April 19th, 2023 | 07:45 CEST
Surprise! Extra returns beckon here: Commerzbank, JinkoSolar, Blackrock Silver
When undervalued real estate or other investments are hidden deep in balance sheets, it is a positive surprise for shareholders. However, when companies develop a new business field out of nowhere, the positive effects are even greater and more sustainable. We shed light on three companies with more potential than meets the eye.
time to read: 4 minutes
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Author:
Nico Popp
ISIN:
COMMERZBANK AG | DE000CBK1001 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , Blackrock Silver | CA09261Q1072
Table of contents:
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
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.
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Commerzbank: Light at the end of the startup tunnel
The Commerzbank share has been the talk of the town in recent weeks. The reason was the banking crisis. The market had even bet against German institutions for a while. But in the meantime, the world looks different again: The SVB shock has been digested, and the share is trading in positive territory again. Reason enough to focus on possible positive surprises at Commerzbank. Only recently, the banking association BdB called the institutions in Germany and the EU "robust". That the crisis has little effect on many large banks was also shown by the figures of JPMorgan Chase a few days ago, which clearly exceeded all analysts' expectations in the first quarter of the year.
Investors could conclude from this that major European banks are also benefiting from this effect. In the case of Commerzbank, there is also the fact that the institution is considered a leader in fintech investments. The investment vehicles Commerzventures and Main Incubator have been very successful in the past and completed several successful exits. But what is the current state of the startup industry? A few weeks ago, the Startup Association reported a positive development after a pitch-black 2022: around two-thirds of the founders surveyed expect business to develop more favourably in the coming months. While this is unlikely to trigger any hype yet, there may also be promising exits around startups again in the coming years. Commerzbank is likely to have some exciting investments up its sleeve that are currently not being fully considered by the market. However, the banking business remains relevant for the share price.
Blackrock Silver: Good lithium news from Tearlach Resources
Blackrock Silver also has a promising perspective on additional business. The Company operates gold and silver projects and reports 2.97 million tonnes with a silver content of 446 g/t for its Tonopah West project. The Company also made a significant discovery at its second project, Silver Cloud. Currently, however, Blackrock Silver is making a splash around lithium. Blackrock is working with Tearlach Resources and has entered into an agreement with the Company whereby Tearlach can earn a majority interest in a potential lithium discovery at Tonopah North. On Tuesday, Tearlach announced several drill results, all of which showed more than 1,000 ppm lithium.
Andrew Pollard, president and chief executive officer of Blackrock, said: "The initial drilling at Tearlach shows that the lithium-bearing system at the project is potentially much higher grade and wider in extent than originally thought. The results reported today were drilled in a 4.12 sq km area, significantly increasing the extent of mineralization. With results from 6 additional step-out drill holes still pending, Tonopah North is rapidly revealing significant size potential comparable to known adjacent lithium deposits. The Tonopah Lithium Belt hosts some of the largest lithium deposits in North America, and our land holdings represent the strategic intersection where it intersects with the Tonopah Silver District. Tearlach is proving to be an excellent partner with immense technical capabilities. We look forward to watching the project continue to take shape as Tearlach strives to advance it to an initial mineral resource estimate by year-end." For Blackrock Silver, the developments around the Tonopah North lithium deposit are positive. Firstly, they increase the value of the Company and have the potential to inject cash into Blackrock Silver's coffers. Shareholders could then possibly forego capital increases and the associated dilution of old shares. The share price of Blackrock Silver developed positively in the past month and could now also transition back into favourable waters in the long term.
JinkoSolar: Recycling is becoming increasingly important
A lucrative additional business also lies dormant behind JinkoSolar. The Company is considered a leader in the production of photovoltaic modules and also operates solar parks. In addition, JinkoSolar also focuses on the recycling of silicon. A few days ago, the Company reported that its recycling plant for PV modules, completed in 2022, achieved recovery rates of 95% for silver, silicon and copper. The Company emphasizes that the share of old PV modules that need to be recycled will grow in the coming years and can therefore imagine creating further recycling capacities. This is positive news for shareholders - after all, recycling lowers JinkoSolar's carbon footprint and should also reduce costs.
It is worth taking a closer look at companies, as there are often business areas hidden behind the scenes that could become interesting in the future. While startup investments do not play a significant role at Commerzbank at the moment, recycling around regenerative energy is definitely interesting. Such additional business is even more important for small companies like Blackrock Silver. Here, thanks to the newly discovered lithium deposits on precious metal properties, there is not only a windfall but also the option of promising long-term participation as a minority shareholder. Given a market capitalization of only around CAD 70 million, investors should closely examine the constellation between Blackrock Silver and Tearlach Resources.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
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