Menu

Recent Interviews

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.


26. November 2021 | 13:09 CET

Steinhoff, Defense Metals, Deutsche Bank - Good news

  • RareEarths
Photo credits: pixabay.com

So now it has been presented, the new coalition agreement of the traffic light coalition, consisting of the SPD, FDP and the Greens. Besides the connoisseurs of cannabis, which is to be legalized in Germany, the banking and insurance industry should also be satisfied with the drafting. In addition, one focus of the alliance is on transformation in terms of the energy transition. The plan sounds optimistic, but implementation will be all the more difficult.

time to read: 3 minutes by Stefan Feulner
ISIN: STEINHOFF INT.HLDG.EO-_50 | NL0011375019 , DEFENSE METALS CORP. | CA2446331035 , DEUTSCHE BANK AG NA O.N. | DE0005140008


 

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


Ambitious goals

"The traffic light stands", Chancellor-designate Olaf Scholz proudly announced at the recent press conference to agree on a new coalition agreement. "We are united by our belief in progress and that politics can achieve good things," he said. Regarding climate protection, the alliance wants to go full throttle and significantly accelerate the expansion of renewable energies. As early as 2030, these are to supply 80% of the electricity required. Previously, the target was 65%. Currently, alternative energies are responsible for around 45%, depending on how strong the wind blows.

The timetable for electromobility is also more than ambitious. 15 million fully electric passenger cars are to be registered in Germany by 2030; previously, the target was 7 to a maximum of 10 million units. With this in mind, the current government is probably aware of the shortage of raw materials needed for the energy transition. For copper, an essential metal, there has already been a supply deficit since 2019. The prices of lithium, cobalt and nickel are shooting through the roof, and the excess demand is becoming more pronounced.

Scarcity is the defining issue

Demand far exceeds supply, even for rare earth metals. Added to this is that around 80% of the scarce commodity is produced in China, leading to a major drive by Western industrialized nations to install production facilities outside the Middle Kingdom. New projects are to be initiated with subsidy programs. However, it takes a good 10 years at best from plan to production. Rare earth metals are in great demand in industry today. The metals are becoming increasingly important in the aerospace and defense industries and through green energy technologies. They are just as essential in wind turbines and solar projects as they are for the permanent magnets in electric cars.

Promising project in Canada

By contrast, advanced projects ex-China are few and far between. Defense Metals, on the other hand, with a stock market value of EUR 17.75 million, can already point to significant successes. The Canadians hold an option to acquire 100% of the Wicheeda rare earth metals concession near Prince George in British Columbia. The project has Indicated Mineral Resources of 4,890,000t of light rare earth elements and Inferred Mineral Resources of 12,100,000t averaging 2.90% light rare earth elements. In 2021, in anticipation of positive results from the PEA, Defense Metals conducted a resource expansion and delineation diamond drilling program with 29 holes over 5,349m. The drill results are expected in the first quarter of 2022.

Defense Metals was recently able to announce its preliminary economic assessment results and updated mineral resource estimate for the Wicheeda deposit development. The evaluations resulted in a pre-tax net present value of the project of CAD 765 million. Average revenues are CAD 397 million per year from the sale of SEM concentrate (years 1-4) and mixed SEM/precipitates from the hydrometallurgical process (years 5-16) at an operating margin of 65.2%.

Craig Taylor, CEO of Defense Metals, commented as follows: "We are pleased with the positive results of the PEA for the Wicheeda Rare Earth Metals Project, which could become one of the most significant SEM projects in the world."

Good results from subsidiary

The further survival of trading group Steinhoff is still on shaky ground. The application for liquidation by the former Tekkie Town founders will not be dealt with by the Western Cape High Court in South Africa until the end of January. However, subsidiary Pepkor was able to shine with good figures.

The South Africans reported an increase in sales from ZAR 70.8 billion to ZAR 77.3 billion, equivalent to EUR 4.34 billion. Operating profit grew from ZAR 1.55 billion to ZAR 9.14 billion. Following a loss in the previous year, a profit of ZAR 4.88 billion was achieved this time.

The distribution to shareholders is to pay ZAR 44.2 per share. Despite the more than solid figures of the subsidiary Pepkor, we continue to advise against an investment in the parent company Steinhoff.

Deutsche Bank profits

Breathing a sigh of relief in Frankfurt. Contrary to assumptions, the coalition agreement does not include a ban on commissions in investment advice, which means that banks can continue to receive commissions from asset managers, among others, to sell the products.
From a technical perspective, the announcement comes at the right time. Despite the weak overall market, the share continues to push towards the resistance level at EUR 12. A sustained breach would generate a strong buy signal with an initial price target of EUR 16.


The coalition agreement is now available. Climate protection is being given top priority. The scarcity of raw materials could jeopardize the ambitious targets. Defense Metals operates a very promising project and enjoys long-term potential. Positive news should also boost the share price of Deutsche Bank.


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:

16. November 2021 | 12:56 CET | by Fabian Lorenz

Climate conference ends: Nel, Plug Power and Defense Metals continue with momentum

  • RareEarths

After two weeks, the climate conference in Glasgow has come to an end. The results are manageable. Although coal and other fossil fuels were declared to be phased out for the first time, the wording was watered down several times. For example, it was only possible to agree on a call that the use of coal-fired power plants without CO2 capture should be "gradually reduced". But even without concrete resolutions, one thing is sure: the energy turnaround is in full swing, and investor darlings Nel and Plug Power are again stepping on the gas. Defense Metals could be due for a reassessment after the completion of drilling.

Read

11. November 2021 | 11:36 CET | by Nico Popp

Nordex, Defense Metals, American Lithium: USA pushes lithium market - will rare earths follow?

  • RareEarths

The run on lithium has caused a furor on the stock market in recent weeks. Almost all companies with "lithium" in their names have made significant gains. The background to this is the governments' e-car offensive and a lot of government funding and subsidies for battery technology. The lithium required is held mainly in the ground by smaller companies. Investors who missed out on this wave may be wondering where the music will play next. To find out, one only has to spin the e-car story further: As Tesla, BYD or even VW's green runabouts are preferred to be charged with green electricity, rare earths could soon experience a similar hype. We present shares around the hype topics of e-mobility and the energy transition.

Read

02. November 2021 | 13:26 CET | by André Will-Laudien

BYD, NIO, Defense Metals - Save the climate, make a profit!

  • RareEarths

No one at the G20 meeting had expected any great leaps forward in climate policy - the participants had already made sure of that in advance by lowering expectations considerably. Nevertheless, there was a common goal before the summit in Rome: to send a strong signal for the UN Climate Change Conference in Glasgow. So postponed is not canceled. Of course, everyone is aware that this is the least that the heads of state and government of the 20 largest industrialized and emerging countries can do. After all, together, their countries are responsible for 80% of global greenhouse gas emissions. If they do not act, climate protection will be in a dire state. We take a look at exciting investments with climate relevance.

Read