19. August 2021 | 13:27 CET
BYD, Fisker, Kodiak Copper, E.ON: Copper remains the linchpin!
According to the Paris Protocol, the implementation of the climate targets is based on the conversion to electric drives, the use of renewable energies, and sustainable raw material management. In addition to the development of new raw material deposits, especially in the field of battery metals, the topic of recycling is coming up. Here, too, it is crucial which resources are used to recover the metals. Currently, some copper projects are under development, but it will take 2-3 years before they can deliver. Part of the whole castling will also be the power companies because they have to provide the planned power purchase for the coming years, and this could be tight, especially for Germany.
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ISIN: BYD CO. LTD H YC 1 | CNE100000296 , KODIAK COPPER CORP. | CA50012K1066 , E.ON SE NA O.N. | DE000ENAG999 , US33813J1060
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
BYD - The new "Dolphin" model is on the starting line
One of the main protagonists in the Chinese e-mobility market is BYD. In China, the technology group has launched the pre-sale of its new NEV model Dolphin, a compact four-door electric car. Like the Tang SUV, the NEV is equipped with the new blade battery system (LFP battery) and is based on the E-Platform 3.0 with 800-volt power.
The base model of the front-wheel drive Dolphin compact electric car has a 70-kW motor and is priced from 96,800 yuan, which is less than EUR 13,000 after deducting the government subsidy. The top model in the Dolphin series features a 130-kW motor and is available from 124,800 yuan. BYD also offers various blade battery systems for the zero-emission e-vehicles. The clear strategic advantage at BYD is the integration of battery and automobile manufacturers within one Group.
The share price of "Build Your Dreams" remains strong and, at around EUR 28, is not far from its high. The numbers were only within expectations, but the stock market is looking much further ahead here. Hold their stocks with a stop at EUR 25.
Fisker - Another new player in electric mobility
Still relatively unknown to the majority is Fisker. Currently, however, it hails rather poor news from the Californians. The market launch of the Fisker model "Ocean" was surprisingly postponed, and there are hardly any details about a planned further model. The Company's founder Henrik Fisker is doing the same as his role model Elon Musk and is tweeting heavily. He complains about the short-term positioning of some investors, a questionable style in our opinion.
Initially, it was supposed to be with the customers, the miracle car called Ocean, with which the designer and start-up entrepreneur Henrik Fisker appeared at the beginning of 2019. It should take less than three seconds from 0 to 100 km/h and cost a whole USD 37,499 before subsidies. Design and functionality are convincing at first glance; how the car actually runs on the road is still a secret. Unfortunately, the market launch has now been postponed to November 2022.
Since the stock market launch, the share price has moved rather unspectacularly, but some movement has set in over the past 2 weeks. Morgan Stanley had particularly praised Fisker and accelerated the price in just 3 days by 40% upwards. The Company then announced a USD 625 million financing via a convertible bond, and it went steeply down again. Currently, the share price is back around EUR 12, after briefly exploding to over EUR 17. If the CEO delivers more and tweets less, it could get going again before mid-2022.
Kodiak Copper - Perfect copper property in British Columbia
The daily price rush of the red metal, with prices reaching USD 10,000, is also focusing great attention on second-tier resource stocks. Who could be the quickest to supply the huge undersupply of the market? One clear future supplier to the tight consumer markets is Kodiak Copper, a British Columbia explorer. The MPD project property is located close to well-known mines such as Copper Mountain, Highland Valley, and New Afton.
As a relatively soft metal, copper is readily malleable and ductile. As an excellent conductor of heat and electricity, it has many uses. In addition to electromobility, it is used primarily in all high-tech products, building materials and medical equipment requiring high electricity efficiency.
Kodiak Copper is currently still on track for its fully-funded drilling program in 2021. Unfortunately, some bush and forest fires near the MPD copper-gold porphyry project in southern British Columbia led to the temporary evacuation of the property. However, Kodiak Copper Corp. expects the situation to improve soon due to weather conditions. In the meantime, Nancy Curry, an experienced communications expert, has been added to the management team.
The KDK share is currently trading around CAD 1.40, which provides CAD 68 million in market capitalization. That is very little concerning possible buyers of the MPD project. In the current news situation, one should certainly collect a few pieces.
E.ON - The power giant is back again
Within the power sector, we like to remember the E.ON stock in recent weeks, which is in the process of completing its 10-year consolidation phase and bottoming out in chart terms. With a 6-month performance of +28%, it is also one of the best DAX stocks since the beginning of the year.
Fundamentally, the electricity giant has become one of the largest private energy companies. The Group focuses primarily on the energy networks and customer solutions businesses. The Energy Networks business area combines the distribution networks for electricity and gas and the associated activities. In the customer solutions field, E.ON targets residential customers and medium-sized and large companies, offering products and services, among other things, to increase energy efficiency. The former core business of conventional power generation was spun off and placed on the stock market under the name Uniper. E.ON is now very sustainably positioned with hydro, wind and solar power.
The market capitalization is now at the EUR 30 billion mark. The Company is again distributing EUR 1.2 billion annually and thus yields about 4%. For stock exchange investors, the bell was rung about 2 months ago to enter the market, but it is not too late from a chart-technical point of view because the 5-year high of EUR 11.55 is within reach.
A portfolio against climate change is hard to define because any industrial activity strains the planet and its resources. E-mobility is a future topic, and energy production is also undergoing a sustainable change. Kodiak Copper serves all schools of thought because it secures the future supply of the scarce raw material copper.