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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%"


Gary Cope, President and CEO, Barsele Minerals

Gary Cope
President and CEO | Barsele Minerals
Suite 1130 - 1055 W. Hastings Street, V6E 2E9 Vancouver (CAN)

info@barseleminerals.com

+1(604) 687-8566

Interview Barsele Minerals: 'I have never seen a project with such good general conditions'.


05. July 2021 | 12:08 CET

BYD, Kodiak Copper, Varta: E-car investments - here is how investors reduce risks

  • Copper
Photo credits: pixabay.com

Copper is the metal of the past fifteen months. Why? Quotations stabilized early on after the Corona Crash. At first, only industry insiders took notice of this relative strength. But it was the starting signal for a copper rally, unlike anything the industrial metal has seen in a long time. From the low in 2020 to the high in 2021, copper has climbed by almost 140%. Which trends are responsible for this, and how investors can invest.

time to read: 3 minutes by Nico Popp
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , KODIAK COPPER CORP. | CA50012K1066 , VARTA AG O.N. | DE000A0TGJ55


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

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: Perfectly positioned, but...

Copper is primarily an industrial metal. Whenever more steel is used, the price of copper also rises. However, copper is now also a future metal: there is around three times more copper in electric cars than in classic combustion engines. Even the charging infrastructure cannot do without the metal with the distinctive color. It is no wonder, then, that the surge in shares such as those of the Chinese electric car manufacturer BYD has also boosted copper. BYD climbed by a whopping 251% in the past twelve months. Most recently, the share price has again risen like clockwork. But what is the reason for this?

More and more market participants recognize BYD's outstanding market position. In addition to its battery production, the Company also has its chip division. While giants like Volkswagen could first expand their supply chains in this direction and seek investments around promising suppliers, BYD already has everything a modern automaker needs. The vehicles are also convincing, and some can already drive over 1,000 kilometers on one charge. The downside of this promising market position is the already ambitious valuation - the market has generously distributed advance praise in recent months. As a result, the share is therefore no longer inexpensive.

Kodiak Copper: Operational success, wait and see approach

The situation is different for Kodiak Copper. The Canadian Company is best known for its MPD copper-gold project in the Canadian district of British Columbia. Over the past year, drill results are causing the stock to rise like a phoenix from the ashes. The rally took the stock from CAD 0.50 to CAD 3. The Company then raised fresh capital, and the stock stabilized above the CAD 1.50 level. Kodiak also made progress operationally: in addition to further encouraging drill results, such as a 213-meter intercept with grades of 0.65% copper, the Company purchased an adjacent property that is also believed to contain promising deposits of copper and gold. Kodiak thus has 14,716 hectares of project area. The new property is also accessible year-round via roads and connects to locally existing infrastructure.

Already several times this year, Kodiak Copper's share price twitched upwards and scratched the CAD 2 mark in Canada. Currently, the value has come back again. Investors who want to invest in high-growth companies instead of commodity multinationals can take a closer look at the value. Even with small capital investment, investors have a foot in the door and can profit from the dynamics of a speculative small-cap from the copper sector. In order to limit the risk, it is advisable to orientate oneself on the previous price trend. In 2021, the value never traded below CAD 1.38. Kodiak Copper should be solidly supported here.

Varta: Batteries "Made in Germany" as a success story?

Much better known than Kodiak Copper is the share of Varta. The battery manufacturer is primarily known for its high-performance button cells. At the end of the year, Varta also wants to take the plunge with batteries for electric cars and is planning pilot production. Since many German carmakers are looking for partners in this area and batteries "Made in Germany" are also likely to be in demand among customers, the story is highly traded on the stock market. But the euphoria is already fading - investors have realized that Varta will not become a German BYD. It is not clear whether the Company is competitive - after all, the Asians have been building e-car batteries for quite some time. Investors are well-advised to wait and see.


Better to invest at the beginning of the value chain: While BYD is already expensive and Varta's success somewhat uncertain, Kodiak Copper's stock could be a good compromise. The Company has already made a name for itself on the scene but is still moderately valued at around EUR 50 million. In addition, Kodiak is likely to benefit from the boom in electric mobility regardless of whether Varta's batteries or BYD's ultimately win the race. Especially when industries are still developing, investing at the beginning of the value chain makes sense.


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:

21. July 2021 | 12:49 CET | by Armin Schulz

QMines, Varta, Siemens Energy - Who benefits from the copper shortage?

  • Copper

The copper price has moved significantly upwards over the past year. On the one hand, this is due to the increasing demand caused by sustainability topics such as renewable energies, e-mobility and global electrification. On the other hand, the metal has become scarce. Whereas 60 profitable copper projects were launched in 2008, only 36 were established in 2020, and this with declining mining values. In 2015 0.65% copper per ton was still being mined; this value will fall to 0.55% by 2025. Existing large copper mines will also need billions in the coming years to maintain their production levels. These additional costs will be passed on to consumers. Today we highlight three companies that either produce or need copper.

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20. July 2021 | 12:38 CET | by André Will-Laudien

BYD, Volkswagen, Kodiak Copper: The 1000 Dollar Correction!

  • Copper

The copper price had reached its interim high in May 2021 at around USD 10,500. Since then, we have seen a standard consolidation of 10-15%, which is not an unusual occurrence in an uptrend. The increase since the beginning of 2020 is over 100%. Copper mines have been able to post multiple performances in the same period, and the recent correction was accordingly somewhat higher. For many market participants, however, the medium-term scenario for the industrial metal is set. Since the political closing of ranks on e-mobility, demand for copper and battery metals has shot through the roof. Mine operators worldwide are alarmed; the currently recoverable capacities cover just 85% of the demand from 2022. Who can close the gap?

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19. July 2021 | 11:05 CET | by Carsten Mainitz

Barrick Gold, GSP Resource, SMA Solar - Buy Prices?

  • Copper

Raw materials and energy are central prerequisites for our life as we know it not to stand still. Often it is only when there are supply bottlenecks and significant price jumps that we become aware of the importance of what is suddenly no longer readily available. Due to their fundamental importance, commodities and energy are therefore forward-looking investment themes. We present three exciting companies. Who will win the race?

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