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Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


31. May 2021 | 11:45 CET

BYD, Kodiak Copper, Xiaomi - Copper: Buy or cash in?

  • Copper
Photo credits: pixabay.com

The demand for copper will continue to grow. These are the findings of the recently published study by the International Copper Association (ICA). The ICA predicts that by 2030, more than 250,000 tons of copper per year will be used as part of the windings in electric traction motors. But copper is also in demand in many other industries. Demand exceeding supply or supply bottlenecks can make the raw material more expensive overnight at any time. For this reason, today, we take a look at a budding copper producer. Of course, large demanders such as BYD or Xiaomi must not be missing in the consideration. After all, our everyday companion, the smartphone, contains 15% copper. Let us surprise you with three exciting investment ideas.

time to read: 4 minutes by Carsten Mainitz


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

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

About the author


BYD CO LTD - Old Swede

Chinese manufacturer BYD (Build Your Dreams) is one of the world's leading battery and accumulator manufacturers. With electrically powered buses and coaches, BYD has been active in Europe for some time and continuously reports major orders. A few days ago, a major order from Sweden for 79 purely electric buses was announced. Delivery of the vehicles is scheduled to begin at the end of this year. The Group recently announced its intention to enter the European market for electric cars this year. According to the Company, the launch will occur in Norway, as the country is the most advanced market in Europe in terms of market maturity and landing infrastructure.

According to media reports, the Group will make the opening move with the BYD Tang, an electrically powered SUV. The Han sedan, which will launch in China in June with new battery technology, is also expected to be introduced in Europe at a later date.

After many analysts were not so enthusiastic about the published Q1 figures, experts consider the title reasonably valued overall. Those who, like major shareholder Warren Buffett, believe in the long-term success of the Chinese Company's expansion strategy will use the phase of skepticism to get in. BYD currently weighs in at USD 14.3 billion and has a moderate 2022 P/E ratio of 16.

KODIAK COPPER CORP - Buy
Shares of Canadian copper explorer Kodiak Copper have multiplied in recent months on the back of a sharp rise in copper prices. The upward movement stopped at around CAD 3.30 last year. The share is currently available for CAD 1.96, and the Company is valued at CAD 93 million. Of course, the copper price has boosted the share of the Canadians, but in essence, it was positive project developments. And it proved once again that investors are well-advised to look at the companies' leaders and their success stories when tracking down successful investments. For Kodiak, we can only state: Chris Taylor has delivered again. Taylor has been internationally known since the gold discovery with Great Bear Resources. The stock multiplied from a few cents to over CAD 10 in just a few years. Taylor is chairman at Kodiak.

A huge copper discovery at the MPD gold project sent the shares soaring last year, and industry giant Teck Resources also bought into Kodiak, excited by the results. A fully funded 30,000m drill program has now been underway at MPD since March 2021, which should provide a steady flow of news in the near future. The MPD copper-gold porphyry project is located in southern British Columbia. However, investors should not forget Kodiak's Mohave copper-molybdenum-silver porphyry project in Arizona. This project is in close proximity to the world-class Bagdad mine, owned by Freeport-McMoRan.

XIAOMI CORPORATION - Number 3 in the global cell phone market, but there is still more to come

The Chinese Company has demonstrated impressive growth since its founding in 2010, which is likely to continue dynamically in light of recent reports. The Chinese electronics manufacturer is now one of the largest smartphone manufacturers in the world. A few days ago, it was reported that the technology group had been removed from the blacklist on which the Trump administration had placed several companies from the People's Republic. The US accused these companies of proximity to the Chinese military and intelligence services. This assessment has now been overturned by a US court, which means that holding, buying and selling Xiaomi shares is once again permitted for US citizens.

The recently presented quarterly figures are impressive. Xiaomi is still the No. 3 Company in the world, behind the likes of Apple and Samsung. But Xiaomi is more than just a phone maker. To be successful internationally as a technology company, it often makes business and economic sense to offer an entire "ecosystem" to customers. For customers, this brings the advantage of "usability," i.e. devices and software can "communicate" with each other more easily. For the Group, it increases customer loyalty and cross-selling enormously. It is not without reason that Xiaomi has made customer satisfaction its top priority. Thus, hardware (e.g. notebooks) or other devices (e.g. smartwatches) also play a significant role, which are connected by their Internet of Things (IoT) platform. The smart home sector is also a growth area for Xiaomi. The Company operates the world's leading consumer AIoT (AI+IoT) platform with 351.1 million smart devices connected to its platform - this does not even include smartphones and laptops! The term AI stands for Artificial Intelligence or artificial intelligence. Part of AI is also that a software or system learns to predict future decisions based on past decisions.

In the first quarter of 2021, both total revenue and adjusted net income reached record levels. The AIoT platform enables rapid and global scaling. Overall, consolidated revenue increased 55% to USD 75 billion. Net income grew about three times as fast, up 164% to approximately USD 950 million. The data came in above analysts' estimates, leading to some upgrades to the stock. Currently, the Company is valued at HKD 28.60 per share, with a market capitalization of USD 92 billion. This is just about 1.5 times expected 2022 sales. The 2022 P/E ratio of 25 is also not too high for the Company, given its future prospects. The Chinese still have many plans: in March 2021, the Group announced its entry into the smart electric vehicle business. At the moment, 35 analysts are following the stock and, on average, give the share a potential of around 13%. Since the quarterly data publication was only a few days ago, investors are using the time to buy until the analysts' upgrades or new buy ratings arrive.


Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

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.


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18. June 2021 | 12:33 CET | by Armin Schulz

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  • Copper

The hype around wood lasted until May 25, after which the rally ended and the price consolidated by a whopping 40%. Gold was trading above USD 1,900 last week. In parallel to this article's writing, the price is below USD 1,800. A minus of about 5.5% within five days, and the industrial metal for electrification and copper, dropped by 8%. Currently, all factors speak for a further increase in commodity prices. Real interest rates are still negative, and inflation should also remain high. The Fed could not help calm the markets, although interest rate hikes were not announced until 2023. However, the Fed intends to continue its bond purchases. Consolidation can always occur after strong increases, and so we will see long-term rising commodity prices, especially for precious metals and copper.

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NIO, JinkoSolar, Siemens Energy, Nevada Copper - This is the copper sensation!

  • Copper

The copper shortage continues as demand is continuously increasing. The current slightly weakening copper price should not hide the general state of the market. Resources are scarce, procurement markets are depleted, and demand remains at a high level. Current trends in the economy are further exacerbating this situation. Modern electric vehicles use about three to four times as much copper as a conventional internal combustion vehicle. It should not be forgotten that the construction of the charging infrastructure also requires significant amounts of copper. New mines are not currently in sight, but there is news from Nevada.

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BYD, Nordex, Kodiak Copper: The green revolution!

  • Copper

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