thyssenkrupp with green steel, Group Eleven in the commodities boom, NIO setting standards in e-mobility – 3 strategies for investors

thyssenkrupp - Between Progress and Stagnation

thyssenkrupp is pushing ahead with its realignment, but the biggest hurdle remains a tough nut to crack. Talks with the Indian steel group Jindal regarding an investment in the struggling steel division are going nowhere. Employee representatives report unanswered questions for months, signaling challenges in negotiations. CEO López, on the other hand, is keeping the public at bay and emphasizes that the division will be made future-proof even without Jindal if necessary. Whether this statement is a tactical negotiating ploy or a serious Plan B remains to be seen. The US investment firm Flacks Group has already signaled its interest as an alternative.

The first quarter presented a surprising picture. Despite declining demand and a drop in revenue to EUR 7.2 billion, adjusted operating profit rose by 10% to EUR 211 million. The company's in-house efficiency program, APEX, is paying off, particularly in the automotive supply and materials businesses. However, the bottom line shows a net loss of EUR 334 million, caused by provisions for the steel restructuring. Free cash flow started the year weakly, as expected, at minus EUR 1.5 billion, but the annual forecast remains unchanged.

Two industrial developments deserve attention. Starting in 2026, thyssenkrupp Steel will supply the BMW Group with CO₂-reduced bluemint® steel for the outer skin and battery housing of the iX3. This is genuine proof of the production readiness of green products. At the same time, the bodywork subsidiary is advancing its digitalization efforts and has joined the AI innovation platform IPAI. The goal is intelligent, self-learning manufacturing solutions with collaborative robotics. These projects demonstrate that management is actively shaping the technological future viability of individual components, regardless of ownership issues. The stock is currently trading at EUR 8.224.

Group Eleven Resources - How a Zinc Project Becomes a Polymetallic System Case

For a long time, the Irish exploration company Group Eleven Resources was regarded as a zinc specialist with a solid but straightforward story. However, the latest drilling data from the Ballywire project tells a different story. What began with a focus on base metals is increasingly evolving into a system where silver, copper, and strategic trace metals set the tone. The figures are substantial, with over 52 m containing more than 10% zinc plus lead, 330 g/t silver, and 0.4% copper. Such thicknesses and grades are not seen every day. But the real highlight lies deeper.

Below the zinc-lead zone, a steeply dipping copper-silver system is emerging. Three drill holes spaced approximately 350 m apart have already proven the continuity. This points to a spatial extent that is crucial for any subsequent economic evaluation. Geology plays a role here as well. CEO Bart Jaworski describes the deposit as a flat, pancake-like body along the base of a limestone unit. This configuration could facilitate future mining compared to more complex deposits. Initial metallurgical tests are scheduled for next year.

Another factor that is often overlooked in exploration companies is operational efficiency. This is where Ireland's location advantage comes into play. No helicopters or road construction are needed; teams commute daily from home to work. Proximity to one of Europe's largest laboratory service providers also saves on expensive air freight. As a result, drilling costs, including analysis, come to the equivalent of about CAD 150/m. This is a figure considered efficient even by international standards. With the recently completed financing of CAD 12 million, the program can now be expanded to approximately 75,000 m of drilling at Ballywire and Stonepark. This provides sufficient capital to systematically explore the most promising zones over the next two years. The stock is currently trading at CAD 0.98, above the private placement price, which is a positive sign.

NIO - Profitability as a Snapshot

Chinese electric vehicle manufacturer NIO generated an operating profit under US GAAP for the first time in the fourth quarter of 2025. At CNY 807 million, the operating result was clearly in positive territory. This success was driven by a strong delivery quarter with nearly 125,000 vehicles, as well as the consistent implementation of an internal cost management program. The operational turnaround marks a milestone, but for investors, the question of sustainability arises.

First two months of 2026 deliveries tempered the positive outlook. With 27,182 units in January and 20,797 in February, the sequential downward trend continued across all three brands: NIO, ONVO, and FIREFLY. While seasonal weakness due to the extended Lunar New Year holiday plays a role, the extent of the decline suggests a slowing sales momentum. To reach the lower target of 80,000 deliveries in Q1, a 54% increase in March would now be necessary - an ambitious undertaking without new model announcements.

Added to this is a challenging macroeconomic environment in China. The latest five-year plan no longer classifies electric vehicles as a strategic industry, while consumer incentives for vehicle trade-ins have been reduced. Rising material costs for memory chips, lithium, and copper are putting additional pressure on already slim margins. Although NIO is planning several large SUV models for the second and third quarters, the ambitious volume growth target of 40–50% for the full year appears increasingly fragile against this backdrop. The recent operational turnaround could prove to be a brief interlude. Currently, a share costs EUR 5.12.

The tectonic shift in trade routes is forcing companies to strategically realign. thyssenkrupp is securing its industrial future with green steel, but is struggling with financial legacy burdens amidst this transition. Group Eleven Resources is capitalizing on the commodity boom through a scalable, efficient exploration project in Ireland and has reported excellent drilling results. NIO has reached an operational milestone, though its sustainability is called into question by declining volumes and fragile market dynamics.