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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.


24. November 2021 | 11:28 CET

SMA Solar, Royal Helium, RWE - Beware of inflation

  • Helium
Photo credits: pixabay.com

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.

time to read: 3 minutes by Stefan Feulner
ISIN: SMA SOLAR TECHNOL.AG | DE000A0DJ6J9 , ROYAL HELIUM LTD. | CA78029U2056 , RWE AG INH O.N. | DE0007037129


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

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Scarce raw material

Everything is getting more expensive. Whether it's steel, plastic, or even corrugated cardboard to send Christmas presents, it increased by over 40% YOY. Copper, lithium and nickel reached new highs on the futures exchanges. Even coal and oil, the fossil fuels that are supposed to disappear in the next few years due to climate change, multiplied since the Corona crash in March 2020.

The price curve for the chemical element with atomic number 2, helium, a colorless, odorless, tasteless, non-toxic gas, has also been pointing steeply upward for years due to a sharp drop in supply, the lowest in two decades. The element, which is critical according to the US government, is experiencing a considerable increase in demand right now from a wide variety of industries. It is a highly sought-after commodity in medical technology, semiconductor manufacturing, space exploration, fiber optics, nuclear power generation and other advanced technology sectors. According to market estimates, the global helium market could potentially double by 2030.

Government support

At just EUR 13.47 million, Royal Helium, a pure-play helium producer, is virtually unnoticed on the stock market. Yet, the Canadian company has the potential to become one of the big players in the market. In May 2021, Saskatoon-based Royal Helium announced a significant helium discovery at its Climax project, potentially one of the largest in Saskatchewan history. Covering over 400 sq km of land in southern Saskatchewan, test drilling at the Climax I to III projects showed commercially viable helium concentrations, allowing Royal Helium to move directly into production and generate cash flow. In addition, Royal Helium received drilling approval for its fourth helium well on the Climax block.

Strong support for the helium industry in the province of Saskatchewan comes from local politicians. The government has announced a Helium Action Plan to supply 10% of the global helium market share by 2030. Canada currently has the fifth-largest known helium resource in the world, with significant underground deposits in Saskatchewan. The province's unique geology allows helium to be extracted from dedicated wells that deliver high concentrations of the commodity but produce a low greenhouse gas emissions profile that is up to 99% less CO2 intensive than other countries.

"Royal Helium is proud to be playing a leading role in the sustainable development of Saskatchewan's world-class helium resources in partnership with our neighbors North American Helium and in collaboration with the Government of Saskatchewan," said Andrew Davidson, CEO of Royal Helium. "This is a tremendous opportunity for Saskatchewan to become a major supplier of helium, which is critical to the healthcare and high-tech industries both locally and globally."

Order from industry giant

Consolidation is the order of the day at SMA Solar, the maker of inverters for grid-connected, off-grid and backup photovoltaic systems, after a stellar surge following the announcement of its third-quarter figures. The stock, which posted double-digit gains last week, is currently consolidating in the range around EUR 45. According to management, the group can start the next year with a high order backlog, posted surprisingly strong increases in both EBITDA and net income, beating general consensus estimates. Despite global supply bottlenecks and a 4% YOY decline in sales, operating profit rose by a strong 30%. In particular, higher-margin products for smaller photovoltaic systems contributed to the positive result.

In addition, the Company from Niestetal in northern Hesse was awarded the contract by RWE to supply the system technology for the integration of the planned battery storage system, currently the largest lithium-ion storage system in Germany. SMA Solar is attractive at the current level, and the order situation is likely to improve further due to the tighter climate targets.


Scarcity is a problem globally for both households and industry. Helium is in increased demand, especially for medicine and aerospace. Royal Helium is a pure helium player and should benefit tremendously from local policies. SMA Solar is also well prepared for the future due to the expected continued strong order situation.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

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:

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.

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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.

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29. October 2021 | 10:23 CET | by André Will-Laudien

NEL, Plug Power, Royal Helium - Hydrogen rally, now it's rolling!

  • Helium

Only months ago, the comparatively expensive production of green hydrogen was put side by side with cheap Russian gas. Things can move that fast! The gas price has risen by 500% within 3 months, and the calculations are being recalculated. The explosive development of prices in the last 12 months shows how strongly shortages can affect the raw materials market. On average, known commodities increased by at least 25%, metals by 60-80% and energy doubled just like that. However, gas takes the cake with plus 600% in just 6 months, which gets the hydrogen industry buzzing. We take a closer look.

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