The critical resource: How Antimony Resources protects Rheinmetall and BASF from shortages and why it has upside potential

Antimony Resources – Exploration momentum in New Brunswick

The drills are currently turning at Antimony Resources. The Company is systematically working its way through the subsoil at its flagship Bald Hill project in New Brunswick. A new technical report was recently presented, which re-evaluates the potential of the deposit. The model indicates a significant volume of antimony-bearing rock. However, it is important to note that this is not yet an economic resource, but purely geological potential. The ongoing drilling campaign aims to fill gaps in the model and deepen understanding of the mineralization. Initial reports from the field indicate consistent success.

What makes Bald Hill really interesting is the exceptional quality of the deposit. According to the model, the average antimony grades are significantly higher than those reported by other highly regarded projects in North America. Individual drill results from the past even showed extremely high values. In future mining operations, such a high antimony grade would be a decisive cost advantage, as less rock would need to be moved and processed to produce the same amount of semi-metal. The project is thus positioning itself as potentially the highest-grade antimony deposit.

The next steps are clearly outlined. The current drilling phase is expected to be completed by the end of the year. Its goal is to provide sufficient data for the definition of an initial resource according to international standards in the first quarter of 2026. Early environmental studies are already underway in parallel to save time later on. A production decision is therefore realistically still about three years in the future. Given the strategic importance of antimony, a metal that is important for defense and the energy transition but has a strained supply chain, the market is watching such methodological progress with particular interest. The stock is currently trading at CAD 0.445.

Rheinmetall – Strategic focus and operational strength

Rheinmetall is undergoing a clear strategic shift. In December, the decision was made to sell the civilian power systems division in order to focus entirely on the defense business. This step underscores the Company's desire to become a pure defense contractor. Although the move is accompanied by a write-down of EUR 350 million, it strengthens the Company's profile in the long term. Negotiations with two interested parties are already underway, and the planned completion in the first quarter of 2026 would seal this focus. Rheinmetall is thus responding to the continuing high demand for defense technology solutions.

Operational demand remains unbroken, as recent major orders show. The German Armed Forces ordered an additional 50,000 sets of special hearing protection worth over EUR 130 million. Also in December, the Netherlands ordered Skyranger 30 air defense systems worth hundreds of millions of euros. This unique, flexible configuration is already attracting interest from other NATO partners. In addition, Rheinmetall successfully demonstrated its Skyspotter drone defense system under realistic conditions in Finland, underscoring its technological leadership.

The financial fundamentals provide support. After nine months of 2025, the Company recorded a 19.9% increase in revenue to EUR 7.5 billion. Adjusted operating profit rose by 18.4% to EUR 835 million. Pro forma revenue growth of 30-35% is now expected for the full year, with an operating margin of between 18.5% and 19.0%. Free cash flow in the Defense segment exceeded expectations. This solid foundation supports the Group's long-term growth strategy. The share is currently trading at EUR 1,516.50.

BASF - Sharpens its portfolio with targeted sale

BASF continues to consolidate its portfolio. This time, it has arranged the sale of its optical brightener business. The buyer is the specialty chemicals company Catexel. This niche was previously part of the Care Chemicals division and employed around 80 people at a production site in Switzerland. The deal is expected to be completed in the first quarter of next year. For shareholders, this sends a clear signal that BASF is consistently sharpening its profile and divesting activities that no longer fit its long-term strategy. Such targeted sales ultimately ensure a leaner allocation of capital.

At the same time, BASF has cleared an important hurdle for its largest production site. In Ludwigshafen, management has agreed on a new pact with the works council that rules out redundancies for operational reasons until the end of 2028. If the site achieves the agreed profitability targets, the agreement can even be extended by two years. In recent years, the headquarters, with over 30,000 employees, has been deeply in the red in operational terms. The new regulation is intended to restore competitiveness and focuses primarily on natural fluctuation and targeted training. For investors, this agreement takes noticeable pressure off their shoulders, as it ensures industrial peace and reduces a significant risk of uncertainty.

Innovative strength remains a central pillar for the future of BASF. At a research conference, the Company emphasized that around 80% of its classifiable R&D activities serve sustainability goals. Specific projects include "loopamid" for recycled polyamides, the development of methane pyrolysis for emission-free hydrogen production with ExxonMobil, and herbicide-tolerant cotton varieties. In addition, digital tools such as an AI-supported knowledge platform and automated reactor experiments are significantly advancing efficiency in research. This focus ensures long-term competitiveness in a transforming market. The share price is currently trading at EUR 43.93.

Strategic access to critical raw materials is becoming a decisive competitive advantage. Antimony Resources is advancing the exploration of a potentially high-grade deposit and positioning itself as a future supplier in an increasingly constrained supply chain. Rheinmetall is sharpening its strategic focus through the planned sale of its civilian business while benefiting operationally from continued robust demand for defense equipment. BASF is demonstrating resilience amid market turbulence by streamlining its portfolio and underlining confidence through extensive capital repatriation. The interplay of resource security, strategic focus and financial stability forms a compelling triangle with long-term potential.