 on a daily basis, so we currently expect gold prices to rise. We, therefore, analyze three gold companies.


17. November 2021 | 12:40 CET | by André Will-Laudien

Leoni, Sierra Grande Minerals, Varta, Nordex - Critical raw materials, skyrocketing prices!

  • Commodities

According to the active suggestions of many climate protectionists, we are all best off riding bicycles. Because the climate measures, in particular the CO2 taxes, will soon make movement with fossil fuels impossible. In October, the E10 fuel price reached the EUR 2.00 mark at some filling stations. As a result, 80% of the gasoline price target formulated by the Greens in the 1990s of 5 D-Marks has been achieved. Calculated on the oil price, a liter of refined fuel would only cost about EUR 0.60; the rest is made up of duties and taxes, as is well known. Interestingly, in the Federal Audit Office records, it is precisely the political climate protection protagonists who stand out with an impressive number of car trips and air miles. It seems that only some people are supposed to restrict themselves, while other more privileged groups enjoy a free ride. Is this the future of individual mobility?


28. October 2021 | 12:52 CET | by Fabian Lorenz

Nordex, Standard Lithium, Central African Gold: Raw materials for the energy transition

  • Commodities

The energy turnaround is supposed to save the climate and significantly reduce the consumption of fossil fuels. But what is often overlooked: In practice, this means that demand for other raw materials is rising massively. In the EU alone, demand for cobalt is expected to increase more than tenfold by 2030. Copper and lithium are also in hot demand. Nordex, for example, needs rare earths for the production of wind turbines. Standard Lithium benefits from the exploding demand for batteries and Central African Gold's raw materials are included in practically every future technology.