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December 30th, 2021 | 11:40 CET

Varta, Nel ASA, Almonty Industries: Buying opportunities for 2022?

  • Tungsten
Photo credits: pixabay.com

Even though 2021 felt like it was all about COVID-19 and vaccine manufacturers such as BioNTech, Valneva and Novavax, the energy and mobility revolution was one of the dominant themes. Evidence of this is the boom in e-cars in Germany. The Association of International Motor Vehicle Manufacturers (VDIK) estimates that one in four new cars in this country will be electric in 2021. There is a good chance that hydrogen, lithium & Co. will continue to electrify investors in the coming year. Here we present three companies benefiting from the megatrends but whose share prices have come back significantly from their highs: Hydrogen specialist Nel ASA, battery pioneer Varta and future tungsten giant Almonty.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: VARTA AG O.N. | DE000A0TGJ55 , NEL ASA NK-_20 | NO0010081235 , ALMONTY INDUSTRIES INC. | CA0203981034

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    Almonty: Tungsten will soon be a critical metal within the EU

    Things will get exciting at Almonty Industries in 2022. The Canadian-based Company specializes in mining, processing and shipping tungsten concentrate. Tungsten is indispensable for today's high-tech industry: from energy and lighting technology to aerospace, telecommunications and medical technology - it all needs the rare raw material. Yet tungsten is produced predominantly in China. Almonty Industries wants to change this. It currently produces at two mines in Portugal and Spain. There, Almonty expects increasing margins.

    Almonty CEO Lewis Black comments: "Tungsten is considered a challenging element. Our mine in Portugal employs miners whose fathers and grandfathers have worked there. The mine has been in operation for 126 years. If you shut down such projects for short-term profit, you cannot reactivate them easily because you simply do not have the skilled workers. So we accepted smaller margins in the past years and thought long-term. Now it looks as if tungsten could also be declared a critical metal within the EU, whose domestic sources will be protected - precisely because of the new uses around e-cars. We, therefore, see ourselves in an excellent position with our two projects in Portugal and Spain. However, the all-important project remains Sangdong."

    Almonty is currently building a new mine facility, Sangdong, in South Korea and is fully financed for this purpose. Once final permits are received, production is expected to begin in the fourth quarter of 2022. Almonty will account for around 30% of non-Chinese tungsten production when full capacity is reached. By then, the stock is also expected to break even. Company CEO Black is confident: "We will stay on the ball operationally and wait for the fundamentals to ultimately prevail. This much is clear: tungsten is a technology metal. Almonty Industries will be mining up to 30% of global supply outside China from the end of 2022 in a climate-neutral manner and in accordance with the highest ESG standards. I have no doubt that Almonty will be a success story for all shareholders." Interested parties can find more details in a study on researchanalyst.com researchanalyst.com/en/report/almonty-industries-inc-and-the-wires-are-glowing.

    Varta: When will the liberation blow come?

    Varta's stock has been fun at best for traders in 2021. Amid high volatility, it ended the year where it started - at around EUR 115. As a battery specialist, the Company is active in desirable markets. Varta is the world market leader in micro-batteries for mobile devices such as Apple AirPods. The Company has been successfully fending off attacks from Asian competitors for years. Varta earns brilliantly in this area, but even the Company cannot escape the global supply chain problems. Price drivers in the coming year can only come from the new area of electromobility.

    Varta announced the production of batteries for electric cars in the current year. Cooperation with a German premium manufacturer for the booster battery has also already been reported. But for the "real" battery, there is still a lack of partners. Only when there is news here can a sustained positive share price development be expected. But then it could also quickly head towards an all-time high of over EUR 170.

    Nel ASA: With momentum into the new year

    At the end of 2021, Nel ASA has already gathered momentum for a successful 2022. The Norwegian market leader in the hydrogen segment reported two orders just before Christmas. The subsidiary Nel Hydrogen Fueling has received a purchase order for several hydrogen fueling station modules in the USA. The modules are to be delivered in 2022 and 2023 and are valued at USD 6 million. "We are pleased to announce this new order for a US fuel supplier, which is not only a great honor but also a testament to the strength of our technology," said Eddy Nupoort, director of sales and business development in North America for Nel Hydrogen.

    The second order worth around EUR 3 million comes from a new European customer. This customer has ordered an alkaline electrolyzer system from Nel. The system will be delivered in 2022, and hydrogen production will start in 2023. The Nel share is currently trading at EUR 1.60. However, in order to attack the old highs above EUR 3, more and larger orders are needed. Even after the drop in the share price over the course of the year, Nel's market capitalization still stands at an impressive EUR 2.2 billion.


    The energy and mobility transition and the raw materials required will remain in the focus of stock market players in 2022. All three shares presented here are benefiting from these megatrends. Despite the decline, Nel ASA still has the most imagination in its share price. If Varta introduces new partners from the automotive sector, the share should have room to run. The closer Almonty gets to the start of production in Sangdong, the more exciting the share should become.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



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