Close menu




March 29th, 2023 | 08:30 CEST

Copper massively missing - what to do? Nordex, Orestone Mining, JinkoSolar - Greentech shares in the focus of investors

  • Mining
  • Copper
  • Gold
  • GreenTech
  • Technology
Photo credits: pixabay.com

The energy transition in Europe can only work if critical metals such as copper, lithium or nickel remain available. For an almost complete electrification of road traffic from 2035 onwards, quantities of copper 3 to 7 times the current consumption are required. At present, however, hardly any new mines are coming on stream. It will therefore be exciting to see which copper source the EU will soon tap in order to supply industrial sites with the coveted metal. So the EU Council of Experts should urgently look for a few mining consultants and have the current decisions verified by the Fairy Tale Department. How do we manage it after all?

time to read: 3 minutes | Author: André Will-Laudien
ISIN: NORDEX SE O.N. | DE000A0D6554 , ORESTONE MINING CORP. | CA6861543032 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007

Table of contents:


    Ryan McDermott, CEO, Phoenix Copper
    "[...] If we pursue our goals conscientiously, the market will adjust its valuation accordingly, I am sure. Often, all it takes is a trigger. [...]" Ryan McDermott, CEO, Phoenix Copper

    Full interview

     

    Nordex - Now the recycling of dilapidated turbines begins

    Fossil energy supply is becoming more and more expensive. Therefore, various Greentech solutions for power generation are more in demand than ever. In particular, wind and solar power systems remain the focus of investment in the climate protection sector. The Hamburg-based company Nordex specializes in large wind turbines and energy parks. After three profit warnings in 2022, the share price crashed to below EUR 7 and then simply doubled. After a small consolidation, investors should now be vigilant again.

    The wind farmer is dealing pragmatically with the shortage of materials. For recycling reasons, the first of four wind turbines in Jacobsdorf, Brandenburg, was demolished. According to the Company, the demolition became necessary because the concrete towers had defects. New turbines are to be erected in the same place. The advantage: they no longer have to go through the approval loop for 8 years! The dismantling of the turbines is done in single steps to achieve a clean separation of the resources, but due to the heavy damage, the dilapidated tower was blown up. Now it would be interesting only to know whether the turbine was able to earn its historical face value. At the same time, preparations for the new building are already underway.

    Nordex had reported a significant loss for 2022. The forecast for 2023 will be presented at the end of this week on March 31. Due to the relatively high price of over EUR 12, the statements of the management should be waited for with confidence because, as the history from 2022 teaches, bad news can sometimes lead to discounts of over 20%.

    Orestone Mining - Copper and Gold from British Columbia

    There is a significant amount of copper in all green and high-tech products. In North America, the demand trend quickly translated into action, with some 750 new exploration concessions awarded in 2022. Orestone Mining (ORS) operates a 105 sq km copper-gold project called Captain in northern British Columbia. The project is 100% owned and hosts several large porphyry targets that have been explored by geophysical surveys and drilling. The prospective exploration area is located near the already-producing mines of IamGold and Centerra.

    Orestone Mining Corp. continues to refine the model for the gold-copper porphyry trend by compiling structural and geological data in combination with an airborne magnetics-based resistivity survey in 2023. Drilling planned for 2023 will target the system's core, with drilling planned to a depth of 1,000 metres. The planned surveys will continue to depth in the event that a gold-copper mineralized altered porphyry is encountered.

    The Orestone team has renowned experts with years of experience. In order to get started, a small financing of about CAD 1 million is still needed, which will be done if capital market conditions are good. Currently, the 56.7 million shares outstanding are valued at only CAD 1.7 million. Because of the low valuation, the leverage to rising copper or gold prices in ORS shares is very high.

    At this year's PDAC mining conference in Toronto, the International Investment Forum (ii-forum.com) had an exclusive interview with CEO David Hottman:

    JinkoSolar - The market does not react to the good figures

    Another Greentech stock is solar panel specialist JinkoSolar Holdings Co. Ltd., based in China. The Company is one of Europe's leading suppliers of solar technology and wafers. The manufacturer shipped over 46 gigawatts of modules, cells and wafers in 2022.

    Analysts had already anticipated a 105% increase in revenue to USD 12.1 billion, and this increase was primarily attributable to growth in solar modules. Overall, the 130-gigawatt mark in systems shipped was exceeded, but the net profit achieved was less than USD 100 million. Market estimates were much higher, and the stock initially took a dive. It was not the year of the manufacturers because, according to management, they had calculated the sales prices very early but were affected by strong increases in the price of preliminary products towards the end of the year.

    Analysts currently do not know how to value the Chinese market leader. This leads to a decent 50% gap between the proclaimed fair value of around USD 68.2 for the JinkoSolar share and the traded price of USD 48.7. The Refinitiv Eikon analysis platform shows a low consensus with a 2023 P/E ratio of around 7.3, so the stock is now cheaply valued again compared to the 2022 highs. Sales should increase by about 25% in 2023, and the margin should now also be more calculable after the experience from 2022.


    Greentech cannot do without strategic metals. Copper could become the big sticking point. Orestone Mining has copper and gold in its deposit, JinkoSolar and Nordex would then be potential buyers. All three stocks have their appeal in a risk-adjusted portfolio.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided 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 March 28th, 2024 | 09:00 CET

    Attention: Uranium despite the energy transition! Does this fit together? Plug Power, Nel ASA, Kraken Energy and Renk Group in focus

    • Mining
    • Uranium
    • Energy
    • renewableenergies
    • nuclear

    It feels like a paradox. The EU aims to be largely climate-neutral by 2050. The main focus is on mobility, heat and energy generation. As a core country of the EU, Germany is taking the political lead in the necessary measures. While France, Poland, Finland and the Czech Republic are actively expanding nuclear energy, this form of energy is virtually taboo in many other countries. Germany has been able to increase its renewable energy sources to over 50% with billions in subsidies at the expense of the taxpayer and the price of energy. Yet, Berlin still has to buy cheap electricity from abroad and also use coal and gas to stabilize the grid. It all sounds kind of crazy, but it gets really interesting when the wind isn't blowing and the sun is only to be found behind the clouds. Which shares should be considered in this mixed situation?

    Read

    Commented by Fabian Lorenz on March 28th, 2024 | 08:55 CET

    Shares on a high: Up to 300% with Canopy Growth, Super Micro Computer, Aspermont

    • Technology
    • Digitization
    • Cannabis

    Is the German cannabis market on the verge of a tenfold increase? The head of Canopy Growth thinks so. The Company wants to profit from the boom. Canopy shares have already benefited and more than doubled. What are the Company's plans here in Germany? Super Micro Computer shares have already multiplied, but analysts remain bullish. Growth is expected to remain high. Aspermont offers a hot turnaround story. The B2B media company for the raw materials industry has freed itself from legacy burdens and now aims to grow more strongly again. Analysts see a high free cash flow and 300% share price potential!

    Read

    Commented by Juliane Zielonka on March 28th, 2024 | 08:50 CET

    Rheinmetall, Almonty Industries, Bayer AG - Arming up for defense with these stocks

    • Mining
    • Tungsten
    • armaments
    • Pharma

    The European Union is providing the defense group Rheinmetall with a total of EUR 130 million for ammunition production. The German company is one of six EU projects that are being funded in a special program to stockpile enough artillery pieces and secure supply chains. Here, Almonty Industries comes into play. Almonty specializes in the exploration, extraction and production of tungsten in two European countries, including Spain and Portugal. Tungsten is used in particular for ammunition. Almonty Industries also operates five mining projects, one of which is the largest tungsten project in South Korea. The increasing demand for the critical metal will soon cause the price of tungsten to skyrocket, as defense is becoming increasingly important for the countries and continents involved in the face of geopolitical tensions worldwide. Defense is also a topic at Bayer. The cancer drug Nubeqa supports the body's immune system in the fight against prostate cancer. Following the recent pipeline flop with Asundexian, the drug has great blockbuster potential and could bring billions of euros into the Company's coffers. Read more about why this is so important for Bayer at the moment.

    Read