14. July 2021 | 09:03 CET
Standard Lithium, Blackrock Silver, NIU: Investing below the radar
Electric cars, wind turbines and solar cells: They all cannot do without critical raw materials. While lithium is closely associated with the boom in consumer electronics and electromobility, silver is familiar as an industrial metal at a second glance. Gold's little brother is still running in step with the best-known of all precious metals. However, analysts, such as those from Commerzbank, emphasize the growing importance of silver as an industrial metal and expect industrial demand for silver to reach record levels. We present three values around new technology and raw materials.
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ISIN: STANDARD LITHIUM LTD | CA8536061010 , Blackrock Silver | CA09261Q1072 , NIU TECH. ADR/2 A -_0001 | US65481N1000
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
Standard Lithium: How long will the party last?
One stock that has been causing a stir for a few days is Standard Lithium. A few days ago, the stock announced its intention to move from the open market of the OTCQX to a more highly regulated segment. Such a switch usually ensures that new groups of investors are interested in a stock. In the case of Standard Lithium, this move meets an already friendly market sentiment. Standard Lithium has set itself the goal of becoming the leading lithium supplier in the United States. However, the Company has not yet started production. The plans should become more concrete by next year, and corresponding production facilities will be built to process the lithium.
The Standard Lithium share climbed 34% in the past five days alone. On a three-month view, there is even a gain of about 95%. Over the past 52 weeks, the gain is even more impressive: 513% is probably every investor's dream. But how should investors deal with the share now? Given the performance to date, there is no reason to make a new entry. Those who have been following the stock for an extended period can consider taking some of the profits. Even if Standard Lithium should become a complete success story, investors should keep in mind that prices on the stock market move in waves - every rally takes a break.
Blackrock Silver: Drilling, drilling, drilling
The Blackrock Silver share has gained 30% in the past three months. On a one-year view, the value climbed by about 100%. Blackrock Silver is exploring for gold and silver in the US state of Nevada. Especially the latter metal is needed around future technologies, such as wind turbines and solar cells. Blackrock Silver's flagship project is Tonopah West, where the Company is drilling 40,000 meters this year alone. Results are expected to culminate in an updated resource estimate at the end of the year. Tonopah West is located amid developed infrastructure and is considered prospective. The Silver Cloud project to the north is at an earlier stage and will be explored more closely at 3,500 meters.
Also, Blackrock Silver is considering spinning off Silver Cloud and listing it separately because of its early stage. The goal: to leverage value for shareholders. When an exploration company has other promising properties in addition to a well-developed flagship project, the market often does not pay enough attention to them. Blackrock Silver is a stable value stock with a broad shareholder base, including institutions and super-rich people. Those who find silver and precious metals as a whole attractive should take a closer look.
NIU: Good numbers, but what is next?
Driving demand for critical metals are companies like NIU, among others. The up-and-coming Chinese automaker is making a name for itself with hip electric cars. The numbers are right, too: Between April and June, NIU sold a whopping 252,998 electric scooters. Compared to the previous year, this represents an increase of around 58%. The division is very important for NIU in terms of sales, contributing about 97%. The share price surged above the 200-day line in the wake of the exemplary figures. That is a positive signal for the stock. Nevertheless, investors should not fall into euphoria. As a rule, shares retest the 200-day line after a breakout. In addition, the electric fantasy is now also causing prices to rise at many established carmakers. NIU could occupy a good niche with its scooters. However, the involvement of VW and Co. could slow down the expansion of the Chinese carmakers. The stock is currently hot but not a sure-fire winner.
While the electric car sector and promising lithium companies are in the public eye, the stock market has been quiet about precious metal stocks. But this can be an opportunity for investors. The importance of silver as an industrial metal is growing and offers the potential for increasing demand outside the traditional precious metals market. Blackrock Silver is a growth company that continues to develop below the market radar. The value is thus worth a look.