Menu

Recent Interviews

Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


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".


07. July 2021 | 11:49 CET

BYD, QMines, Xpeng - Play the Trend

  • Copper
Photo credits: pixabay.com

In recent weeks, there have been shortages of many commodities and intermediate goods. The shutdown of production during the Corona pandemic led to supply shortages of lumber, semiconductors and chemicals. In contrast, demand for consumer goods rose sharply after the economy eased. The result was significantly increasing prices due to the shortage. In the long term, this phenomenon will also occur for metals needed for the energy transition. The first tendencies are already becoming apparent. Take advantage of the cycle!

time to read: 3 minutes by Stefan Feulner
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , QMines | AU0000141533 , XPeng Inc ADR | US98422D1054


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

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Copper - Hype or Supercycle?

Does the energy turnaround create a new supercycle in the industrial metal, or is the hype around the red metal exaggerated? Concerning climate protection and the decarbonization of the economy and transport, the answer is clear. The fact is no other material conducts electricity as well as copper. As a result, it plays a crucial role in achieving climate neutrality, whether in e-mobility, energy generation or digitization. Yet, there is already a shortage of copper - last year's shortage was around 560,000 tons.

However, the copper market is hardly prepared for such a boom in demand. A meager copper price and reluctance to approve new projects have slowed investment in future supply growth in recent years. It takes about 2 years to expand a copper mine. It is even estimated to take around 8 years to start a new copper project. As a result, the US investment bank JP Morgan expects an increasing supply gap and even a structural deficit in the copper market by 2025.

Bright prospects for QMines

Thus, golden times are coming for copper producers and explorers. QMines, listed on the Sydney Stock Exchange and in Frankfurt for a few weeks, is digging for gold and copper. With its flagship project, Mount Chalmers, the Australian Company is looking for the two metals on a 983 sqm property in Queensland around the ports of Gladstone and Brisbane. There are four projects in the portfolio at advanced stages of development, to which QMines has sole rights. Mount Chalmers is a historic mine that operated between 1898 and 1982, producing approximately 1.2 million tonnes of ore at a grade of 2%. Building on resource estimates, management anticipates 3.9 million tonnes at grades of 1.15% copper, 0.81 g/t gold and 8.4 g/t silver, up to 60,000m is expected to be drilled by early 2022.

First results impressive

The share price reacted to the publication of initial drill results with a share price firework as early as mid-May. In total, initial test drilling was carried out over just under 1,600m. This revealed maximum values of 13.4% copper, 6.11 g/t gold and 31 g/t silver. In addition, further drilling over 3,000m was started. Currently, the stock is trading back at EUR 0.22 after a short-term hype partly due to a weaker copper price. In the long term, QMines is an option on a rising copper price.

Strong sales figures

One of the primary consumers of copper is undoubtedly the electromobility sector. The study commissioned by the International Copper Association (ICA) shows that by 2030 more than 250,000 tons of copper per year will be used as part of the windings in electric traction motors in electric vehicles. Due to the rapidly growing sales figures, the demand is increasing enormously. Once again, Chinese automaker BYD shows this in its figures for June. The Company, which is financed by Warren Buffett, delivered 51,015 vehicles, compared with just 33,725 units in the same period last year. The New Energy Vehicles segment, which consists of hybrid and electric cars, continues to grow. Here, 41,336 units left the assembly lines. The figure was "only" 32,800 units in May, compared with just 14,165 in the same period last year.

The other Chinese electric car manufacturers were also able to shine with growing sales figures. Li Auto, for example, sold 7,713 units of its Li One model, an increase of 321% year-on-year. That put them just ahead of industry rival Xpeng, which managed 6,565 e-cars. Taking the silver spot behind BYD in June was NIO. A total of 8,083 electric SUVs were shipped in June in fiscal 2021, an increase of 116.1% compared to the same period last year.


Without a doubt, the future belongs to electric mobility. The replacement of the combustion engine by the battery-powered vehicle is in full swing. BYD is undoubtedly one of the most promising companies in the industry. Due to the increasing demand for renewable energies, the copper price should continue to trend north. In addition to copper producers, exploration companies such as QMines will also profit from this.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

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:

14. October 2021 | 13:55 CET | by André Will-Laudien

Varta, Standard Lithium, Sierra Grande Minerals, Nordex - The next hype rolls in!

  • Copper

In Germany, politics is becoming significantly greener! But what do the mobility concepts of the climate protectors look like? In addition to the publicly demanded reduction of unnecessary business flights, the bicycle would also be an alternative for 30-kilometer journeys. Fossil energy has already become 50% more expensive in 2021, and gas prices are going through the roof. There is still a high demand for energy in Germany because we are currently buying cheap nuclear power abroad. This is how it can go when a botched energy policy is associated with climate protection goals. No matter how things go, the world needs copper for modern technologies, and this raw material, along with lithium and other critical metals, is just terribly scarce. How are the typical industry players doing?

Read

04. October 2021 | 10:06 CET | by Nico Popp

NEL, GSP Resource, China Evergrande: How to find the doublers

  • Copper

Speculative investments are the salt in the soup on the stock market. Of course, those who rely on ETFs and funds over the long term via a savings plan can already do a lot better than the vast majority of savers. However, those who develop a good knack for speculative individual stocks can give their portfolio a growth kick. Even if many newcomers to the stock market can hardly believe it: 100% and more is possible. Using three stocks as examples, we explain what is important and what is not a good prerequisite for investment.

Read

28. September 2021 | 14:06 CET | by André Will-Laudien

BYD, Fisker, Kodiak Copper, Varta: Nothing works without Copper!

  • Copper

Electromobility is becoming increasingly crucial for the energy transition in transportation. And with it the research, development and production of drives, batteries and components. In addition to electricity storage, however, vehicle cabling and the assembly of e-components are also coming to the fore. Today, an electric vehicle requires three to four times the amount of copper as it did 20 years ago, plus the demand in industrial manufacturing processes. The earth's deposits are exhaustible, and copper, in particular, is pretty much on the edge. A spot price of just under USD 10,000 per kilo clearly shows how the markets are processing this situation. Rising prices!

Read