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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".


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%"


06. April 2021 | 07:24 CET

BYD, Silkroad Nickel, Nornickel: Who will profit from the electric boom?

  • Nickel
Photo credits: thoughtco.com

Visionaries often stand alone at the beginning of their journey. When Tesla invited German journalists to test drives sometime around 2011, the "electric car" project was still a vision of the future. But already after this press event, something had changed in the public's consciousness. The incredible acceleration of the first Tesla Roadster put a smile on the faces of all test drivers. Even the biggest doubters were at least appeased and interested in what was still to come from Tesla. The rest is history. Today, companies like Volkswagen and Daimler are also emulating Elon Musk's visionaries. But for electromobility to become mainstream, it depends not only on innovative manufacturers of electric cars but also on the supply of raw materials. We present three companies.

time to read: 2 minutes by Nico Popp
ISIN: CNE100000296 , SGXE31916740 , US55315J1025


Jerre Foo, Corporate Development Executive, Silkroad Nickel
"[...] China has become the manufacturing capital of the World, and because of its infrastructure, expertise and capabilities, Silkroad Nickel has strategically positioned itself to partner with Chinese companies in the Stainless Steel and EV industries [...]" Jerre Foo, Corporate Development Executive, Silkroad Nickel

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: Why the share is no longer under power

Like Tesla, Chinese automaker BYD is an electric car pioneer. Around ten years ago, the Company focused on rechargeable batteries and later developed small vehicles, scooters and buses in cooperation with other companies. Today, BYD is considered a company that covers large parts of the value chain. In addition to buses, the car brand also offers taxis, an SUV and a sleek sedan. The batteries continue to come from BYD's production - and the Company has secured the raw materials for them all over the world for years.

While the supply of critical battery metals such as lithium, cobalt and nickel is only gradually being recognized in this country as a prerequisite for the mobility revolution, the Chinese have been taking a very strategic approach for many years to securing deposits. As early as 2016, the country launched an electric offensive and primarily addressed local public transport. As a result, the Chinese auto industry established contacts with suppliers early on and now has an advantage. BYD's stock has lost some ground in recent months. But after the electric hype of the past year, this is no wonder. The Company is well positioned and also wants to strike in Germany in 2021.

Silkroad Nickel: Profitable producer with good connections to China

When it comes to the sought-after strategic metals nickel and cobalt, the Indonesian Company Silkroad Nickel is a good address. Silkroad Nickel already has purchase contracts with Chinese industrial conglomerates. Silkroad Nickel supplies up to 900,000 tons of nickel ore annually to the two Chinese companies Tsingshan Holding Group and Hua Yue Nickel Cobalt. Indonesia has always been a sought-after producer of industrial metals, with 27% of the world's nickel supply coming from the country. A few years ago, the country decided that raw materials would have to be processed to generate more added value within the country. Silkroad Nickel has invested in logistics and has taken a share in cargo ships to ship its products to customers.

In the coming months and years, Silkroad intends to continue this strategy. As a next step, the Company wants to invest in the production of laterite ore. The material is a prerequisite for producing stainless steel and can also be a primary material for battery production. Ganfeng Lithium, the world's largest lithium compounds producer, wants to invest USD 30 million in Silkroad Nickel through a convertible bond to implement the plans. Due diligence is currently underway. As demand for nickel products is expected to rise sharply in the next few years due to the electrification of mobility, Silkroad Nickel could benefit as a producer with low costs and good connections to China.

Nornickel with numerous setbacks

The Russian Company Nornickel is also likely to benefit from the major trend. Although the name says it all at Nornickel, nickel is only the Company's second most important revenue source, accounting for 25% of sales. With 37%, palladium is the most important guarantor of sales. Copper is the third pillar, accounting for around 20% of sales. In 2020, an environmental scandal weighed on Nornickel's share price: large quantities of diesel leaked at a subsidiary.

In response to the wave of anger and Moscow's threats, Nornickel now wants to become greener and focus on new technologies. It is no secret that there is no way around sustainable production of industrial metals in the industry. Even smaller producers like Silkroad Nickel are aware of this. Nornickel, however, recently experienced another setback: two mines suffered water intrusion. The share is a typical cyclical stock and is also too big for surprises.


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:

15. June 2021 | 14:17 CET | by André Will-Laudien

NIO, Volkswagen, Toyota, Silkroad Nickel - Now it really starts!

  • Nickel

Armin Laschet (CDU), the CDU/CSU candidate for chancellor, does not want to give the internal combustion engine an expiration date, even though he himself drives an electric car. He also warns against focusing solely on the electric vehicle regarding climate protection in the transport sector. "I do not believe that this will be the form of mobility for the next 30 years, even though I drive an electric car myself," the CDU federal chairman told Handelsblatt. "There are ecological implications, for example, in battery production and the extraction of raw materials. We will still see many technological leaps." So in terms of e-mobility, the last word has not yet been spoken. Nevertheless, the industry is gearing up for a politically motivated wave of purchases. For this, it needs raw materials.

Read

11. June 2021 | 11:46 CET | by Stefan Feulner

BYD, Silkroad Nickel, Baumot - WallStreetBets: Enough is enough!

  • Nickel

Yesterday windeln.de and Adler Modemärkte, today Baumot and Nanogate. Every day, a new sow is driven through the village by the gambler community. There are no fundamental reasons for these stocks. The trend, which was started by the Reddit subcommunity WallStreetBets, is now spilling across the pond into Germany. There are companies, especially with regard to the energy transition, that have real potential due to their growth and profit prospects.

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01. June 2021 | 08:30 CET | by Nico Popp

HeidelbergCement, Silkroad Nickel, BYD: Shares with an explosive mix

  • Nickel

You do not have to be an economist or a well-connected investment guru to evaluate opportunities on the stock market. It is often the apparent developments and trends that point the market in the right direction. For investors, it is then a matter of interpreting these facts. For example, building materials are scarcer than ever - prices for wood and other essential materials have risen rapidly. Industrial metals are also in high demand. New technology, investment in construction and infrastructure, and the end of the pandemic make for an explosive mix.

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