Deutsche Rohstoff AG, established in 2007, is a German holding company that focuses on the exploration and production of natural resources, primarily oil and gas, as well as metals such as gold, copper, tungsten, and strategic metals for high-performance batteries. The company has a strong presence in North America, Australia, and Europe, with significant operations in the development of oil and gas deposits in the United States. Deutsche Rohstoff AG leverages the commodity market opportunities and the expertise of its teams in Mannheim, Leipzig, and Denver to generate high returns for shareholders. Over the years, it has successfully developed over 100 oil wells in the U.S. and operated a gold mine and a tungsten mine in Australia. The company is publicly traded and aims to provide continuous and reliable dividends to its shareholders.
The company's journey began with the establishment of subsidiaries and acquisitions, including Rhein Petroleum GmbH in collaboration with Herzford International and Activa Resources, and a significant stake in the Canadian company Aurora Resources Inc. It expanded its portfolio to include rare earths, tin, and copper exploration in Germany and ventured into gold production in Australia with the development of the Georgetown gold mine. Over the years, Deutsche Rohstoff AG has been involved in various projects, including silver extraction in Hesse, Germany, and river gold from the Rhine. It made a notable entry into the U.S. oil and gas sector by founding Tekton Energy LLC, with significant oil production starting in 2012 through hydraulic fracturing methods.
The company's strategic investments extend to the metals sector, with a focus on strategic metals needed for high-performance batteries, among other applications. Its most notable investment is in Almonty Industries, specialized in tungsten mining. Almonty Industries operates in Portugal and is increasing its market presence with the Sangdong project in South Korea, aiming to become the largest tungsten producer outside China.
Deutsche Rohstoff AG emphasizes investor relations, focusing on trust, transparency, responsibility, and consistency. It positions itself as a commodity expert, actively exploiting the opportunities of international commodity markets to allow investors to participate in the growth of the natural resources sector. The company has reported significant revenue and EBITDA growth over the years, underscoring its commitment to long-term growth and value creation through sensible investments in production growth, acquisitions, new ventures, and occasional disposals.
Deutsche Rohstoff AG has demonstrated a trajectory of growth in terms of income and has articulated long-term goals that reflect its ambition to capitalize on the natural resources sector, especially focusing on oil, gas, and metals.
Worth and Income
The financial performance of Deutsche Rohstoff AG is reflected in its reported revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), key indicators of the company's profitability and operational efficiency. For the year 2022, the company reported substantial revenue and EBITDA, with revenue reaching approximately €165.4 million ($276m AUD) and EBITDA around €139.1 million ($232m AUD). These figures represent a significant increase over previous years, indicating a strong financial performance and growth trajectory.
For 2023, Deutsche Rohstoff AG reported a strong financial performance in the first three quarters, with record results being highlighted in the third quarter specifically. In the first quarter, the company achieved a revenue of EUR 42.7 million and consolidated net income of EUR 14.6 million. By the end of the third quarter, cumulative revenue reached EUR 132.6 million, with net income for the same period totaling EUR 42.6 million.
The company has updated its guidance for 2023, projecting revenues between EUR 150 to 170 million and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the range of EUR 115 to 130 million. This forecast is based on an oil price assumption of USD 75 per barrel, a gas price of USD 3 per MMBtu, and an exchange rate of 1.12 EUR/USD for the remainder of the year. For 2024, Deutsche Rohstoff AG anticipates further growth, with revenue expected to range from EUR 170 to 190 million and EBITDA from EUR 130 to 145 million.
These financial achievements and forecasts underscore Deutsche Rohstoff AG's strategic focus on expanding its oil and gas production capabilities while maintaining a robust financial position. The company's commitment to significant investment in drilling and production projects, as well as its ability to adapt to changing market conditions, supports its long-term goal of sustainable growth and value creation for its shareholders.
Long-Term Goals
Deutsche Rohstoff AG aims for long-term growth and value creation through strategic investments in the production growth of its core sectors—oil, gas, and metals. The company seeks to achieve this by making economically sensible investments, acquisitions, new ventures, and occasional disposals. It is committed to maintaining a healthy balance sheet and reinvesting earnings from the oil and gas business, as well as partially from the metals sector, to support this growth. Moreover, Deutsche Rohstoff AG endeavors to provide its shareholders with attractive dividends derived from long-term secured earnings.
The company acknowledges the enduring global demand for oil and gas, which is projected to rise for many years or even decades. With approximately 700 million people worldwide lacking access to electricity and about 2.4 billion people without access to non-harmful cooking fuels, Deutsche Rohstoff AG recognizes the critical need for secured energy supplies as a foundation for economic and technological progress and social peace. Additionally, Deutsche Rohstoff AG is poised to tap into emerging markets such as electromobility and battery markets, with activities in tungsten and lithium sectors aimed at contributing to these developments. The company sees economic potential in various markets, underlining the indispensable role of raw materials in technology advancement.
This strategic direction, emphasizing long-term growth and sustainable investment in natural resources, positions Deutsche Rohstoff AG to leverage the opportunities presented by the global commodity markets while ensuring steady and profitable growth.
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