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December 15th, 2023 | 07:10 CET

Telecommunications and Energy with Almonty Industries, Vodafone and RWE - where is it worth starting?

  • Mining
  • Tungsten
  • renewableenergies
  • Telecommunications
Photo credits: Vodafone Group Plc

At the Dubai Climate Conference COP28, 22 countries agreed to the expansion of nuclear power. A low-CO2 and highly efficient form of energy generation, albeit with some associated risks. However, the construction of nuclear power plants requires a very special metal: tungsten. This is reason enough for investors to take a closer look at the Almonty Industries share. Almonty Industries is a company that focuses on tungsten extraction and production and operates exclusively in democratically governed countries. Tungsten is used in the telecommunications industry, among others. For Vodafone, a European and African company in this segment, the raw material tungsten is essential for further growth. The Group has been in crisis to date. How far have they progressed in the turnaround? For those who focus more on energy providers than suppliers like Almonty, RWE is a must. RWE generates and trades electricity in the Asia-Pacific region, Europe and the United States. Find out here where new projects and further cash flows are opening up.

time to read: 5 minutes | Author: Juliane Zielonka
ISIN: ALMONTY INDUSTRIES INC. | CA0203981034 , VODAFONE GROUP PLC | GB00BH4HKS39 , RWE AG INH O.N. | DE0007037129

Table of contents:


    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

     

    Almonty Industries secures USD 13.7 million for tungsten mine in South Korea

    Almonty Industries is pleased to announce good news. The wholly owned South Korean subsidiary 'Almonty Korea Tungsten Corporation' is utilizing a USD 13.7 million loan from KfW Bank to recommission the Sangdong Mine in South Korea. This amount is the 6th tranche of a USD 75.1 million loan. Lewis Black, President and CEO of Almonty commented: "As planned and on schedule, Almonty will now receive its sixth disbursement of the USD 75.1 million loan from KfW, bringing the total amount disbursed to date to USD 53.9 million."

    The Sangdong Mine has one of the largest tungsten resources in the world. Almonty Korea Tungsten is the leading global tungsten producer with more than 40 years of experience, and with this mine, it has the potential to produce 50% of the world's tungsten supply outside of China.

    The Almonty Korea Tungsten property is located 187 km southeast of Seoul, approximately a 3-hour drive via highways and local paved roads. The nearest settlement is the village of Sangdong, about 0.5 km away, and the city of Taebaek, about 30 km away, with a population of about 60,000.

    Investors who recognize the importance and scarcity of this raw material resource outside China will see the opportunity for a long-term investment. The location in South Korea makes it so enticing in the face of geopolitical sabre-rattling. Investing in Tungsten can be a rewarding venture for astute investors looking for growth and stability. Tungsten, known for its exceptional hardness and high melting temperature, is a critical metal in several industries, including aerospace, electronics and manufacturing. The Almonty share is trading at EUR 0.34.

    Will Vodafone achieve the turnaround? Shares down over 4% after half-year loss

    Shares in Vodafone fell 4% after the UK telecoms group published its half-year report. The fall is attributed to Vodafone's move to a net loss of EUR 155 million in the first half of the year, compared to a profit of EUR 1.2 billion a year earlier. This resulted in a 44.2% decline in operating profit due to the reduction of the Company's stake in tower operator Vantage Towers, Vodafone's operations in Hungary and Ghana, and unfavourable exchange rate effects.

    Another factor is the loss of EUR 51 million from joint ventures and investments, particularly at VodafoneZiggo in the Netherlands. The slight recovery in the overall performance nevertheless shows continuing financial challenges for the Group.

    Germany accounts for 31% of Vodafone's Group revenue, which had previously declined for five consecutive quarters in the country. The German performance contributed to a 4.7% increase in organic service revenue growth over the period to EUR 9.5 billion, the highest in around 15 years. However, the Company, which is in the midst of a turnaround, is battling monopolistic forces in its largest market. Meanwhile, the CEO of Vodafone Germany, Philippe Rogge, is making serious accusations against Deutsche Telekom in the dispute over fiber optic expansion. According to Rogge, Deutsche Telekom is charging "considerable" fees for the use of empty conduits under its control. According to Rogge, these costs will soon reach "astronomical prices", twelve times higher than in other European countries. The manager also emphasizes that many of these empty conduits were laid in the past by the Federal Post Office and thus financed by the taxpayer. The share is currently trading at EUR 0.78.

    RWE secures wind farm contract off the west coast of Japan in billion-dollar project

    RWE, together with its Japanese partners Mitsui and Osaka Gas, has been awarded the contract by the government for the development, construction and operation of a wind farm off the west coast of Japan. The Company's offshore subsidiary will work in a consortium with the aforementioned Japanese companies. The planned wind farm, with a capacity of 684 MW and expected to consist of 38 wind turbines, is scheduled to be fully operational by June 2029.

    "This success marks a milestone for RWE in offshore wind tenders in Japan and throughout the Asia-Pacific region," explains Markus Krebber, CEO of RWE. The manager is driving the Company's transformation into a leading green energy giant and is focusing on offshore wind farms, both domestically and internationally.

    Japan is an economy with the world's fifth largest oil consumption and currently meets 97% of its 2022 demand through imports due to a lack of domestic resources. Despite a 3% decline in imports, Japan will surpass China as the world's largest LNG importer in 2022. Renewable energy (10%) and nuclear energy (3%) account for the smallest share of primary energy consumption in 2021 but show the only growth since 2015. Fossil fuel consumption is declining, while renewable energies accounted for 7% and nuclear energy for less than 1% in 2015. This is astonishing, given that 22 countries rely on nuclear power according to COP28.

    In addition to new projects, RWE is also receiving money from the German government. This week, the EU Commission approved state aid of EUR 2.6 billion that Germany is paying the energy company RWE for the early closure of its lignite-fired power plants in the Rhineland. According to the German coal phase-out law, coal will no longer be used for power generation by 2038. RWE's share price stands at EUR 42.10


    Investors looking for long-term growth and stability find a promising opportunity in the tungsten market with Almonty Industries. Almonty Industries, specializing in tungsten mining and production in democratic countries, once again successfully secures funding for the expansion of its Sangdong Mine in South Korea. Tungsten, a crucial metal in various industries such as telecommunications, is proving to be an essential raw material for the further expansion of digitalization. The focus on sources outside China is particularly valuable here. Almonty offers exactly that. Despite a half-year loss, Vodafone is in the midst of a turnaround. The German market, which accounts for 31% of Group sales, is showing slight signs of recovery. Nevertheless, Vodafone is facing challenges due to monopolistic behaviour by Deutsche Telekom, especially in the expansion of fibre optics. However, the focus on the German market is crucial for Vodafone's economic future. Energy supplier RWE secures a major wind farm contract off the west coast of Japan for the first time. Meanwhile, the EU Commission approves EUR 2.6 billion in aid from the German state for the early decommissioning of lignite-fired power plants, strengthening RWE financially and driving its transformation into a leading green energy giant.


    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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    Der Autor

    Juliane Zielonka

    Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.

    About the author



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