Better than Nvidia! Vistra, Siemens Energy, Nordex, XXIX Metal

XXIX Metal: Winners of the Copper Boom

Copper started the new year with a price jump of 4% to around USD 9,200 per ton. According to the experts at Citigroup, this could be just the beginning of a strong rally. They consider a copper price of USD 15,000 by the end of the year to be realistic. The optimism is understandable. After all, demand for copper is rising rapidly. It is used in numerous growth industries, including high-performance cables and cooling systems for data centers, electric vehicles, motors for wind turbines, and solar panels. According to Statista, the copper market is expected to grow from around USD 170 billion in 2022 to USD 260 billion by 2030. After the copper price rose above USD 10,000 in April 2024, a sharp correction followed. The metal seems to have recovered from this. XXIX Metal, named after the atomic number 29 of the element copper, is an exciting opportunity to benefit from this development.

The Company is developing two high-grade open-pit mining projects in Canada with a current copper equivalent of 4.8 billion pounds in total. New drilling is expected to further increase the resource. This will also make the Company a takeover candidate for one of the major producers, such as Newmont or Barrick Gold. XXIX Metal's flagship project is Opemiska. The open-pit project covers 13,000 hectares and has by far the highest copper content in Canada, ahead of Newmont projects. The second project, Thierry, is among the top 5 in the North American country, with almost 0.40% copper content. Both projects already have good infrastructure.

Recently, there were further positive drilling results at Opemiska. A focused 3-hole drilling in the relatively unexplored Saddle zone returned 11 meters with 5.3% Cu and 1.20 g/t Au from 81 meters. Therefore, the Company is planning further extensive drilling programs and is confident that it will be able to further increase the resource estimate.

This should make the XXIX share a leverage play on the copper price.

Siemens Energy: Share price breakout

Like XXIX, Siemens Energy is also a winner in the world's hunger for energy. While the wind business is weakening, the grid business is doing splendidly. After the share price hovered around the EUR 50 mark for several months, it broke out upwards last week and is now trading above EUR 60. This means the DAX share has gained almost 19% in the new year alone.

The price drivers are the USA. The new US president announced a new AI offensive in his first week in office. As part of the "Stargate" project, USD 500 billion will be invested in AI data centers in the coming years. In addition, regulations for the AI industry have been removed. Furthermore, Meta has announced that it will invest up to USD 65 billion in AI infrastructure this year.

Companies such as Vistra as an energy producer, XXIX as a copper explorer, and Siemens Energy as a provider of grid infrastructure are benefiting from this. Analysts will likely become active at Siemens Energy after the latest price jump. Many price targets are around EUR 60. Either the "Buy" recommendation has to be changed, or the price target has to be raised.

Nordex: The loser of the Trump rally?

Where there are winners, there are usually also losers. In the US, under Donald Trump, these seem to be renewable energies, especially in the wind industry. Last week, industry giant Orsted shocked the market. The Company had to make write-downs of around EUR 1.6 billion in the fourth quarter due to problems in its US business. In addition to rising interest rates, the Company is suffering from delays and higher costs in its offshore wind power projects.

This shows that Nordex is also exposed to risks in the US. Although the Company reported a strong order backlog two weeks ago, 12% came from North America. At the time, the outlook of the CEO was clearly positive. "I am very pleased that the momentum of our order intake, particularly in the last few weeks of the year, clearly demonstrated that we can offer our customers a highly competitive product portfolio. Numerous orders from our core markets in Europe, as well as significant orders from North America, have contributed to a substantial order backlog at stable prices through to the end of the year. Nordex is well positioned for the future, and I expect that, given a stable macroeconomic environment, we will continue to see strong demand for our products in 2025," said Nordex CEO José Luis Blanco. It remains to be seen whether the outlook will darken during the year due to changes in the US business.

The Trump rally continues for now. Regardless, energy demand is set to increase rapidly in the coming years. At the beginning of the value chain, XXIX Metal, with its copper projects, will likely benefit from this. Especially if the copper price has overcome its weak phase – which it seems to have. Siemens Energy is also currently unstoppable. However, the wind business is being completely overlooked at the moment. At Nordex, it will be interesting to see whether the US projects can actually be implemented as planned in the current year.