The secret profit chain: From zinc ore to steel to premium electric vehicles with Pasinex Resources, thyssenkrupp, and NIO

Pasinex Resources – High-grade focus in zinc mining

While many mining companies in the zinc sector are struggling with fluctuating prices and narrow margins, a Canadian zinc producer with Turkish assets is pursuing a high-grade strategy. Rather than maximizing volume, the Company targets ore with zinc content of 30–50%, which generates significantly higher raw metal value per ton mined. This approach is expected to support stable operating margins above 30%, providing a buffer in a volatile market.

The strategy is being implemented at the advanced Pinargözü and Sarikaya projects, both located in established mining regions and near surface, which reduces capital intensity and development timelines. The strategy is not purely new construction, but follows a consolidation model. The Company specifically bundles high-quality, often family-owned deposits to leverage operational synergies. No defensive stance is planned for 2026, but rather active expansion, including the construction of a new underground ramp at Pinargözü and systematic exploration at Sarikaya.

A key milestone was reached on December 12, when regulatory approval (MAPEG) enabled the complete acquisition of the Pinargözü operating company, giving Pasinex 100% control of its flagship mine. Together with the Sarikaya project, which was also recently acquired in its entirety, it is consolidating its operational base in Turkey. This unified control is intended to accelerate the implementation of expansion plans, which are set to begin in the first weeks of the new year with staff recruitment and development work. The share is currently trading at CAD 0.10 and has recently shown upward momentum.

thyssenkrupp - Steel under pressure

thyssenkrupp's steel division is dragging the entire group into the red. For the current fiscal year, the group is forecasting a net loss of between EUR 400 and 800 million. This enormous sum is almost exclusively attributable to the costly restructuring of Steel Europe. High provisions for the elimination of around 11,000 jobs and the drastic reduction in production capacity from 11.5 to less than 9 million tons are having a major impact here. Operating performance is suffering from weak demand and immense pressure from cheap imports.

The restructuring collective agreement negotiated with IG Metall now sets out the roadmap for the radical restructuring. The goal is clear: to reduce costs and increase competitiveness. In addition to massive job cuts and capacity adjustments, this also includes investments in future-proof technologies. The construction of a direct reduction plant in Duisburg is progressing, which should enable green steel in the long term, but is currently tying up capital. At the same time, talks are underway with the Indian steel group Jindal Steel about a possible sale of the entire division – a sign of the urgency of finding a solution.

While steel is struggling, other divisions of the group are providing reasons for cautious optimism. The successful IPO of the marine subsidiary TKMS was a significant success and created shareholder value. This segment is boasting a full order book and stable profits. In addition, technology divisions such as Uhde are driving forward the hydrogen infrastructure with ammonia splitting projects. For investors, the strategic development of these more profitable segments remains just as important as the outcome of the steel restructuring. The future of the group will be decided between these two poles. The share is currently trading at EUR 8.934.

NIO – The path out of the red is becoming clearer

The figures from Chinese electric vehicle manufacturer NIO show significant progress in the third quarter. The operating loss was reduced by a good 28% compared to the previous quarter. The decisive factor here was a substantial improvement in the vehicle margin, which rose to 14.7%. The Company was the only one in the comparable start-up group to achieve this. This development is driven by rapidly growing delivery figures and noticeable efficiency gains in production, as well as falling operating costs.

Growth is increasingly being driven by the younger brands, Onvo and Firefly. In the third quarter, 58% of deliveries no longer came from the premium brand NIO. This diversification into more price-sensitive segments is driving volume. At the same time, the parent company is scoring points with the new ES8, a high-priced SUV that is already developing impressive sales momentum. This healthy mix of volume and strong margins forms a solid basis for the future.

Management has set a clear goal for the coming year: profitability on a non-GAAP basis. This would be a fundamental turning point. The course for this has been set, driven by an attractive model range and further optimized cost structures. Whether this ambitious goal will be achieved now depends on market acceptance of the new models and the ability to defend the margin advantages achieved in a highly competitive market. The share price is currently trading at EUR 4.28.

The analysis shows a value chain under pressure to transform. Pasinex Resources is focusing on extremely high-grade zinc deposits to achieve inherent profitability in a volatile commodities market. thyssenkrupp is burdened by heavy losses due to the massive restructuring of its steel division, while other areas of the group provide relative stability. NIO, by contrast, is demonstrating tangible progress toward profitability, driven by improved vehicle margins and a diversified model range.