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November 20th, 2023 | 07:00 CET

There is clearly room for improvement here - Volkswagen, Globex Mining, Siemens Energy

  • Mining
  • Gold
  • Vanadium
  • BatteryMetals
  • renewableenergies
  • Electromobility
Photo credits: pixabay.com

After the corrections of recent weeks, the bulls have regained the sceptre. Despite the uncertain geopolitical situation and supported by an easing interest rate front, technology stocks were also able to recover significantly from their recent lows for the year. In addition, Germany's leading index, the DAX, knocked on the psychologically important 16,000-point mark. Overcoming this level will likely result in an attack on the all-time high at 16,532 points still within this stock market year.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: VOLKSWAGEN AG VZO O.N. | DE0007664039 , GLOBEX MINING ENTPRS INC. | CA3799005093 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0

Table of contents:


    Volkswagen AG - China puts the brakes on

    The bottom line for the Wolfsburg-based car manufacturer's sales figures for the month of August was a plus, thanks to good sales in Europe and North America. In total, 765,000 cars left the plants, an increase of 10.7% compared to the same period last year. According to a Volkswagen statement, the sales market in China also developed positively. A company spokesperson said, "the ID.3, in particular, contributed to the success."

    Nevertheless, after 10 months, the sales figures in China are down by more than 2% to around 2.6 million units. The sales figures to date point to the worst year in China since 2012. In particular, domestic competition from BYD & Co. is giving the DAX-listed company a hard time.

    But Volkswagen is also feeling the headwind from its peer group in Europe. French rival Renault, for example, is attacking head-on in the small electric car sector. As early as spring 2024, the French aim to challenge the German car giant with the market launch of the ë-C3 small car, which is expected to be available for around EUR 23,300. In 2025, a cult model is also to be launched on the market, which will be available for less than EUR 20,000. This is the Renault Twingo. Volkswagen is currently working on the Polo successor, the VW ID.2, to serve the lower segment. However, a launch date is still a long way off.

    In chart terms, Volkswagen AG shares were able to break further away from their annual lows of EUR 97.83. At EUR 108.84, the stock is on the verge of breaking the downtrend that has been in place since May 2021. A breakout would result in the 200-day line, currently at EUR 118.82, as the next short-term target.

    Globex Mining - Ready for the next supercycle

    Filtering out the right companies in the commodities market is not only a challenging task for private investors. One alternative poised to benefit from the next supercycle despite the corrections in the commodities sector is the incubator Globex Mining. The Canadian company, led by industry veteran Jack Stoch, attaches great importance to broad diversification and boasts a portfolio of no less than 232 holdings. This portfolio contains 118 precious metal projects containing gold, silver, platinum and palladium deposits, 62 properties with base metals and a further 52 deposits filled with industrial metals such as lithium or cobalt, which are fundamental to achieving climate targets.

    Globex Mining generates permanent revenue by handing over around 90 projects to licensees, whereby continuous royalties flow in the form of cash payments, share transfers or royalty payments. In addition, the licensee bears the exploration risk.

    The large number of projects also ensures a steady flow of news. The latest news comes from Cerrado Gold, which secured the Mont Sorcier property. They are in the financing phase for a vanadium-iron project with a net present value of USD 1.6 billion on the indicated resource alone. Historically, the indicated resources represent only a quarter of the total resource. According to the study, the project is expected to generate USD 235 million in free cash flow over 21 years. In this case, Globex Mining would receive a gross metal royalty of 1%, equivalent to USD 2.35 million, annually.

    Globex Mining has a market capitalization of CAD 51.74 million. In addition to the 232 investments, the Company holds around CAD 25 million in cash or short-term realizable investments. The intrinsic value of the assets is likely to significantly exceed the current market valuation.

    Siemens Energy - Olaf gives the thumbs up

    There were already indications that the German government would provide financial assistance to the ailing energy technology company. Details of the aid package have now been published. The German government is granting the DAX-listed company a guarantee of EUR 7.5 billion. In total, the Munich-based company, supported by banks and other shareholders, is to be secured with EUR 15 billion. The parent company, Siemens, still holding a 25.1% stake, pledged EUR 1 billion. The guarantees are intended to ensure that Siemens Energy can continue to finance its major projects in the long term. The fact that the guarantees have not come to nothing is shown by the increase in the order backlog by around 34% to EUR 50 billion compared to the same period last year.

    The parent company, Siemens, was able to shine with a record result. Siemens announced profit after tax almost doubled to EUR 8.5 billion. The dividend for shareholders is to be increased from EUR 4.25 to EUR 4.70 per share. The CEO of the Munich-based company, Roland Busch, explained that earnings and profitability in the industrial business had reached their highest levels ever.

    Following the announcement, Siemens Energy shares continued to rise after the disastrous previous weeks. After the lows at the end of October, the share price has doubled to EUR 11.68. The next resistance area is at EUR 12.51.


    Volkswagen had to cope with a decline in sales in China due to rising domestic competition. Siemens Energy is receiving safeguards amounting to EUR 15 billion. Globex Mining is ideally positioned to participate in the anticipated upswing on the commodity markets.


    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



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