December 15th, 2021 | 12:30 CET
Infineon, Nevada Copper, Nvidia - The high-tech industry in the copper trap!
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"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources
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.
Nevada Copper - Things are looking up at Pumpkin Hollow
Nevada Copper is a Canadian copper producer and owner of the Pumpkin Hollow copper project in Nevada. Pumpkin Hollow has significant reserves and resources primarily in copper, gold and silver. The two fully-permitted projects include a high-grade underground mine and associated processing plant, which are now in production. Furthermore, management is completing a mega open pit project that is moving towards a feasibility study with new drilling in 2022.
Nevada Copper today provided an operational update and overview of milestones achieved at the Pumpkin Hollow underground mine in the second half of 2021. The Company worked hard to accelerate the operational ramp-up and the mining rate. Management systems were completely rebuilt in the second half of 2021 and are now operating very efficiently. Productivity increased 31% between October and November, from 1.75 to 2.29 feet per person shift, resulting in significant improvements in operational efficiency and cost reductions. By December, development rates were 50% higher than in August. The mill operation has delivered a 90% yield throughout 2021, with batch processing reaching the 4,700 tons per day mark. All underground ventilation infrastructure was completed by summer.
In November 2021, the Company completed a CAD 125 million public share offering, with a significant portion of the funds provided by select mining sector companies and institutional investors. Long-term debt will be reduced by approximately 30% in the current Q4 2021. Energy supply is also expected to shift to sustainable operations, as Pumpkin Hollow has sufficient sun and land to implement a large solar project. It could reduce Scope 1 carbon emissions by about 10% of estimated total emissions over the life of the mine. The Company news is reading well right now.
Nevada Copper's stock has lost some ground after the hefty capital raise. After the rollback in the summer, the share now stands at CAD 0.56. That corresponds to a market capitalization of CAD 250 million. An entry at this level should already pay off next year.
Infineon - The national ID card for Vietnam
The COVID pandemic has put a lot of pressure on international chip manufacturers and high-tech operations. Infineon recently even had to slightly lower its sales forecast because the shortage of raw materials leads to production bottlenecks. However, the order situation remains sound. The German chipmaker has signed a collaboration with MK Group to produce electronic ID cards with special functions in Vietnam.
These new super ID cards have special security chips that make a fully electronic ID card possible and will be used in the future to identify citizens in Vietnam. The government is introducing these ID cards to provide online government services. The aim is to avoid long waiting times and queues at government offices in the future. Security chips and a new operating system will ensure that the electronic ID card with its biometric data and digital signatures is better protected. Users will also use this card for authentication at public authorities and banks. Infineon is supplying the corresponding semiconductors and security controllers based on 40-nm security chip technology.
Major Swiss bank UBS recently raised its price target for Infineon from EUR 45 to 49 and left its rating at "buy." "Looking ahead to 2022, the semiconductor group's stock remains a preferred sector stock," wrote analyst Francois-Xavier Bouvignies. However, concerns about future growth are spreading, as Infineon shares have not risen since November. Chart-wise, investors should therefore stop stocks at EUR 39.50, as a drop below the late summer breakout line at around EUR 37.50 is imminent.
Nvidia - With special AI for digitization and augmented reality
Nvidia is an endurance runner when it comes to digitalization and artificial intelligence. Digitalization is joined by the enormous development field of the "Metaverse". For those who have not yet dealt with it: By definition, this refers to a collective virtual space created by the convergence of virtually augmented physical reality and physically persistent virtual space. A classic example of the first kind of "metaverse" is creating an artificial world in which one can customize one's avatar and move around freely, as illustrated very well in the game "Roblox". The second type is called augmented reality. Here, the actual reality is extended by additional knowledge.
High computing power is needed for the aforementioned "Metaverse" because huge digital worlds are created there, and that is where Nvidia comes in with its products. The Company's high-performance GPUs and CPUs are in broad demand, especially in combination with the high investments of Microsoft, Amazon and Alphabet in the new virtual worlds.
The protagonists in the race for this huge market are Facebook or Meta, Epic, Roblox and Microsoft. Nvidia's stock last soared to nearly USD 900, then split 1-for-3. In terms of market capitalization, it now weighs in at just under USD 700 billion. The chart is now interesting after the first 15% correction because the next holding line can only be seen at around USD 228. Nvidia is, therefore, only worth a long speculation in the very long term.
High-tech industries need copper. However, it is scarce and expensive. For Infineon and Nvidia, the technical trend is already battered, and the uptrends could turn in the very short term. Nevada Copper offers a long-term opportunity as a new copper player in the commodity market.
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