04. August 2020 | 07:13 CET
dynaCERT, McPhy, SolGold - the right shares for the future
Scalability is usually a key feature for success stories. As soon as the preliminary work or development is completed, the money-making process begins. Patents can also be equivalent to a license to print money. In addition to the technology industry, the description also applies to the natural resources industry. In the future, anyone sitting on gold and copper will have the crucial metals to protect assets and to implement the electrification of everyday life. There are even companies that hold projects with gold and copper deposits.
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ISIN: FR0011742329 , CA26780A1084 , GB00B0WD0R35
Equipped with gold, silver and copper
SolGold is a prime example of a commodity company that is almost certainly going to be taken over or make a lot of money in the coming years. SolGold has explored 10% of the world's newly discovered gold in the last ten years alone. In addition, management believes that the company is well positioned with its explored copper deposits in Ecuador. In other words, the company is sitting on several great treasures.
The market value is currently still trading well below the billion dollar mark, although SolGold already holds 13 promising projects. To date the company has defined a copper-gold deposit of 21.7 million ounces of gold, 9.9 million tonnes of copper and 92.2 million ounces of silver on the Alpala project. Based on published studies to date, Alpala's average NPV is USD 4.4 billion, after capital development costs of USD 2.7 billion, an IRR of 25.9% and a payback period of 4 years. The mine life is projected to be 55 years. Against this background, the company is an excellent acquisition target for a large producer who wants to build something in Ecuador and not start from scratch.
Retrofit and protect the environment
dynaCERT is a technology company that uses hydrogen as a catalyst in diesel engines. Due to the demand-oriented production of hydrogen on board there is no storage risk and the inert gas is added to the combustion in the engine via the air supply. The company owns several patents and, after a corona-induced closure of the production facilities, is now beginning to assemble equipment again that has been developed for retrofitting diesel engines of all kinds.
However, during the recent general governmental production stop, the company reported that it was working on product development and modifications. dynaCERT was able to manage the corona lock-down phase well with a cash balance of CAD 18 million. Users of dynaCERT's HydraGEN units can prevent up to 88% NOx emissions. In addition, particulate matter emissions can be reduced by up to 55%. Depending on the engine and driving style, fuel consumption can be reduced by up to 19% - which also leads to a corresponding reduction in CO2 emissions. The market value of dynaCERT is currently around EUR 150 million, 50% less than about six months ago - before the Corona Pandemic.
France produces hydrogen with nuclear power
McPhy is a French plant engineering company that focuses on the production of hydrogen and the refuelling of vehicles. The company will benefit from the hydrogen boom in the European Union in the coming months and years. State subsidies will provide incentives for the development of a hydrogen infrastructure. A nationwide network of filling stations is necessary to keep the barriers to market entry for vehicles with fuel cells as low as possible. The company currently has a market capitalization of around EUR 400 million.
While the energy mix in France consists of 71% nuclear power and 11% renewable energy, the additional energy needed to produce hydrogen will be met by nuclear power without CO2 emissions. In Germany, on the other hand, nuclear power will be switched off and only 45% of the energy mix will be from renewable energy sources. In other words, any additional electricity needed to produce hydrogen will come from burning coal. Against this background, introducing hydrogen into mobility in France makes much more sense for environmental reasons than in Germany. With the abandonment of nuclear energy, the German government has abandoned an energy source without CO2 emissions and has led the energy transition in mobility into a dead end.