The new cold war over strategic metals! The buying frenzy continues at Almonty, Rheinmetall, TKMS, and RENK

Almonty Industries – All eyes are on 2026

The stock market is not a one-way street! This is also reflected in the price of Almonty Industries. Although there are several reasons for further appreciation, the stock markets are tending toward a slight correction in the current autumn phase, following the recent strong rally in favor of rare or strategic metals. Almonty is in good company in this correction, as the shares of Critical Metals, Energy Fuels, and MP Materials have also trended sharply downward. Long-term investors should not worry after such adjustments, because in purely statistical terms, the following is now happening: Early entrants who are sitting on high profits are realizing their gains in a setback. Buyers are now more likely to be cautious investors with a long-term view. As professionals say, ownership is shifting from weak to strong hands. Investors should therefore view the current correction of around 30% from the top as a shift from short-term to medium-term, with a significant improvement in the average price.

Those who have not already been buying steadily in the uptrend should therefore take courage and increase their holdings now.

Brokerage firms such as Oppenheimer and D.A. Davidson feel quite comfortable with a 12-month target of CAD 12. And from today's perspective, there is still plenty of room for growth of 33%. As a reminder, the South Korean Sangdong mine will begin production by 2026, and drilling continues in Portugal to increase production capacity. The recently acquired US project in Beaverhead County is also likely to boost the production curve significantly from 2030 onwards. For the US and international producers, this is a strong statement in favor of Western raw material independence. CEO Lewis Black said of the Montana acquisition: "The Gentung Browns Lake project is one of the few advanced tungsten projects in the US that can move quickly into production. This acquisition allows us to import Almonty's proprietary tungsten processing and mining technologies and expand our global presence and resource base into the US market!" Long-term investors are not wasting any time and are betting on the 5-year outlook, which continues to point to a multiplication of the share price.

The new cold war over resources is also the subject of Lyndsay Malchuk's interview with Christopher Ecclestone. Click here for the video.

https://youtu.be/rS5d3TmltBI

Rheinmetall versus TKMS – Those who charge high prices must also be able to deliver

One buyer of tungsten products is Rheinmetall; as a result, the needs of the defense industry are directly linked to the delivery capabilities of producers such as Almonty Industries. In addition to supply chain relationships, the Düsseldorf-based defense technology manufacturer also attaches great importance to its own ability to handle orders with a high degree of sensitivity and to process them on time and in a professional manner. A recent example of a frigate order from Berlin shows that this is not always a smooth process. Last week, a stock trader considered a report in the "Bild" newspaper to be damaging for Rheinmetall, according to which Defense Minister Boris Pistorius is said to have questioned a billion-euro deal because there are reportedly significant problems with the order for six new frigates. According to the report, the project, with current costs of nearly EUR 10 billion, is significantly over budget and also behind schedule.

According to the newspaper, the federal government is now reportedly considering measures. A more precise recalculation of costs is expected, as ships produced by TKMS, priced at just under EUR 1 billion each, offer potential savings. TKMS has been restructured and, as a committed industry player, naturally has a strong interest in securing orders. Competition stimulates business, and this pressure contributed to a 5% drop in Rheinmetall's share price on Friday. TKMS, which was spun off from thyssenkrupp, managed to recover slightly, climbing from EUR 69.20 to EUR 70.80. For investors, the key factor remains where Berlin invests; for taxpayers, more consistency in the awarding of contracts would be desirable. Analysts on the LSEG platform expect 12-month targets of EUR 2,163 for Rheinmetall, though the stock has traded between EUR 1,520 and EUR 2,005 over the past six months – the big rally appears to be over!

RENK – Good figures, but little euphoria

It is not uncommon to see price swings in direct connection with analyst conferences. However, there has been little movement in the shares of Augsburg-based special gear manufacturer RENK following the 9-month figures. With a 19.2% increase in sales to EUR 928 million, the Bavarian company is heading for record figures, but some analysts had expected more momentum after the change in management in the spring. The biggest driver for RENK was, of course, the defense business, which grew by 25.2% to EUR 690 million, now accounting for 70% of consolidated sales. Adjusted earnings rose by more than a quarter to EUR 141 million, and new orders worth EUR 1.25 billion (+45%) caused the order backlog to explode to a record EUR 6.4 billion. According to Adam Riese, that is almost five times the annual sales.

Management is consistently raising its forecasts and now expects annual revenue of EUR 1.3 billion and earnings in excess of EUR 210 million. CFO Anja Mänz-Siebje comments: "Our order backlog is at an all-time high and now secures five times our current annual sales. This gives us an extremely solid foundation for the coming years and high visibility of our business development." Expectations prior to the figures were likely higher, as the share price fell by around 33% in the last four weeks. We had often pointed out the overvaluation of RENK, and now the chart has finally reacted. The 2027 P/E ratio has fallen from 5 to 3.5 in parallel – a first step toward normality.

The stock market is currently consolidating, a development that can only be described as healthy. Investors who recognize this are now crossing paths with those bold enough to re-enter the market. The bottom line is that entry prices are rising, unlocking new upside potential for the protagonists of the current bull market.