Close menu




July 29th, 2021 | 11:08 CEST

JinkoSolar, Carnavale Resources, BASF - Beware of shortages!

  • Commodities
Photo credits: pixabay.com

The change from fossil fuels to renewable energy sources due to climate change means that raw materials such as copper, lithium and nickel are increasingly in demand. The increasing demand due to new economic sectors such as wind power, electromobility or photovoltaics is offset by an extremely scarce supply. The result is sharply rising prices and an expected shortage in the coming years. In addition, the trade conflict with China is visibly worsening the shortage. The primary beneficiaries of this dilemma are commodity producers who can at least partially cover the supply deficit outside the Middle Kingdom.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , CARNAVALE RESOURCES LTD | AU000000CAV5 , BASF SE NA O.N. | DE000BASF111

Table of contents:


    Carnavale Resources - Strategically positioned

    Fears of rising inflation and shortages of metals such as copper and nickel are currently two of the most discussed topics in the markets. Due to the broad diversification, solutions to the discussed problems can be found in the portfolio of the junior explorer Carnavale Resources. The Australians are focused on acquiring and exploring high-quality early-stage exploration and development projects with prospects in gold, nickel, platinum, copper and strategic minerals related to the electric battery sector, including other new technologies.

    In total, Carnavale Resources has 4 option agreements on projects in Western Australia. The advantage of options is that little capital investment is required. It allows the experienced management to explore the properties with a time limit and only take the option to buy if the results are promising.

    You can read the full interview with Carnavale Resources CEO Humphrey Hale here.

    At the most advanced project, the Kookynie Gold Project, the agreement to acquire 80% interest in the deposit has now been drawn. A cash consideration of AUD 250,000, approximately EUR 155,000, was paid to Western Resources on exercise, and 50 million shares were also issued. Following the development of new high-grade gold zones at the Kooknyie Gold Project, the Australians plan to further explore the property with Reverse Circulation drilling to unlock the high-grade gold potential at depth.

    Promising results already came to light in the middle of the month. The third round of drilling included 135 holes totaling 7,432m and was aimed at exploring the potential of the Champion South deposit and following up on the strong gold anomalies identified in the first two rounds of aircore drilling. Here, a high-grade mineralized zone was discovered over 550m at McTavish East, with peak grades of up to 32.5g/t gold from 18m and remains open to the north. Drilling also increased the size of the mineralized zones.

    In addition to the second gold project, Ora Banda, where the first soil samples were taken to test for gold anomalies, Carnavale Resources also has two prospective projects. Namely, the Grey Dam nickel project and Barracuda, which hosts nickel, copper and platinum group metals, to help supply the electric vehicle industry in the future. The Australian exploration company is strategically well-positioned with all four projects in the early stages. Significant increases in value are possible here, but this is also where the greatest risk of default lies. For speculative investors, the current level offers attractive entry opportunities. The stock market value of the share, which is also traded in Frankfurt, is only EUR 10.42 million. However, do not forget to set limits when buying.

    BASF - Forecasts confirmed

    About 14 days ago already, the chemical Company BASF increased its forecasts. These were now confirmed in the figures for the second quarter. The Ludwigshafen-based Company benefited from significantly higher earnings in its upstream basic chemicals businesses. The Materials segment alone grew by 91% compared with the same period last year, while the Chemicals division grew by 75%. Overall, adjusted EBIT increased tenfold to EUR 2.35 billion, while sales rose 56% to EUR 19.8 billion.

    Earnings per share were EUR 2.03, well above the analysts' consensus estimate of EUR 1.78. The Chemicals segment is now expected to achieve full-year sales of EUR 2.35 billion. For the full year, sales are now expected to climb to between EUR 74 billion and EUR 77 billion, while adjusted EBIT should be in a range between EUR 7.0 billion and EUR 7.5 billion, according to the latest estimate. Despite the positive figures, BASF lost around 1% in value in the course of trading. According to stock market participants, the figures, which had already been raised recently, were already included in the prices.

    JinkoSolar - China pushes

    A win in court and patent dispute with photovoltaic Company Hanwha Q Cells averted, but fear of further regulation by the Chinese government weighs on the share price of JinkoSolar. Even though the Company should be one of the winners in the photovoltaic segment in the long term, it is on red alert in the short term. After a daily loss of more than 15%, the share price touched the critical support level at USD 45 but was able to defend it for the time being. A break would lead to further price losses in the direction of the USD 40 mark. Due to uncertainties about further rule changes from the Chinese authorities, one should refrain from an engagement at the moment.


    Inflation and the scarcity of raw materials needed for the energy transition are two of the most important issues shaping the picture on global markets. Carnavale Resources is well-positioned for the future with its portfolio. BASF and JinkoSolar are also well-positioned for the future. At JinkoSolar, however, there is currently uncertainty about further regulation by the Chinese regulatory authorities.


    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by André Will-Laudien on June 12th, 2024 | 07:15 CEST

    After the election, buy a combustion engine now? Mercedes-Benz, Volkswagen, Globex Mining and BYD on the test track

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • Batteries

    The crushing defeat of the green camp in the EU elections has caused a stir in the automotive industry. Will the ban on combustion engines be overturned in favour of a general openness to technology? It is well known that the best conventional vehicles come from Germany, and they are demonstrably no more harmful to the climate than current e-vehicles. Voters have finally lifted the green veil, and the doctrine of the know-it-alls is now in retreat. From a climate perspective, investing in battery storage systems makes sense, but they do not necessarily have to be installed in vehicles. How can investors benefit from the current situation?

    Read

    Commented by Juliane Zielonka on May 31st, 2024 | 07:00 CEST

    Globex Mining, Samsung Electronics, BYD: Commodity rally and innovations from Asia

    • Mining
    • Commodities
    • Gold
    • Electromobility
    • Innovations

    Increasing demand for generative AI, consumer electronics, and innovations in the automotive industry are significantly boosting demand for raw materials. These are golden times for explorers like Globex Mining. The Canadian company has such a broad-based commodities portfolio that it can be seen as a minerals land bank. For investors, this means reduced risk thanks to high diversification. Samsung Electronics is currently facing several challenges. Not only have they been overtaken by NVIDIA in chip production, but the workforce is also becoming restless. In South Korea, this would be the very first strike in the Company's history. Although the brand value is highly regarded globally, things seem to be quite off-kilter in Suwon. Innovations are produced in Asia. Car manufacturers such as BYD, Geely and Toyota are focusing on the next evolutionary stage in the development of electromobility. The EU, on the other hand, appears helpless and is trying to undermine competition with punitive tariffs. Will they succeed?

    Read

    Commented by Armin Schulz on May 21st, 2024 | 07:15 CEST

    K+S, Globex Mining, Barrick Gold - Commodity stocks: Make money now

    • Mining
    • Gold
    • Commodities
    • fertilizer

    The commodities market in 2024 is characterized by high volatility, driven by strong demand, supply bottlenecks, and technological shifts to renewable energy, which make lithium and copper, for example, more expensive. In addition, inflation concerns make precious metals attractive as a hedge against inflation, while the central banks' interest rate policy is also a factor. Geopolitical tensions further disrupt supply chains and drive up prices. In this context, investments in commodity shares are becoming increasingly important. This form of investment allows investors to benefit indirectly from price fluctuations and the increase in the value of commodities without having to physically invest in the commodities themselves. We are, therefore, looking at three commodity companies today and analyzing their potential.

    Read