Why RENK Group needs Antimony Resources just as much as the largest US defense contractor, RTX

RENK Group – Benefiting from global security needs

German drive specialist RENK is experiencing impressive economic growth. Driven by rising defense budgets, especially in NATO countries, the Company is posting one record after another. In the first half of the year, order intake jumped 47% to EUR 921 million, creating a record order backlog of EUR 5.9 billion. Revenue and operating profit also rose sharply. The main drivers behind these results are high-performance transmissions for tanks and naval vessels, which have to withstand extreme loads. Special alloys play a role here. However, antimony is only a minor material for RENK in the overall context of defense production.

The Company is currently proving to be very agile, and not just on the operational side. A new, modular production concept was recently inaugurated at its headquarters in Augsburg. This "modular system" allows for more flexible and efficient assembly of gearboxes and is expected to increase capacity significantly. At the same time, RENK presented the HSWL 076, a newly developed gearbox for light tracked vehicles that is already prepared for future hybrid and digital functions, at the DSEI trade fair in London. These initiatives underscore the focus on meeting strong demand in terms of production technology.

As expected, analysts are looking to RENK. The assessments are predominantly positive, even if there are differing opinions. Institutions such as Jefferies and Berenberg see further potential and recommend buying, while others, such as Goldman Sachs, advise caution. The average price target is currently around EUR 78. The long-term earnings forecasts are robust and reflect the expectation that RENK will benefit sustainably from the structural defense boom. Many observers see short-term price fluctuations as buying opportunities rather than warning signs. The share price is currently EUR 74.43.

Antimony Resources – Drilling successes and a strategic window

Antimony Resources is entering Phase Two of drilling at its Bald Hill project in New Brunswick. At least 6,000 m are planned after the first campaign yielded impressive results with 3,150 m drilled across 16 holes. High antimony grades were encountered in 75% of the drill holes, including 14.91% antimony over 3.0 m. The main zone was thus extended by over 100 m to the south and to a depth of 400 m. The current program aims to build on these successes to the north, south, and at depth, while infill drilling will provide the data density required for an initial resource estimate in early 2026. The consistently high grades indicate a robust and economically promising mineralization system.

The timing could hardly be better. China's export restrictions on strategic metals have put pressure on the global antimony market. The country dominates the supply chain, putting pressure on Western industries that rely on antimony for flame retardants, defense products, and electronics. These geopolitical developments open a strategic window for projects in stable jurisdictions such as Canada. Antimony Resources is positioning itself as a potential new supplier at just the right time. Dependence on Chinese exports thus becomes a direct driver of project value.

For investors, the picture is becoming increasingly clear. Ongoing drilling successes continue to highlight the geological potential of Bald Hill. At the same time, Chinese restrictions are driving up long-term price expectations for antimony. The combination of an expanding deposit model and a tightening global market creates a rare constellation. Next year's planned resource estimate could be the next significant value driver. All indications suggest that Antimony Resources is evolving from a pure exploration company to a strategic supplier for Western industries. This is an extremely promising prospect for early investors. Since May, the share price has risen from CAD 0.08 to CAD 0.30. Following a period of consolidation, the share price is now rising again and is currently trading at CAD 0.28.

RTX – In the crosshairs of global defense demand

At the end of September, the US Department of Defense made headlines with its demand for a drastic acceleration of missile production. RTX plays a key role in this dynamic, as its systems rely on critical raw materials such as antimony. This metal is essential for hardening lead in ammunition and manufacturing flame-retardant materials for military vehicles. With China, the world's largest producer, restricting its exports, a secure supply chain for RTX is becoming a strategic necessity in order to meet the Pentagon's ambitious production targets.

The order situation speaks for itself. RTX recently secured a prestigious deal to supply modern SPY-6 radar technology for eight German frigates. Even more significant is a US order worth around USD 5 billion for the Coyote drone defense system. These major orders underscore the global demand for RTX technologies and show how the Company is benefiting from increased defense budgets in Europe and the US. The orders provide long-term planning security.

Together with partners such as Anduril, RTX is advancing manufacturing technology to ramp up production. The Company's recent record order backlog of USD 236 billion, divided between civil and military sectors, makes it robust. Even if tariffs temporarily weigh on margins, RTX's broad positioning along the entire value chain, from engines to missile defense, ideally positions it to benefit from ongoing global security investments, regardless of economic fluctuations. Third-quarter figures are expected on October 21. The stock fell with the US market in recent days to currently USD 157.70.

The antimony shortage reveals a critical weakness in the Western defense industry. Although the RENK Group is benefiting tremendously from the economic boom, it remains vulnerable to supply bottlenecks for special alloys for its high-performance gearboxes. Antimony Resources is taking advantage of the geopolitical window and pushing ahead with its drilling program to establish itself as a new strategic supplier in a secure jurisdiction. The defense giant RTX, on the other hand, is in the crosshairs of the crisis, as its missile and radar systems are dependent on a secure supply of antimony to fulfill mega-orders. Dependence on China is forcing a radical rethink.