You may have not heard of germanium, but this platinum group metal (PGM) is a critical component in modern technologies, including the increasingly important renewable energy sectors. Its high refractive index and transparency to infrared light make it indispensable in fiber optics as well as in the performance enhancement of high-efficiency solar cells.
As such, the global germanium market already hit USD$309 million in 2023 and analysts project it will reach approximately USD$403 million by 2030.
Growing supply-constraints coupled with this rapidly rising demand, make germanium stocks a prime contender for your investment portfolio.
One such PGM stock poised to add significant market value is Battery Age Minerals Ltd. (ASX: BM8). BM8 is an Australian miner focussed on the exploration and development of its flagship Bleiberg Germanium project in Austria.
At the end of November, the AUD$13.74 million junior explorer made the decision to strategically capitalize on germanium’s popularity. Prescient thinking as China, the world’s largest supplier of germanium, controlling over 60% of global production, moved to ban the export of critical minerals such as gallium and germanium to the U.S. after Washington’s clampdown on China’s semiconductor industry.
China-US ‘tech war’ sees critical mineral bans
Last Tuesday, China’s Ministry for Commerce made the latest move in the brewing China vs. United States “tech war” – a suite of critical minerals, including gallium, germanium, and antimony, were all formalised as banned exports.
The sharp December move is a ramp-up of Beijing’s past restrictions on commodities and a response to Washington restricting advanced chips being exported to China.
This move could seriously disrupt the supply chain for critical minerals – but some Australia-listed companies, like Battery Age Minerals, stand to take advantage of the geopolitical posturing with projects already underway.
For BM8 in particular, that Bleiberg shapes as the perfect play.
Bleiberg Germanium Project
Located in the European Union, the Bleiberg project is perfectly situated to take advantage of both the European and northern hemisphere markets where the U.S. alone gobbled up approximately 30 metric tons of germanium in 2022.
Bleiberg consists of 116 claims covering 6,582.4 hectares and is located approximately 130km south of the city of Salzburg, in southern Austria.
The project is in a historically prolific lead-zinc mining region commercially active since the 16th century. The Bleiberg mine site has been in commercial operation for 700 years, with first operations more than 2,000 years ago.
Bleiberg property is one of four major Mississippi valley type lead-zinc camps, in a regional suture stretching from Italy through Austria and Slovenia to Romania. The Bleiberg mine was one of the world’s top six largest germanium producers, producing approximately three million tons of zinc and lead metal with an average grade of 1% Pb, 5% Zn, and 200 ppm germanium from 1336 until the mine closed in 1993.
There are extensive workings on the property with approximately 1150 km of existing tunnels and several mine shafts as well as other infrastructure built throughout the mine’s history.
Exploration plans
BM8 is building on this rich history with CEO Nigel Broomham and Chief Geological Advisor Dr Simon Dorling recently completing a fieldwork program at Bleiberg.
During the program, BM8 was able to verify historical mining and exploration records, assess access to target areas, and collect geological data necessary to further refine the junior explorer’s maiden drilling targets.
Mr. Broomham commented, “By leveraging over a century of historical geological data, we are not only validating our drill targets but also positioning ourselves to tap into the significant opportunities presented by the rising prices of zinc, germanium and gallium.”
The upcoming drill campaign will focus on exploring the potential extensions of known mineralisation as well as the highly respective “West Extension.”
BM8 is solidifying its exploration aims with the continual positive engagement with local stakeholders, including the Bleiberg and St. Stefen’s Mayor’s offices, the Austrian Forestry Company, and the Austrian Mining Authority. The company also carried out introductory meetings with private landowners, drilling companies and potential contractors.
Off these considerable efforts, Dr Dorling and Mr. Broomham are putting together the documentation for the company’s maiden drilling permit, with plans to submit them before the end of calendar year 2024.
Conclusion
The already limited global supply of critical minerals, particularly germanium, will drive a healthy industry demand, providing sustainably positive returns for investors. BM8 is very well positioned to take advantage of this situation, and the market has already seen it, with shares in the company up 35% at close of trading on December 4, 2024.
At AUD$0.14 per share, BM8 runs relatively undiluted at 93.1 million shares as of June 30, 2024. This means share price will be easy to move, and it won’t take a lot of news to fuel a run. With 100 years of historical data, a prolific past-producing asset in Bleiberg, a near-term positive market bump seems likely.
Moreover, if trade tensions and geopolitical conflicts continue to evolve in the direction they seem to be heading, BM8 could potentially represent an even more lucrative value proposition for shareholders in the long term as America and the EU work to secure critical material supply chains.
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