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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


19. May 2021 | 11:00 CET

BYD, NIO, Nordex, Sierra Growth - Copper soon at USD 20,000?

  • Copper
Photo credits: pixabay.com

The meaningfulness of global efforts to curb global warming becomes all the more transparent when one considers the devastating destruction caused by cyclone "Tauktae" in the Indian state of Gujarat. Something has to be done! German industry is attempting decarbonization through various green technologies, aiming to halve greenhouse gas emissions by 2045. Copper is an essential component of electrification; since early 2021, there has been a run on the metal and its suppliers.

time to read: 4 minutes by André Will-Laudien


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

André Will-Laudien

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.

About the author


BYD - The strong hand of Warren Buffett

One of the largest copper processors is BYD ("Build Your Dreams"), a battery and vehicle manufacturer based in China. For many years, Warren Buffet has been involved in the Company, and now it has become one of the significant green investments of the fund manager from Omaha.
At the end of 2020, the investment company owned a full 8.25% of BYD. We don't know if that will still be the case after the share price drops in 2021. Confusingly, one also finds information that Buffett holds around 15% of the shares. But this refers exclusively to the H-shares listed in Hong Kong.

Strictly speaking, it was not Warren Buffet but his partner Charlie Munger, responsible for the investment. The Chinese conglomerate BYD tells a remarkable growth story in the 25 years of its existence. Thirteen years ago, Charlie Munger convinced his partner Buffett to invest in the relatively unknown Chinese automotive Company. Munger believed in the Company's management, especially its go-getter Wang Chuan-Fu.

BYD's stock has seen better times, and the price now has to recapture the EUR 20 mark in chart terms before it can move up again. It should also not fall below the stop of EUR 15; otherwise, trouble looms.

NIO - Ahead of Tesla in China for the first time

This news reads well: NIO captured a 23% share of the Chinese all-electric SUV market for the first time in April, ahead of Tesla at 17%. In numbers, NIO recorded a total of 7,404 SUV sales in April - with the ES6 model selling the most at 3,302 vehicles, EC6 sales at 2,484 units and ES8 sales at 1,618 units.

The sales figures are significantly affected by the semiconductor shortage. NIO had already warned at its annual press conference that the shortage could impact sales in the second quarter. NIO has had to suspend production at its Hefei facility for five working days starting March 29. More forced shutdowns could follow.

The share fell below the EUR 30 mark with the figures and is now stuck there. As a consolation, competitor Tesla has lost almost 20% of its share price in May.

Nordex - Red figures again for the first quarter

Another representative of the green revolution is turbine manufacturer Nordex. It slipped even deeper into the red in the first quarter than a year ago. The bottom line was a loss of just under EUR 55 million after minus EUR 38 million. However, Nordex increased sales significantly thanks to good business, and the outlook was therefore also confirmed. Revenues are expected to rise further to EUR 4.7 to 5.2 billion in 2021. The EBITDA margin is forecast at 4.0 to 5.5%, at least double that of the previous year.

CEO José Luis Blanco had already warned at the end of March that he still expected a weak first quarter. The efficiency of Nordex's business processes continues to be impaired because of the pandemic. Then, in the first quarter, it was also burdened to a greater extent with lower-margin legacy projects. The wind power industry has been suffering for some time now from high competition and corresponding price pressure. In Europe, there are now more than ten major suppliers able to implement large-scale wind projects.

The current fear of inflation and interest rates weighs heavily on the minds of investors. Businesses in need of capital, such as wind turbine manufacturers, are particularly sensitive here as the project durations are correspondingly long. Nordex stock has lost 35% since the beginning of April. We do not see this as an entry-level yet, given the less than encouraging figures.

Sierra Growth Corp. - In addition to copper, there is gold and silver

Sierra Growth is a junior exploration company engaged in acquiring, exploring, and developing early-stage mineral projects and currently operating projects in Nevada. The primary sectors the Company is focused on are silver, copper, gold and molybdenum. The areas promise a good prospect for copper, which is so scarce that it could surpass the USD 10,000 mark in May 2021. Now the gold and silver prices follow upwards, so the portfolio of Sierra Growth becomes interesting.

At the moment, the focus is still clearly on the 3 properties in Nevada. All the infrastructure is already historically in place here, and the properties are excellent to manage both legally and geologically. The Company has only raised a small amount of money and would like to use these funds efficiently.

The last prospecting tests in April also produced the first hits. In the mine area of the Mildred concession, 26.6 g/t gold and 78.6 g/t silver were detected, and at another location, 667 g/t silver and 0.41 g/t gold. The nearby Betty East area may provide similarly good values. Over the next few months, these initial discoveries will be validated and converted into a resource estimate. However, this will require some drilling for confirmation.

Sierra Growth shares have been trading around EUR 0.11-0.13 in Frankfurt for a month, and trading volumes are still very low. In return, you get a well-positioned explorer with a capitalization of around CAD 10 million - in the current environment, things can go up very quickly.


Author

André Will-Laudien

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.

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:

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

Kodiak Copper, Deutsche Telekom, Varta - What is going on in commodities?

  • 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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09. June 2021 | 10:55 CET | by André Will-Laudien

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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09. June 2021 | 10:41 CET | by André Will-Laudien

BYD, Nordex, Kodiak Copper: The green revolution!

  • Copper

They have not yet been seen in the state elections of Saxony-Anhalt! However, the political green wave in Germany is starting to warm up for the federal election. Consumers expect greater awareness of the Paris Climate Agreement with corresponding measures in our country, especially in Europe. Already today, this is getting investors to focus correctly on the issues of the future. In plain language, this means continued tax incentives of the highest magnitude for so-called "environmentally friendly technologies" that include solar plants and wind power, including, above all, battery-powered mobility and hybrid vehicles. We shed light on some of the favorite stocks.

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