Fossil fuels have been in high demand again in recent months. On the one hand, global conflicts and the operation of weapons technology are not devouring solar power, and on the other, the German government has cut short its own e-mobility strategy by ending the environmental bonus. The desire for momentum in this area now gives way to harsh reality. Sales of e-cars are falling so sharply that German premium manufacturers are once again considering new combustion models. All of these trends play into the hands of the Canadian commodities company Saturn Oil & Gas. For several years now, the Company has recognised the increased demand for oil and gas and is consistently expanding its production capacities. Figures have now been released for 2023 that represent a quantum leap for the still-young company.
Pharmaceutical giants have billions to spare. Their preferred acquisition targets focus on antibody-drug conjugates and the fight against cancer - an area in which Defence Therapeutics has been active for years. Previously unpublished studies now reveal entirely new potential for AccuTOX®, a chemotherapy drug on the verge of being approved by the FDA. As the share is extremely interesting from a technical perspective, investors should pay close attention.
Amid ongoing geopolitical tensions, gold is increasingly emerging as a safe-haven currency. While global gold mine production has risen by 26% since 2010, it has increased by almost 60% in Africa and more than doubled in at least 10 African countries. Africa has traditionally been a major producer of raw materials, deriving its economic growth from the establishment of mining operations. In Ghana, for example, currently Africa's largest gold producer, gold accounts for around a quarter of the value of total annual exports. If gold mining is carried out responsibly, it can act as a catalyst for significant positive change. Canadian explorer Desert Gold has been active in Mali since 2015 and is now entering the most exciting phase in the Company's history.
In the international concert of the energy transition, it is up to resource-rich countries to continue supplying their abundant reserves to the market. Europe is naturally not very well endowed with significant oil or gas reserves, so the focus is more on renewable energy sources. However, anyone who needs fossil fuels is bound to turn to external suppliers for their energy requirements. Industrial sectors that traditionally cannot do without oil or gas due to established manufacturing processes are particularly affected. At the onset of the Ukraine crisis, the German government turned to the raw materials giant Canada and negotiated extensive supplies of LNG gas and strategic metals. The Canadian raw materials company Saturn Oil & Gas has recognized this demand and is consistently expanding its production capacities. The crucial factor in this context is the conviction that fossil energy will still be needed for many decades. Saturn Oil & Gas is, therefore, ideally positioned today.
The geopolitical climate is becoming increasingly frosty. The Ukraine crisis, which has already lasted almost two years, was joined by the Hamas terrorist attack against Israel in October 2023. What poses a huge challenge for international politics in terms of safeguarding mutual interests is no less dangerous for industry. Power blocs are forming, increasingly distancing themselves from the West and pursuing strict self-interests. In the Russia-China axis, in particular, it must be assumed that the climate towards the US and its allies will remain frosty and spill over into other areas. It is no coincidence that governments have placed important metals on the strategic procurement list. Tungsten is the metal for ultra-hard and heat-resistant surfaces and is part of a challenging scarcity debate, as 85% of the metal is mined in China.
From a business perspective, 2023 could not have gone better for the hydrogen specialist based in Vancouver and London. In addition to successfully completing the first series of tests of its hydrogen fuel cell-powered light commercial vehicles under real road conditions, in which ranges of over 630 km were achieved on a single tank of fuel, First Hydrogen continues to build coverage of the entire hydrogen value chain. Regardless of this, the Canadian company's share price also suffered in the course of the general market correction in the sector. Due to the high potential and positive future prospects, the current share price should offer a long-term entry opportunity.
Rare earth metals are becoming increasingly important in today's world. In addition to their use in renewable energies to achieve climate targets, demand from the defence industry has also increased since the outbreak of the Ukraine conflict, aiming to ensure the military security of the West. However, the challenge with the procurement of critical metals is the fact that China controls the entire value chain from mining to production. Suitable deposits outside the Middle Kingdom are rare. One of the beacons of hope is the Wicheeda project in British Columbia, Canada, owned by Defence Metals. However, its potential has yet to be fully realized on the stock market. If one compares the market capitalization of Defense Metals with projects of much lower substance and at a much earlier stage of development, the massive discrepancy in the Company's valuation should be apparent at first glance.
There is currently plenty of fuel for gold investors. On the one hand, there is the technical breakout attempt at the beginning of December with prices around USD 2,150 - a new all-time high. On the other hand, there is the uncertainty caused by numerous geopolitical conflicts, which appear to be intensifying. Inflation, which is manifesting itself despite falling inflation, and the constant expansion of government debt are also fueling turmoil, particularly in the US dollar-dominated region. Added to this are the efforts of many BRICS countries to expand their sphere of influence to countries rich in raw materials and to distance themselves from the US dollar in the long term. These intentions are being driven by the China-Russia axis, which seems to be becoming more and more entrenched since the invasion of Ukraine. Anyone wishing to consider this potpourri of framework conditions in their investment strategy should look to Africa. Vast reserves of raw materials lie dormant there, and traditionally, the connection to Western investors is good. This is because they create jobs and bring critical development services to the country. The Canadian explorer Desert Gold Ventures is focusing on the Senegal-Mali-Shear Zone (SMSZ). Not without reason, as the drilling completed in 2023 has already delivered industrially usable mineralization grades in gold.
Climate transformation depends on many factors. On the one hand, countries worldwide need to agree on a common approach, and on the other, they need guidelines and standards within which people and businesses can operate. A few years ago, a tradable price for "pollution rights" was created via climate certificates. This market is now experiencing explosive growth. The Canadian provider dynaCERT has technologies for reducing CO2 emissions and knows what this billion-dollar market is all about. As part of the increasingly important international hydrogen economy, dynaCERT is using a patented technology to achieve significant emission reductions in combustion processes. Soon, tradable emission certificates will be available for this. This makes environmental protection meaningful and enjoyable at the same time.
Bayer's economic future is currently on shaky ground. The shares of the Group with its three pillars, Consumer Health, Pharma, and Agriculture, fell by almost 20% this week after a late-stage drug trial in the Pharma division was halted. In addition, a considerable compensation payment of EUR 1.5 billion in connection with the US glyphosate business has put the Leverkusen-based company in an unusually precarious position. The Company lost around EUR 7.7 billion in value in one day due to the price slide, and the share price fell to EUR 33, marking a historic low for Bayer AG shares since the financial crisis in 2009. Currently, the Bayer Group is only worth around EUR 32.77 billion. What needs to happen now for a possible way out of this dilemma? Would the often talked-about split-up of the Group be a solution for the further growth of the Group?