Close menu




September 8th, 2021 | 11:33 CEST

BYD, Teck Resources, GSP Resource, Varta - Commodity rally three point zero!

  • Commodities
Photo credits: pixabay.com

There is a growing concern in the German economy that rapidly rising raw material prices will jeopardize the upswing in the future. Thus, the head of the Munich-based economic research institute Ifo, Clemens Fuest, warns: "If commodity prices continue to rise significantly across the board in the coming years, this could become a problem." He is referring to the upswing because supply chains are already severely disrupted by the pandemic. The temporary failure of the Suez Canal has even led to a delay of several months in the delivery of high-tech products.

time to read: 3 minutes | Author: André Will-Laudien
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , TECK RESOURCES LTD. A | CA8787423034 , GSP RESOURCE CORP. | CA36249G1090 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    BYD - The demand for copper is huge

    Things get problematic when tight supply and protectionist measures trigger further price increases. The economic power blocs USA, China and Europe, are politically challenged to create reliable framework conditions for the industry.

    In China, in particular, the price increase of copper is being watched with a wary eye; after all, the country is the largest importer of industrial metal. In 2020, a record import was reported, as the signs pointed to economic recovery faster than in other parts of the world. Due to the import pull from the Middle Kingdom, prices remain permanently high.

    A major customer for copper and high-tech metals is the technology conglomerate BYD, which builds electric vehicles and produces its own batteries. Since the pandemic outbreak, BYD has been a perennial favorite on the stock market, gaining a full 500%. Currently, the price is trying again to reach its all-time high at EUR 30.65. In case of a decline, watch out for the chart support line at around EUR 27.

    Teck Resources - A reliable supplier of the red metal

    A well-known producer of high-tech metals is also the North American Teck Resources. The Company mines copper, zinc, coal as well as energy raw materials. The latter has fallen out of focus somewhat in the global climate debate, but they are still needed for industrial purposes. More than 50% of the worldwide energy mix still consists of fossil fuels. Copper and zinc are in exceptionally high demand for industrial purposes. Technology for the generation of renewable energies, electrical components and electricity storage systems rely on the availability of industrial metals. Teck shares have consolidated by around 25% in the last 4 months but are heading upwards again. With a P/E ratio of 9.5 and a price-to-sales ratio of 1.5, the stock is analytically cheap.

    GSP Resource - A promising neighbor of Teck Resources

    GSP Resource Corp. is a direct neighbor of Teck Resources with its Alwin Mine Project. The explorer specializes in properties in southwestern British Columbia. The Company holds an option to acquire the entire Alwin rights, a claim for mining copper, gold and silver, located in the Kamloops Mining Division, 18 km west of Logan Lake. GSP also owns 100% of the Olivine Mountain Project, located approximately 600 kilometers away in the Tulameen Complex.

    Adjacent to GSP in Highland Valley is Teck Resources' active mine. Historical exploration indicates that the deposits at Teck's mine also extend into the GSP Resource area. GSP drilled high grades of 0.31% copper equivalent over a distance of 61.7m in 2020, and at the Highland Valley mine next door, the ore grade in 2019 was around 0.28%. These values are at industrially interesting levels.

    With a current placement at CAD 0.35, the Company raised about CAD 450,000, which will fund the subsequent drilling. The still low capitalization of only CAD 6 million should soon attract larger interested parties who are still looking to expand their copper resource.

    Varta - Doubts about the right product mix

    Due to the strong increase in Varta's share price, investors wonder when the recently started car battery production will deliver the first results. Does Varta's current product mix still fit the Company's high valuation?

    A new study by the private bank Metzler could raise doubts about continuing the strong growth. In its initial rating, the analysis sets a price target of only EUR 106 for the papers of the battery manufacturer and thus considers a slide of more than 20% possible. Metzler already sees a fading growth story, as a negative price trend and an unfavorable product mix stand in the way of further growth. With increasing competition, the analysts expect average prices to fall. Heavy dependence on significant customers such as Apple and Samsung could also weigh, as 85% of 2020 sales were generated with small lithium-ion batteries. The Metzler vote is "sell."

    For Varta to leap into the modern era, automotive battery sales will have to skyrocket quickly to 30-40% of group output - but that is unlikely to be the case until 2024. In our opinion, the share is, therefore, still very susceptible to major sell-offs.


    The demand for high-tech metals drives prices on the spot markets and ensures maximum production in the mines. Some manufacturers have to pay high premiums to remain able to supply the market. That will create pressure on margins because the consumer does not go along with every price adjustment. Mine operators and explorers like Teck or GSP Resource have good cards in this environment.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    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



    Related comments:

    Commented by André Will-Laudien on October 22nd, 2025 | 07:35 CEST

    Gold and silver – New record highs! Keep an eye on Barrick, Agnico Eagle, Desert Gold, and First Majestic!

    • Mining
    • Gold
    • Silver
    • Commodities

    Silver prices broke through the USD 53 mark for the first time at the beginning of the week, and gold is attempting to reach the USD 4,300 mark. Precious metal enthusiasts have been anticipating these moves for a long time, but traders on the futures exchanges clearly have not. In addition to extreme physical scarcity, the exploding prices are also attributed to heavy short squeezes. The physical silver market is under tremendous pressure as the availability of real metal to hedge the numerous futures transactions is severely limited. This imbalance is causing erratic market reactions and driving the spot price into an almost exponential sell-off. The current rally in precious metals is driven by geopolitical uncertainty, industrial demand factors, and the search for safe investments. In times of excessive government debt, the weakness of the US dollar is now also weighing on the market. Which companies should investors keep a close eye on now?

    Read

    Commented by Fabian Lorenz on October 22nd, 2025 | 07:30 CEST

    SHARE PRICE EXPLOSION for commodity gems!? Nordex, Aurubis, Salzgitter, and Power Metallic Mines!

    • Mining
    • Lithium
    • Copper
    • Commodities
    • Steel
    • Wind
    • renewableenergies

    Shares in the commodities and precious metals sector have been unstoppable in recent weeks. Power Metallic Mines could soon become an explosive latecomer to the rally. There are good reasons for this, as the CEO recently made clear. At Aurubis, the rally appears to be over for now. Analysts are skeptical, and the major shareholder is cashing in his shares - albeit in an unusual way. So should you sell now, too? The past few months have been unusually positive for Nordex. There is currently no sign of a slump in the wind business. What are analysts saying after the latest order intake?

    Read

    Commented by Armin Schulz on October 21st, 2025 | 07:15 CEST

    Barrick Mining and Kobo Resources: Gold as security – Occidental Petroleum: Energy as opportunity

    • Mining
    • Gold
    • Commodities
    • Oil
    • Gas
    • Energy

    In an era of geopolitical upheaval and monetary policy experimentation, tangible assets are gaining strategic importance. Gold remains a fundamental store of value, while the transformation of the energy sector is driving demand for critical raw materials. Even oil, despite volatile prices, retains its status as a geopolitical lever. In this environment, companies with access to these resources are well-positioned. Three players are in focus: the gold producer Barrick Mining, the exploration specialist Kobo Resources, and the oil and gas company Occidental Petroleum.

    Read