Watch out! Take advantage of the price correction in Almonty Industries, Rheinmetall, and RENK!

Almonty Industries – A globally significant player in the tungsten market

Tungsten is a strategic metal that is indispensable for the defense industry, aviation, and high-tech due to its hardness and heat resistance. With China, Russia, and North Korea dominating around 80% of the market and prices rising for some time now, Almonty's Sangdong mine, which will go into production shortly, carries geopolitical weight. At full production capacity, Sangdong is expected to cover over 80% of Western non-Chinese production. In addition, there are long-term purchase agreements with attractive price floors.

The Canadians are already demonstrating their expertise in tungsten production. In Portugal, the Panasqueira mine has been producing this critical metal for many years. Preparations are currently underway for the new "Level 4" production level, which will increase production volume, including through higher-grade material and mine life.

With the recent acquisition of the Gentung Browns Lake tungsten project in the United States, the Company is further expanding its position as the world's leading non-Chinese supplier of tungsten concentrate. The project is located in a historic tungsten region in the US state of Montana. It could go into production as early as the second half of 2026, with an expected output of around 140,000 MTU of tungsten oxide per year. The volume of the acquisition amounted to approximately USD 9.75 million.
Almonty has already secured extensive measures for further acquisitions, so that financial resources can be quickly accessed if necessary. At a share price of just under CAD 7, the Company is valued at CAD 1.5 billion. Analysts at Oppenheim Research have set a price target of CAD 12, while experts at Sphene Capital have set a target of CAD 13.50.
Investors can look forward to exciting company prospects and an update from the CEO at the next International Investment Forum (www.ii-forum.com) on December 3 at 4:00 p.m. CET.

Rheinmetall – Among the TOP 10 in Europe

After a brief period of stabilization, defense stocks are continuing their correction. Against the backdrop of ongoing efforts to end the war between Russia and Ukraine, investors are taking profits after a price increase of over 100% since the beginning of the year.

According to the Stockholm International Peace Research Institute SIPRI, Germany ranks sixth in Europe in terms of revenue. In 2024, the group generated EUR 9.8 billion in revenue, and this year it is expected to reach up to EUR 12.7 billion with a slightly higher operating margin of 15.5%. Rheinmetall is aiming for revenue of EUR 50 billion in 2030. The operating margin is then expected to exceed 20%.

The Company is currently valued at EUR 67 billion with share prices around EUR 1,400. The average price target of analysts is EUR 2,220, an upside of more than 50%! Experts at Citigroup consider the current price level of defense stocks to be an entry opportunity.

RENK – Sales to triple by 2030?

At the beginning of October, RENK shares were still trading at around EUR 90, but currently, only half that price is being quoted. The average analyst price target of EUR 67 indicates upside potential of a good 40%.
The stock market ignored the most recent order intake from Eastern Europe in the high double-digit million range, which includes spare parts and service packages for battle tanks, armored personnel carriers, and howitzers, among other things. In the current fiscal year, the group aims to achieve revenue of EUR 1.3 billion and adjusted operating profit of EUR 210 to 235 million. The medium-term targets published at the Capital Markets Day promise impressive growth. For 2030, the group forecasts revenue in the range of EUR 2.8 billion to EUR 3.2 billion. In addition, acquisitions could add up to EUR 1 billion in revenue.

RENK has been the best performer among German defense stocks since the beginning of the year. This is due in part to the Company's relatively favorable valuation compared to its competitors, but also to its excellent market position in safety-critical propulsion systems for armored vehicles and ships. As a technologically virtually irreplaceable specialist supplier with quasi-monopolistic market positions, the Company also benefits from high market entry barriers.

Price setbacks for defense stocks represent attractive entry levels. RENK, as a specialist supplier, and Rheinmetall, as one of the largest European players, are among the favorites here. However, Almonty Industries appears even more attractive. The Canadians are positioning themselves as the world's largest non-Chinese producer of the critical raw material tungsten, which will soon be produced in South Korea and, from 2026, also in the US.