Close menu




October 25th, 2022 | 11:26 CEST

Varta, Barsele Minerals, Nel ASA - Hard-hitting announcements from analysts

  • Mining
  • Gold
  • Hydrogen
  • Investments
Photo credits: pixabay.com

The suspense is rising - the third quarter number season is open. It will be interesting to see how companies from various sectors have performed in the months from July to September despite imponderables such as rising raw material and energy costs and the global economic downturn. Due to the partly horrendous share price losses in recent months, interesting buying opportunities could arise at a cheaper level, which should promise high price gains in the long term.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: VARTA AG O.N. | DE000A0TGJ55 , BARSELE MINERALS | CA0688921083 , NEL ASA NK-_20 | NO0010081235

Table of contents:


    Varta - Clear miss

    A share price loss of more than 50% since the announcement of the crashing sales and profit warning on September 23 is still too little for analysts after the announcement of the preliminary figures for the third quarter. Thus, Hauck Aufhäuser Investment Banking changed the Varta share from "Hold" to "Sell". The price target was capped from previously EUR 39 to now EUR 24. The experts of Alster Research see the paper even a floor lower, more precisely at EUR 19. Also from Hamburg came a new investment recommendation of "Sell".

    The drastic reductions are more than understandable after the disastrous quarterly figures. According to preliminary figures, sales plummeted by just under 14% in the third quarter, amounting to only EUR 194 million after EUR 224.7 million in the same quarter of the previous year. The decline in EBITDA was even more severe. While a profit of EUR 70.2 million was posted in the third quarter of 2021, a loss of minus EUR 2.5 million was now recorded. The original estimates before the share price disaster were based on revenues of between EUR 210 and 230 million, with adjusted EBITDA in the range of EUR 40 to 50 million.

    According to management, the reasons for the crash were the high raw material and energy prices. In the micro battery segment, on the other hand, the decline was due to delays in customer projects. Whether these will occur in the final quarter remains to be seen. A renewed forecast for the full year is still missing.

    Barsele Minerals - Insider tip from Sweden

    The valuation of the Barsele project by the Royal Bank of Canada was already 6 years ago, yet it clearly shows the glaring undervaluation. At a gold price of less than USD 1,350 at that time, the experts calculated a project value of USD 375 million. If the fully diluted number of shares is added, this would mean a fair value of CAD 1.20 per share. Currently, the share price is quoted at CAD 0.37.

    Since then, exploration has continued at the Barsele project, where Barsele Minerals holds 45% and major Agnico Eagle holds 55%. As a result, operator Agnico Eagle has advanced exploration and drilled approximately 158,000 meters. In total, more than 400 drill holes have been completed.

    Then in 2019, Barsele released a resource estimate of 2.41 million ounces of gold prepared by an independent consultant. Since the resource estimate was prepared, an additional 93 drill holes have been created, and approximately 20,000 meters of drilling have been completed. The next target is a resource estimate in excess of 4 million ounces.

    The Barsele project is located in the Västerbottens Län mining region of northern Sweden, 600km north of Stockholm and covers 34,500 hectares in the Fennoscandian Shield. The planned takeover of Agnico Eagle's share by the Canadians failed last year. Still, work continues on a complete takeover on the part of the Belcarra Group, which provides the management of Barsele Minerals.

    The management of Barsele Minerals will present itself to interested investors at the International Precious Metals & Commodities Fair on November 4 and 5, 2022, in Munich.

    Nel ASA - Loss widened

    The Norwegian hydrogen specialist Nel ASA also delivered disappointing figures for the third quarter. EBITDA, for example, almost doubled to NOK -214 million compared with the same period last year. Surprisingly, revenues also declined at the growth stock. After NOK 229.3 million in the third quarter, sales currently amount to NOK 183 million. The Scandinavians were thus well below analysts' consensus estimates of NOK 296 million. On the other hand, order intake increased by 456% to NOK 775 million, which somewhat curbed the gloomy mood.

    For US bank JPMorgan, the third-quarter figures were too weak, prompting analyst Patrick Jones to downgrade the stock slightly from NOK 10.10 to NOK 10. The investment rating was reiterated at "Underweight." US investment bank Goldman Sachs, on the other hand, counters with a reiteration of its Buy rating and a price target of NOK 17. According to analyst Zoe Clarke, the hydrogen company's sales fell short of market expectations. However, the good momentum in order intake continues.


    The third quarter reporting season is underway. With Varta and Nel, two previous stock market stars already disappointing, analysts have reacted mainly with downgrades. At Barsele Minerals, on the other hand, the gap between project value and share price is widening.


    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

    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



    Related comments:

    Commented by André Will-Laudien on December 7th, 2023 | 08:50 CET

    Snow chaos and climate madness, who is playing in the Premier League of the energy transition? Nel ASA, Power Nickel and Plug Power under the microscope

    • Mining
    • Nickel
    • BatteryMetals
    • renewableenergies
    • Energy

    Snow chaos and new record highs. While the DAX 40 demonstrates itself as the world's best blue-chip index, the German economy is currently navigating downward. It is not the earnings outlook that is presently driving share prices but the hope of lower interest rates. Meanwhile, the endless climate debates in Dubai continue. Among realists, however, there must be fears that the local oil lobby will not let a German know-it-all put a stop to the lavish margins with fossil fuels. There will, at least, be a friendly Arab nod to the 2050 climate goals and exclusive indulgence for the high-ranking German delegation. Whether this justifies federal expenditure of more than EUR 50 million is something we will leave uncommented. More important is a look at the top titles of the upcoming energy transition - where is the next 100 percenter lurking?

    Read

    Commented by Fabian Lorenz on December 7th, 2023 | 08:40 CET

    TUI strong! BYD reacts to share price slide! First Hydrogen share price about to jump?

    • Hydrogen
    • fuelcell
    • Tourism
    • Electromobility

    TUI shares reacted to strong figures yesterday with a jump of over 10%. The tourism group also announced its intention to leave London and relocate its headquarters to Germany. However, the initial reactions from analysts were somewhat cautious. Given BYD's disappointing performance throughout the year, price reductions and negative analyst opinions have led to another sell-off. Now, the Company has decided to buy back its own shares, but will that be enough for an upward trend? First Hydrogen has several pieces of promising news. The Canadians have introduced their hydrogen fuel cell commercial vehicles in the UK, and interest is high. Furthermore, they plan to enter battery production with a partner. Will the three shares take off further, driven by the positive news?

    Read

    Commented by Armin Schulz on December 6th, 2023 | 08:00 CET

    Siemens Energy, Defense Metals, Rheinmetall - Rare earths as a risk factor

    • Mining
    • RareEarths
    • renewableenergies
    • armaments

    The scarcity of and access to rare earths has become a major global concern. China plays a decisive role in the production of rare earths, as the country mines 60% of all rare earths worldwide and processes 85% of them. After the US banned the export of AI chips, China considered banning the export of rare earth metals. These trade blockades from both sides are causing tensions in international trade relations and concerns about supply bottlenecks. Rare earths play an important role in wind power, armaments, medicine, electromobility and the electronics industry. As an investor, one should be aware of these risks.

    Read