April 20th, 2021 | 07:00 CEST
BMW, Nevada Copper, Geely - The supercycle is unstoppable!
Table of contents:
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
Demand greater than supply
The green revolution is fueling copper demand. Experts predict that more copper will be mined in the next 25 years than in all of human history to date. An electric car requires four times more copper than a car with an internal combustion engine. The production of a wind turbine consumes 30 tons of copper per turbine, including connection to the power grid. In Germany alone, 420 plants were installed last year, and the trend is rising. In addition to the excess demand, there is another problem. Copper projects are few and far between, and the development of new projects has been severely neglected in recent years. Only insecure regions such as Mongolia or Indonesia have increased copper production.
A strong player from North America
With the trade war between the US and China likely to further disrupt global supply chains, domestic producers are more in demand than ever. So, Joe Biden will be pleased to hear, Canadian copper producer Nevada Copper is in the right place at the right time. They own one of the few production-ready new sources of copper in North America. The Company, which has been active since 2007, is searching for metals not far from the headquarters of Tesla and Google in the US state of Nevada in its own Pumpkin Hollow copper project. Pumpkin Hollow has significant reserves and resources, including copper, gold and silver. Among the major shareholders are well-known addresses such as Pala Investments and BlackRock.
Significant Exploration Potential
The Company's two fully-permitted projects include the high-grade underground mine and processing plant, which are now in production, and a sizeable open-pit project where progress has been made toward feasibility. In addition, several targets on the property have already been defined. The Company, which has faced delivery stoppages and delays on many occasions in the past, announced a breakthrough last month. The production shaft of the main shaft of the Pumpkin Hollow mine in Nevada has been put into operation. It can now bring up to 5,000 tons of copper ore per day to the surface. The turnaround, which was initiated with the new management last year, is now nearing completion. With the copper price rising, Nevada Copper is likely to be one of the beneficiaries of the supercycle.
In 2010, the Chinese Geely Group took over Swedish premium manufacturer Volvo. Since the Geely takeover, the Swedish carmaker's global sales have nearly doubled. In 2019, Volvo achieved its sixth consecutive sales record with over 700,000 sales. Geely is also Daimler's largest single shareholder, with around 10%. The Chinese are now using this built-up network to enter the electric car market with their ninth brand, Zeekr. With the Zeekr 001, which is said to have a range of 700 km, the Company says it wants to show that the days of "boring electric cars are over." Recently unveiled at the Company's new factory in Hangzhou and now at the Shanghai auto show, the vehicle is also said to be "the world's first electrically powered shooting brake." The 001 was designed at the Company's Swedish design center in Gothenburg.
Zeekr also plans to build a total of 2,200 charging stations with over 20,000 charging options by the end of 2023, with further expansion planned over time. Payment will be made digitally via vehicle registration and recognition. Deliveries are to begin in the fourth quarter, initially in the home market of China. The Company is aiming for global expansion in 2022.
BMW with an announcement
Also underway is the battle for the best batteries. Bavarian automaker BMW has now announced that it will continue to push the development of solid-state batteries. The aim is to develop a solid-state battery for series production by the end of the decade. Solid-state batteries are regarded as an important future technology in vehicle construction. A liquid carrier material no longer transports the charge. The Munich-based share price is currently stuck at a broad resistance zone at EUR 70. Due to the rapid doubling of the share price in recent weeks, the signs point to consolidation. A setback to the level of EUR 55 would be an interesting entry level.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.