Menu

Recent Interviews

Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


18. January 2021 | 09:48 CET

BYD, Defense Metals, Nornickel: Still investing in electromobility?

  • Rare Earth Elements
Photo credits: pixabay.com

Electromobility is a trend that is making waves on the stock market: Car manufacturers such as Tesla or BYD are benefiting from the rising demand and the vision of the future, but so are commodity companies. The reason: If you want to drive electric cars with low emissions, you need more raw materials for energy storage and motors than for classic combustion engines. Typical candidates are copper, cobalt, or lithium. Rare earth metals play a unique role. So far, most of them have come from China - and some are mined under dubious conditions. But anyone serious about sustainability must look at the entire value chain when it comes to electromobility and pay attention to raw materials from producers with a good ESG profile. For raw material companies outside China, this is an opportunity.

time to read: 3 minutes by Nico Popp
ISIN: CA2446331035 , CNE100000296 , US55315J1025


 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


BYD: Sustainable only at first glance

Although companies like BYD, in particular, rely on raw materials from China, it is no longer a secret within the industry that electromobility, as it currently rolls off the production lines of the major carmakers, is not as sustainable as it seems. A few months ago, ARTE's documentary caused a sensation, taking a critical look at the raw material sources of regenerative energy. In China and South America, rare earths and copper are unearthed under inhumane conditions and with significant environmental consequences. Although such considerations do not yet play a role in the stock market, Tesla CEO Elon Musk, for example, has already announced that he intends to attach greater importance to the origin of raw materials in the future.

The BYD investment story remains intact, even with raw materials that are not sustainably mined. Investors continue to buy the stock, even though the rally around alternative drives has been taking on excessive proportions for weeks. On a three-month horizon, BYD climbed by around 78% and took a short breather at the end of last week. Fundamentally, things are still going well for the Company. In addition to a significant order for electric buses from Colombia, the Company also announced the relocation of parts of bus chassis production to the UK and the market launch of a new plug-in hybrid drive, which the Company says should further improve BYD's competitiveness. While the stock currently appears overheated like many other comparable stocks, speculative investors can stick with it. However, the drop rate for stocks like BYD is already high.

Defense Metals: Rare earths outside China are in demand

The Defense Metals share has risen somewhat less sharply so far, even though the value can undoubtedly keep up with BYD on a three-month view. Defense Metals is a commodities company that searches for rare earth deposits in Canada, urgently needed for green technologies. According to Defense Metals, the Wicheeda project in British Columbia has inferred mineral resources of 12.1 million tons at an average grade of 2.9 lighter rare earth metals. In recent weeks, Defense Metals saw several call options come off the market, which injected new capital into the Company's coffers. While such dilutions usually put pressure on the share price, Defense Metals' stock jumped and at times reached levels just below EUR 0.30 in Germany.

The relative strength of this could be that the newly raised funds are to be spent on a feasibility study, which will ultimately provide more detail on the project's economics. Given the high proportion of rare earth projects in China and their often-unsustainable extraction, projects in North America could attract increased interest in the future. In general, rare earths are scarce, and new projects are therefore in high demand. After the consolidation of the past few days, Defense Metals could become attractive again in the medium term. However, the stock remains a hot potato given its market capitalization of EUR 12.6 million.

Nornickel: Solid, but not a hyped stock

The Nornickel share is much more established. The Moscow-based company produces copper, nickel, palladium, platinum and also by-products such as cobalt, selenium and rhodium. The Russians at Nornickel have also recognized that sustainability is an essential trend in the mining industry and are currently converting their production accordingly. For example, smelter production was shut down by the end of the year to reduce sulfur dioxide emissions. The Company also wants to become more sustainable in copper production thanks to new technology. The threat of a USD 2 billion fine for Nornickel after large quantities of diesel leaked from a tank in June also shows that such investments are worthwhile.

Although the Company is making progress, the share price is riding a roller coaster: Over a one-year period, the stock has only managed a return of slightly more than 10%. Within three months, the return was around 40%. To bet on the development of essential base metals and at the same time to be able to sleep peacefully, the share of Nornickel is quite suitable. However, the Russian raw materials producer is only marginally involved in the hype of shares surrounding major trends such as the mobility revolution. More promising are young projects of up-and-coming companies, such as Defense Metals, which promise great leverage on the raw materials market's development if the business is successful.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

19. February 2021 | 10:25 CET | by André Will-Laudien

Defense Metals, BYD, NEL, Plug Power - Rare earths, who is the fastest?

  • Rare Earth Elements

Scarcity is the issue in 2021! Western governments have completely miscalculated regarding technological progress. They are now being driven by the industry; decisions that should have been made 5 years ago are now being followed abruptly. Since Battery Day in mid-September 2020, it has been clear that a technology giant like Tesla, led by Elon Musk, will enter large-scale battery mass production. What is missing is the complete closing of ranks between battery and car manufacturers so that the produced and expensively developed high-performance batteries are also installed in e-cars through corresponding demand. In coordination rounds between the automotive industry and the EU, the decision has probably already been made: E-mobility will come, and it will come in the big version...!

Read

26. January 2021 | 08:05 CET | by Carsten Mainitz

Lynas Rare Earths, Defense Metals, Arafura Resources - Rare Earths: still in time to get in before the boom!

  • Rare Earth Elements

China has dominated the rare earths market for a long time. A supply shortage in the People's Republic and a substantial increase in demand can lead to a massive price increase of the commodity group at any time. These price increases are then often reflected in the share price of relevant players. Rare earth metals are in demand in a wide range of industries and to close the emerging supply gap the production of rare earth metals must be increased outside of China. We present three opportunity stocks that will benefit from industry trends and scarcity prices as producers or prospective producers.

Read

07. January 2021 | 09:50 CET | by Stefan Feulner

JinkoSolar, Defense Metals, BYD - demand boom leads to catastrophe!

  • Rare Earth Elements

The sales figures for all major electric car manufacturers for the full year 2020 are on the table. 100% more e-cars were sold compared to the same period last year. But even more significant for the future is that vehicles with electric motors have overtaken pure combustion engines in new deliveries. The disruptive replacement is in full swing. However, shortages are emerging in the raw materials needed for the production of batteries and motors.

Read