Menu

Recent Interviews

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.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


21. July 2021 | 11:00 CET

Standard Lithium, Almonty Industries, Newmont: Invest in the super commodity

  • Tungsten
Photo credits: pixabay.com

Achieving climate change requires political will and suitable raw materials. Solar cells, wind turbines and batteries for electric cars and associated motors rely on critical metals. This new industrial demand is turning the raw materials market upside down. Added to this is general progress: new processes often require new raw materials, whether in medical technology or research. Reason enough to keep an eye on the raw materials sector.

time to read: 3 minutes by Nico Popp
ISIN: STANDARD LITHIUM LTD | CA8536061010 , ALMONTY INDUSTRIES INC. | CA0203981034 , NEWMONT CORP. DL 1_60 | US6516391066


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

 

Author

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


Standard Lithium: What uplisting means

The Standard Lithium share shows that raw materials are anything but boring investments. The Company is poised to become the lithium supplier of the USA. This prospect has led to spectacular price gains on the stock market: the share price has risen by almost 50% during the past three months alone. What is the reason for this, and is the hype sustainable?

Standard Lithium recently switched to the New York Stock Exchange. Such an uplisting usually draws the attention of new investor groups to a share, including funds or ETFs whose investment universe is in that particular stock market segment. The Standard Lithium share, for example, was included in the ETF portfolio of the provider REMX. The stock's appreciation suggests that it was undervalued in previous months and that the market is shedding valuation discounts with the stock's new visibility. But ETFs, in particular, aren't exactly considered the smartest investment vehicles. Buying is usually done solely based on membership in a specific index. When a new inclusion in an index meets with low liquidity of the stock, such price movements occur. As a result, many existing shareholders sit on book profits. Since the share has not shown momentum for a few days, these old shareholders could soon lose their nerve. A new entry does not make sense here.

Almonty Industries: Tungsten as the raw material of the commodity sector

The share of Almonty Industries also ran sideways in the past three months. The specialist for tungsten already operates tungsten projects in Southern Europe and recently celebrated a Groundbreaking ceremony for one of the world's largest tungsten mines in South Korea. The Sangdong mine is the largest tungsten project outside China. The mine is of great strategic importance, as China dominates about 85% of the global tungsten market. Many people know tungsten as the filament in classic light bulbs. But the metal can do more. It has unique properties in heat resistance, which is why it is also used in aerospace, and the mining industry uses tungsten drill heads, for example.

Given the extremely tight tungsten market and China's large market share, tungsten can be considered a critical metal. As new technologies require more and more raw materials to be extracted, the demand for drill heads is also increasing, as is the general need for heat-resistant alloys in industry. The Sangdong mine is being financed by the German Kreditanstalt für Wiederaufbau, among others. In addition, supply contracts have already been signed with the Plansee Group from Austria for the next fifteen years. The equity research analyst First Berlin defined a price target of CAD 1.50 for the shares of Almonty Industries - currently, the value is trading at about half.

Newmont: What can the big ship do?

If you want to invest in commodities, you could also get the idea of betting on the heavy ships of the industry. A typical representative is the world's largest gold producer, Newmont. The Company also has copper on offer. The latter commodity, in particular, offers investors a stake in some future trends, such as electromobility. In addition, Newmont has been able to increase its sales in recent months due to higher commodity prices. With a giant corporation like Newmont, it is also essential to remain efficient, and here management has applied the red pen and effectively cut costs. Shareholders were also rewarded, receiving higher dividends. However, with a dividend yield of around 2%, the stock is still not a high flyer. The yield is also very limited - on a one-year view, the stock fell by about 2%, so it was a zero-sum game for shareholders even after dividends.


The Newmont share is quite solid and has a little to do with raw materials - but nothing more. The copper business is hardly a factor in the share price. In contrast, stocks like Standard Lithium show what is possible with commodity stocks. While the lithium share has already reached a high drop height for the reasons mentioned above, the metal tungsten, which is only dull at first glance and which Almonty Industries will mine in the largest mine outside China, could be a welcome alternative for investors.


Author

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:

19. October 2021 | 12:46 CET | by Carsten Mainitz

Nvidia, Almonty Industries, BP - Scarcity drives prices!

  • Tungsten

The shift from fossil fuels to renewable energy sources is increasing the need for industrial metals. Copper's excellent thermal conductivity, along with its corrosion resistance, ease of processing, strength, durability and formability, offer unbeatable advantages in solar thermal applications. Tungsten's properties also play an increasingly important role in power, lighting, medical and aerospace applications. Companies producing the critical metal have significant upside opportunities in this regard.

Read

13. October 2021 | 13:23 CET | by André Will-Laudien

BASF, Almonty Industries, Millennial Lithium, BYD - All sold out?

  • Tungsten

Anyone who can offer scarce raw materials today is in a fortunate position as far as business prospects are concerned. In particular, metals and battery raw materials are in high demand and have become a bone of contention in globalization. That is because many critical metals are majority-owned by China, meaning that the regime decides on potential allocations to foreign countries. Admittedly, the Middle Kingdom wants to stay in business with the West, so long-term contracts exist. Nevertheless, the domestic industry is naturally given preferential treatment; we can only hope for political stability and incremental improvements in the West. Who are the interesting players in the tight commodity market?

Read

04. October 2021 | 12:36 CET | by Armin Schulz

BP, Almonty Industries, Standard Lithium - Which commodities offer the most potential?

  • Tungsten

Last Tuesday, the barrel of oil reached the USD 80 mark again for the first time since 2018, even though OPEC had recently increased production volumes. The discrepancy between supply and demand obviously could not be closed by the production increase. Comparing tungsten with gold, an investment in tungsten could beat gold by 70% since 2010. In the case of lithium, the price is also rising significantly. The automotive industry has decided to push ahead with its conversion to e-mobility in the interests of sustainability. So, the ambitious goal of charging only USD 100 per KWh of capacity in an e-car battery will not happen, making the price of e-cars much cheaper. Today, we take a look at three companies that produce these raw materials and analyze the potential.

Read