Spain is investing over EUR 400 million in critical raw materials: Deutsche Rohstoff, Group Eleven Resources, and Standard Lithium in focus

Group Eleven Resources: One of the most exciting exploration plays in the European commodities sector

Group Eleven Resources is positioning itself as one of the most exciting exploration plays in the European commodities sector. The company focuses on Ireland, where it is primarily advancing the PG West zinc, lead, and silver project at the Ballywire deposit. According to the company, this is the most significant new mineral discovery in Ireland in over a decade. Ballywire is also located in a highly attractive area. The Pallas Green deposit, operated by Glencore, lies only about 20 km away. What makes this particularly attractive is that the mineralization drilled by Group Eleven so far lies relatively close to surface and can already be traced over a considerable distance. The drilling has so far covered about 1.6 km of strike length; when combined with historical hits, this even yields a potential of about 2.6 km.

Furthermore, Group Eleven is not relying on a single zone, but on a larger geological system with significant potential for expansion. Data from Ballywire indicate four anomalies within a target area measuring approximately 6 by 2 km. So far, only one of these anomalies has been systematically drilled. This suggests that the discovery to date may be only part of a significantly larger mineralized trend. Nearly every drill hole reported to date has intersected mineralization, further underscoring the project's quality. The story is supported by an experienced management team, Ireland's strong mining infrastructure, and prominent shareholders such as Glencore and the prominent Canadian mining investor Michael Gentile.

Most recently, Ballywire reported positive drilling results again. Drill hole 25-3552-51 delivered particularly strong results, now showing mineralization over a total of 52.3 m at 10.3% zinc-lead, 330 g/t silver, and 0.40% copper. In addition, several new copper-silver zones were intersected at greater depths. This supports the hypothesis that the copper- and silver-bearing structures could extend across the entire Ballywire discovery.

CEO Bart Jaworski therefore spoke of significant progress in understanding the deeper copper-silver target. With a solid cash position and the company's most ambitious drilling program to date, Group Eleven appears well-positioned to further demonstrate the value of this discovery in the coming months. These developments could also support the stock.

Deutsche Rohstoff: Analysts Recommend Buying

Deutsche Rohstoff AG is currently a high-flyer in the European commodities sector. In the current year alone, the stock has risen by around 75%. Over the past 12 months, the price gain stands at nearly 150%. The stock is currently trading at EUR 87, and according to mwb research, triple-digit prices are possible. Following the release of preliminary figures for fiscal year 2025, analysts have confirmed their "Buy" recommendation and raised the price target from EUR 97 to EUR 100. From the experts' perspective, the company is performing better than expected, remains financially flexible, and is well-positioned to benefit disproportionately from a favorable market environment for oil and gas. In addition, there is the updated valuation of its stake in tungsten producer Almonty Industries.

According to mwb research, both revenue and EBITDA in 2025 exceeded expectations. Deutsche Rohstoff's revenue climbed to EUR 195.1 million, surpassing even the upper end of its own forecast range of up to EUR 190 million. EBITDA reached EUR 132.0 million, also landing at the upper end of the target range. This is particularly noteworthy given lower oil prices, a weaker US dollar, and additional one-time costs of around EUR 10 million. For analysts, this demonstrates that the company's core business remains robust even in a more challenging market environment.

mwb research also views the company's financial flexibility positively. Operating free cash flow stood at around EUR 25 million in 2025, while net debt fell to EUR 150 million. With EUR 65 million in cash and cash equivalents, a low hedging ratio, and a 46% increase in reserves, the company has, in the analysts' view, considerable leeway to flexibly adapt its drilling program to the price environment. For the current year, analysts expect revenue of EUR 182.2 million and EBITDA of EUR 127.4 million. Earnings per share are projected to rise from EUR 6.03 to EUR 6.58.

Standard Lithium: When Will the Investment Decision Be Made?

And what is Standard Lithium, the American lithium hopeful, actually doing? The stock has underperformed so far this year, declining by just over 6%. Since the price surge between April and October 2025, the stock has been trading sideways. Currently, investors appear to be waiting for the final investment decision on the South-West Arkansas project, developed jointly with Equinor.

There was at least a sign of life last week. The company has signed its first commercial offtake agreement. The contract partner is the commodities trader Trafigura. The agreement stipulates that the Smackover Lithium joint venture will supply 8,000 tons of battery-grade lithium carbonate annually over a ten-year period once commercial production begins. Financial details were not disclosed. However, according to the companies, the pricing structure is designed to support the planned project financing.

The joint venture, in which Standard Lithium holds a 55% stake and Equinor a 45% stake, aims to achieve an annual production capacity of 22,500 tons of lithium carbonate in the first phase of the project. In total, contracts are expected to be signed for approximately 80% of the capacity. According to Standard Lithium, advanced discussions are already underway with other interested parties. The offtake agreements are considered a key component for financing and for the planned final investment decision.

Strategically, the agreement is significant for Standard Lithium because it moves the company's project further toward a construction decision and financing. As early as December 2025, the joint venture reported that it had received expressions of interest for debt financing totaling more than USD 1 billion. The company announced that it would provide another update on customer contracts and plans for the final investment decision when it releases its fourth-quarter 2025 results.

Commodities will remain an exciting investment theme in 2026. Hopefully, Europe will step up its game in this area. Group Eleven Resources is an interesting explorer with operations in Europe. The stock is still relatively unknown in Europe, but that is currently changing. Deutsche Rohstoff has already performed very well and is likely to slow its pace going forward. As for Standard Lithium, there is currently no compelling reason to buy the stock.