January 14th, 2021 | 17:34 CET
Geely, Nevada Copper, Xpeng - Invest in the future!
Table of contents:
"[...] 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
Boom accelerates demand
Politicians and the industry's decision to focus on electromobility in the future is placing an enormous burden on the raw material supply chain. The base metal copper is also affected. We encounter copper in many areas of life - in information and communications technology, electrical engineering, and renewable energies. According to studies by IDTechEx, the introduction of electric motors in vehicles will lead to a significant increase in copper demand. By 2030, more than 250,000 tons of copper per year will be used as part of the windings in electric motors.
Full speed ahead
It is not for nothing that the copper price is currently at a multi-year high. If professional market observers are to be believed, the metal is likely to double in the next few years. You can profit from the rising copper price by investing in promising mining projects. The Canadian copper producer Nevada Copper has recently attracted attention with good news. The Company, which has been active since 2007, is searching for metals in its own Pumpkin Hollow copper project in the US state of Nevada, not far from the headquarters of Tesla and Google. Pumpkin Hollow has significant reserves and resources, including copper, gold and silver. The Company's two fully-permitted projects include the high-grade deep mine and processing plant, which are now in production, and a sizeable open-pit project where progress has been made toward feasibility.
The cap is off
In the past, Nevada Copper's high debt-to-equity ratio has been the drag. Now the Company announced the successful completion of a capital increase. Due to enormous investor demand, the placement increased from the original CAD 21.5 million to CAD 33.0 million. The capital raised is to be used to repay outstanding liabilities and for the construction or expansion of the Company's Pumpkin Hollow underground mining project. Currently, the market capitalization of Nevada Copper, which is also traded in Germany, is just under EUR 185.0 million. A bet on the rising copper price.
The electric car market is in full swing. After Apple and Baidu threw their hats into the ring, the next marriage ceremony is taking place. The long-time Apple supplier Foxconn and the Chinese automaker Geely are entering into a partnership. The joint venture is to be split 50/50. Foxconn fills three positions on the five-member board, including the CEO post, while Geely provides two board members. The goals are quite ambitious. According to the announcement released by both companies, the joint venture is intended to "revolutionize the model of the automotive industry." The information and communications technology will be used to help automakers "accelerate the transition to new innovative and efficient manufacturing processes and business models based on CASE (Connected, Autonomous, Shared and Electrified)
Money from above
China has declared the expansion of electric automobility in the Middle Kingdom a top priority. To this end, exact infrastructure specifications have been drawn up in recent months. The electronics manufacturer Xpeng is now receiving working capital for this purpose. The three major banks, namely China Development Bank, Bank of China, and the Agricultural Development Bank, give the young Company a new credit line equivalent to almost EUR 1.62 billion. The new credit line will help Xpeng meet the high demand for electric vehicles. Due to the announcement, the shares of Xpeng climbed in double digits at times. However, in yesterday's session, they gave back half of the gains. Currently, the share price is quoted at USD 52.00.
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.
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.