Close menu




October 9th, 2023 | 06:50 CEST

ThyssenKrupp, Almonty Industries, Rheinmetall - Good buying opportunities

  • Mining
  • Tungsten
  • Batteries
  • armaments
Photo credits: pixabay.com

Today, we are looking at three companies that offer good buying opportunities. For ThyssenKrupp, the recent positive news was that the unions are not demanding a 4-day workweek for the time being. Almonty Industries is benefiting from the fact that tungsten is being used in more and more new technologies. This includes the rising demand for tungsten in electric vehicle batteries. Rheinmetall could be an interesting buy candidate after the setback. Read the article to find out where the strengths of the three candidates lie.

time to read: 5 minutes | Author: Armin Schulz
ISIN: THYSSENKRUPP AG O.N. | DE0007500001 , ALMONTY INDUSTRIES INC. | CA0203981034 , RHEINMETALL AG | DE0007030009

Table of contents:


    ThyssenKrupp - Portfolio reorganization

    Since June 1, Miguel Ángel López Borrego has been ThyssenKrupp's new CEO, and since then, a change of direction has been taking place. He wants to make the Group more profitable with the APEX Performance Program and also optimize the portfolio. Rumors of a spin-off of the steel division have been circulating for years, but there are increasing signs that it could be realized. In an interview, Chief Executive Officer of the Krupp Foundation, Ursula Gather, said that a decision regarding the steel business is expected soon. Handelsblatt reported on talks with Czech billionaire Daniel Kretinsky. The sale of 50% of the steel business is under consideration.

    Kretinsky's EP Holding could give the Essen-based company access to low-cost electricity, as the holding company owns energy producers in eastern Germany. In addition to the steel business, the marine business is also a focus. This unit could be floated on the stock exchange, as Nucera was previously. But a sale is also under discussion. The German government is interested in acquiring a stake, as confirmed by Defense Minister Boris Pistorius. These deals could help the Group solve its financial problems. In addition, rising interest rates mean that provisions for pension obligations can be reversed.

    The current market capitalization is EUR 4.15 billion, but the figure is significantly higher if the values of ThyssenKrupp's individual segments are added together. This is also the view of analysts at Baader Bank, who have issued a buy recommendation with a target price of EUR 16 per share. From a fundamental perspective, the stock is a buy at a current price of EUR 6.67. Due to the Company's energy consumption, high electricity costs, and significant CO2 emissions, the stock is not the top choice for shareholders. From a purely numerical point of view, ThyssenKrupp is undervalued, and ultimately the fundamentals usually prevail.

    Almonty Industries - Presented at the IIF

    Tungsten is not only essential for the automotive industry in electric vehicles but also for robotics, which is experiencing a resurgence due to sensors and artificial intelligence. Making robotic parts requires tungsten carbide cutting tools, and tungsten is also essential in robotic arms and other heavy-duty machinery because of its unique properties, such as a high melting point, density and conductivity. China dominates the supply chain for this critical raw material, but Almonty Industries could help reduce that dependence with its Sangdong Mine in South Korea. The mine is said to have a lifespan of over 90 years and, at full capacity, could supply up to 15% of the global tungsten demand.

    The property benefits from a high tungsten grade of 0.44 to 0.49%, 2.5 times higher than the average of other projects. In addition, it has an offtake agreement with the Plansee Group, which will take 50% of the production at a minimum of USD 235/t, or in line with the market price, which is currently around USD 315. The project also has room for expansion as it contains an additional molybdenum deposit, and the construction of a nano tungsten oxide plant would create additional sales markets. Tungsten oxide is used both in the production of tungsten hexafluoride, which is needed for the production of semiconductors and as a material for the production of anodes and cathodes for the battery industry. It is worth noting that South Korea is one of the largest producers of electric vehicle batteries.

    Almonty is a specialist in tungsten mining and already has a mine in production, the Panasqueira mine in Portugal. The Los Santos mine is also expected to come back on stream this year. Interested investors can find out more about the current status of mine development at the upcoming International Investment Forum on October 10 at 4 pm. CEO Lewis Black will present the Company, report on progress and answer questions live from shareholders. On October 7, the Company announced that it will raise CAD 500,000, USD 733,333 and AUD 550,000 in fresh capital through the issuance of approximately 3.3 million new shares. What is noteworthy about this placement is that the CEO will invest CAD 500,000, and Daniel D'Amato, a director of the Company, will invest USD 366,666.63. This demonstrates confidence in the future of Almonty Industries. On Friday, the stock exited trading at CAD 0.465.

    Almonty Industries will present at the 8th International Investment Forum

    Rheinmetall - Business is booming

    From October 9 to 11, Rheinmetall will be presenting its products at the AUSA trade fair in Washington, DC. Prototypes will be displayed there, and it is safe to assume that new orders will be placed at the end of the day, even if it still takes time to get from prototype to delivery. The best example is the Panther tank, which was presented in 2022 and is now to be used by the Hungarian army. Handelsblatt reported that the tanks will also be built in Hungary. Since many countries have supported Ukraine with tanks, there is a need for replenishment in these countries.

    Operationally, things are going very well. Since September 26, the Group has announced 3 new orders. The first was an order in the automotive lightweight sector, valued in the three-digit million range. The German armed forces ordered 13 LUNA NG airborne reconnaissance systems for over EUR 200 million. Reconnaissance systems in the double-digit million range were also ordered from Ukraine. Recently, 155mm artillery ammunition was ordered from a framework agreement intended for use by Ukrainian and German armed forces. Here, a low three-digit million sum is flowing into the Company's coffers.

    Demand for armaments will not abate any time soon, as the new conflict surrounding Israel shows. There are more and more trouble spots, and defense spending is being ramped up accordingly. The Group should achieve its annual targets, and ideally, even a new order record should be possible. Now, after the share has fallen almost 20% from its peak since the beginning of April, there is a buying opportunity. Berenberg also sees the price target at EUR 300 and recommends buying. The share is currently trading at EUR 233.80.


    Each of the three companies has good future prospects. ThyssenKrupp is fundamentally viewed too cheap and has some upside potential. Almonty Industries produces tungsten, a raw material that is urgently needed for high-tech developments, as well as for steel alloys, the defense industry and the battery industry. The share will be revalued as soon as the Sangdong mine goes into operation. Rheinmetall receives order after order and benefits from the geopolitical tensions and its expertise in aluminum**, which is important for the automotive industry.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Mario Hose on June 16th, 2025 | 07:25 CEST

    Gold rush 2025: Why Desert Gold Ventures Inc. is now on the brink of a historic revaluation!

    • Mining
    • Gold
    • Investments

    Imagine this: A company is sitting on a gold treasure trove of over 1.1 million ounces – and is valued by the market as if this treasure were worthless. While the gold price has soared to a record high of over USD 3,442 per troy ounce, shares in Desert Gold Ventures Inc. (WKN: A14X09 | ISIN: CA25039N4084 | TSXV: DAU) are currently still trading at rock-bottom prices. But that could change radically in the near future. The escalation of the conflict between Iran and Israel is driving the price of the precious metal to rise, which in turn is boosting the appeal of gold companies. The countdown to a revaluation is on – and savvy investors should take a close look now!

    Read

    Commented by Fabian Lorenz on June 16th, 2025 | 07:20 CEST

    Alarm bells ringing for GOLD and DEFENSE: RENK, Barrick Mining, and comeback story AJN Resources

    • Mining
    • Gold
    • Commodities
    • Defense

    Is the gold price facing a short squeeze? The ECB is certainly painting a horror scenario. This could have serious consequences for banks and the entire financial system. For gold producers and exploration companies, this means further momentum. While Barrick Mining is a core investment, it is also suffering from home-grown problems. AJN Resources is working on the comeback story of the year in the commodities sector. The valuation is still favorable, and exciting news is on the horizon. In the defense sector, consolidation could already be over. The escalating conflict between Israel and Iran will likely drive the shares of RENK, Rheinmetall, and others. Analysts see potential for RENK to reach a new all-time high, and the Company recently reported an order from outside Europe.

    Read

    Commented by André Will-Laudien on June 16th, 2025 | 07:15 CEST

    Gaza, Iran, Ukraine – Conflicts are driving up metal prices! Rheinmetall, European Lithium, Hensoldt, and RENK

    • Mining
    • Lithium
    • Defense

    The problem is getting bigger! Strategic metals are currently having a massive impact on the geopolitical balance of power, as they play a decisive role in determining the economic and military capabilities of countries. Conflicts such as those in Gaza, Ukraine, and, more recently, Iran are exacerbating shortages because long-standing trade relationships can be terminated overnight. The concentration of metal production in a few countries makes supply chains vulnerable to political influence. Export restrictions, embargoes or targeted shortages imposed by China or Russia can lead to bottlenecks in consumer countries and severely affect the economy. We describe the current situation and offer solutions for dynamic investors.

    Read