Top news: BYD, Bayer and Globex Mining

Globex Mining: With strong newsflow

After a significant price increase in December 2023, the Globex Mining share has been consolidating for several weeks. This may offer investors an exciting entry opportunity.

The Canadian mining incubator has acquired numerous exploration projects or abandoned mines in recent years. The portfolio now comprises 240 projects ranging from precious metals such as gold and silver to rare earths and lithium, the raw material for electromobility. Globex does not carry out the costly exploration of the projects itself but makes the land available to other companies. In return, Globex receives cash, share options or subsequent royalty payments - the advantage is risk reduction and steady cash flow.

The latest updates on numerous projects are positive and demonstrate Globex's broad diversification. Cartier Resources, for example, has announced that it has started a 25,000m drill program at Large Chimo Gold Mine and expects a gross metal payout of 3%. Brunswick Exploration has commenced a winter drill program on Globex's Lac Escale claims. The drilling will test a lithium-bearing vein swarm over a strike length of 2.8 km. There, Brunswicks had already outlined lithium-bearing pegmatite veins of considerable width and high grade.

Manganese X Energy Corp. has signed a letter of intent with leading US battery technology company C4V. The next step could be an offtake agreement for the high-purity Battery Hill manganese project. C4V is currently testing a sample. Manganese X has filed a patent application for a groundbreaking manganese purification technology. The process is designed to process manganese carbonate into high-purity manganese sulphate monohydrate. Typical applications for manganese sulphate include the production of cathode material for lithium-ion batteries and fine chemicals. IAMGOLD mines the Fayolle open pit on the Globex license property and transports the ore to its mill in Westwood. Globex receives royalties from its 2% interest in Net Smelter. In December, this amounted to CAD 58,814.68.

Those interested in learning more should register for today's virtual investor conference - IIF. Register here. Globex will present live at 2:30 pm CET.

Bayer: Dividend at a minimum and price target reduced

The Bayer Board of Management is likely engaged in numerous talks with investors at the moment. However, the topics are likely to be much more negative than at Globex Mining. More bad news came from Leverkusen this week. Over the next three years, the Company will only pay the legally required minimum to shareholders. This means that a dividend of EUR 0.11 will be proposed at the Annual General Meeting. Bayer CEO Bill Anderson explains the move as follows: "Reducing our debt and increasing our flexibility are among our top priorities." It is no secret that Bayer needs money. The fines from legal disputes relating to glyphosate & Co. run into the billions and are never-ending. In addition, the Company urgently needs to invest in the pharmaceutical pipeline. Analysts are already speculating about the sale of its flagship product Aspirin and other over-the-counter medicines.

After an initial fall in the share price, Bayer shares practically did not react to the news. Analysts at DZ Bank welcomed the dividend cut. After all, the debt reduction was necessary. Nevertheless, the target price was reduced from EUR 56 to EUR 47. The recommendation remains "Buy".

BYD: Is the share buyback coming?

BYD also wants to buy, specifically, its own shares. This was confirmed again over the weekend. The number of shares to be repurchased was not disclosed. BYD first raised the possibility of share buybacks in December 2023. At that time, a volume of USD 28.1 million was mentioned. The aim was to strengthen investor confidence and stabilize the Company's value. Although BYD is operating at full throttle, is in a neck-and-neck race with Tesla for the electromobility crown and is expanding worldwide, the share price is just over EUR 20 and thus at the level of the end of 2020. The Chinese company presents a new model or expands into a new market almost every week. Two new models are to be launched in Germany. For the first time, this will also include a hybrid model.

For those who want to benefit from the commodities boom with reduced risk, the Globex Mining share is interesting. The Company is debt-free and its extensive portfolio guarantees a steady news flow. Unfortunately, Bayer's news flow is not positive. Will a split be the only option in the end? Updates on this are expected on March 5, 2024. BYD is undervalued, no question. However, the China risk and the ongoing price war for electric vehicles continue to deter investors.