Strategic Resources: Exciting Value Chain
Strategic Resources’ stock is still new on German exchanges. This could prove to be an opportunity for early investors. The investment case is highly interesting, if somewhat complex. The company specializes in developing critical minerals. The focus is on high-purity iron, vanadium, and titanium. The flagship projects are the construction-ready BlackRock project in Québec, Canada, and the historic Mustavaara mine in Finland.
With the BlackRock project, Strategic Resources aims to establish North America’s first vanadium-titanium-magnetite mine. Thanks to the use of hydropower and green hydrogen, the company can employ particularly low-emission metallurgical processes. This is because Strategic Resources does not want to be a traditional explorer that merely searches for deposits and publishes drill results. In an interesting interview with Lyndsay Malchuk of the IIF, CEO Sean Cleary presented a company that aims to extend the value chain and capitalize on the trend toward electromobility and “green steel.”
For example, Strategic Resources is developing an already approved pellet plant for high-purity iron ore in Port Saguenay, Québec. An expansion to an annual capacity of up to 4 million tons is already in the planning stages. The goal is to supply the steel industry with high-quality, low-carbon pellets—particularly in Europe, where stricter climate regulations and the Carbon Border Adjustment Mechanism are driving demand for lower-emission raw materials. Cleary explained that the company expects to receive the expanded environmental permit by the end of the second quarter. After that, engineering work and construction preparations are set to accelerate further. Construction could begin as early as next year.
At the same time, the company is working with battery developer Tyfast Energy on a North American supply chain for vanadium-based battery materials. The plan is to process battery-grade vanadium oxide from the BlackRock project and use it to produce high-performance lithium-vanadium oxide anodes. The partners see significant potential, particularly in sectors such as mining, defence, and industrial off-road applications, where robust batteries with fast charging and high cold-temperature performance are in demand. In the long term, this could result in a fully integrated value chain from mine to battery, strengthening Canada’s position as a key hub for critical battery raw materials.
https://youtu.be/ha8A2-FPIwk?si=DTXRA-WjgIjnPWZN
D-Wave After the Quarterly Results
And what is D-Wave actually doing? Amid the AI hype of recent months, things have quieted down somewhat for the quantum high-flyer. So far this year, the stock has lost about 35% of its value and is trading just over USD 18. The all-time high in October 2025 was nearly USD 50. At USD 6.7 billion, the company is anything but cheap even at current levels.
The report on the first quarter of 2026, released last week, provided no new momentum. On the contrary, the stock subsequently lost over 10%.
This is because D-Wave Quantum reported a significant revenue decline in the first quarter of 2026. Revenue stood at USD 2.9 million, down approximately 81% from the prior-year figure of USD 15 million. This is primarily due to a base effect, as the sale of a quantum computing system in the first quarter of 2025 had contributed exceptionally high revenue. At the same time, however, bookings rose sharply to USD 33.4 million from USD 1.6 million in the prior-year period. Remaining performance obligations (RPOs) also increased significantly to USD 42.4 million. However, the net loss also increased from USD 5.4 million to USD 18.4 million. The result was particularly affected by higher investments in research and development and acquisition-related costs.
Among the most important operational developments was the acquisition of Quantum Circuits, a specialist in fault-tolerant gate-model quantum computers. D-Wave aims to use this acquisition to accelerate the development of scalable and error-corrected systems. The company also announced a record USD 10 million contract for quantum Computing-as-a-Service with a Fortune 100 corporation. Additionally, D-Wave agreed with Florida Atlantic University to sell an Advantage2™ quantum computer valued at USD 20 million. In research and development, the company collaborated with the Japanese pharmaceutical company Shionogi on AI-assisted drug discovery and published new research on advanced annealing protocols.
D-Wave presented an ambitious technology roadmap for the coming years. By the end of 2028, a dual-rail system with approximately 175 physical qubits is to be developed; in the long term, the company aims for systems with 10,000 physical qubits. By 2032, a platform supporting 100 logical qubits is expected to be available—an important milestone on the path to practical quantum applications. D-Wave plans to present further details on its strategy and product development at an Investor Day in early June. Management believes that rising bookings and growing demand for quantum solutions position the company well to benefit from the continued development of the quantum computing market.
Analysts responded to the figures with slight reductions in price targets. Mizuho lowered its fair value from USD 31 to USD 29, and Canaccord from USD 43 to USD 41. Both firms continue to recommend buying the stock.
Rheinmetall: Is the Stock a Buy Again?
Are Rheinmetall shares a buy again? The stock lost about 40% of its value since its all-time high of around EUR 2,000. Over the past two trading days, it has risen by about 8%.
For one thing, the stock price is benefiting from a potential billion-euro order. According to the German Federal Ministry of Finance’s proposal to the Bundestag’s Budget Committee, an order for a total of 2,030 trucks is planned for the Bundeswehr. The contract volume exceeds EUR 1 billion. Rheinmetall MAN Military Vehicles is to deliver the vehicles by November of this year. This represents another tranche of the existing framework agreement for a total of up to 6,500 vehicles.
In addition, the entire defence sector benefited from the quarterly figures published yesterday by the Czechoslovak Group (CSG). The Czech defence group, which went public earlier this year, started the 2026 fiscal year with significant growth. In the first quarter, revenue rose by 13.8% to EUR 1.54 billion. Operating EBIT increased by 8.7% to EUR 372 million. The order backlog rose to EUR 17 billion, and an additional volume of approximately EUR 27 billion is currently under negotiation. CSG also reported on the expansion of its production capacities and vertical integration, particularly in the ammunition sector. Among other things, additional manufacturing capacities were established in Europe. Furthermore, CSG secured several major contracts in the areas of ammunition, air defence, and armoured vehicles. The 2026 annual forecast and the medium-term targets were confirmed. The stock reacted to the news with a price jump of over 9%.
Rheinmetall shares also received a boost yesterday from Barclays. Analysts reaffirmed their “Buy” recommendation for Germany’s largest defence contractor. They expect the stock to rise to EUR 2,035. The growth story remains intact, and the second quarter of 2026 is expected to be strong.
Whether Rheinmetall is a bull trap or a comeback remains to be seen. Strategic Resources is an interesting newcomer with upside potential. The entire quantum sector is currently overshadowed by AI. If this changes again, D-Wave Quantum should be among the winners once more.
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