Close menu




November 10th, 2022 | 11:12 CET

Kodiak Copper, BYD, SolarEdge Technologies - Copper driving the energy transition

  • Mining
  • Copper
  • Electromobility
Photo credits: unsplash.com

Goldman Sachs forecasts a gap of copper on the world market equivalent to about 8 million tons. The reason for the shortage is the high demand due to electrification in the areas of mobility, energy supply and renewable energies. Companies such as BYD and SolarEdge, pioneers of the energy transition, use vast quantities of the coveted metal in their technical solutions. In the last 10 years, the raw materials market has focused on other metals. Kodiak Copper, on the other hand, has taken advantage of this time and secured large areas of copper mineralization in North America, the drilling of which is promising. A strategic move that is now paying off...

time to read: 4 minutes | Author: Juliane Zielonka
ISIN: KODIAK COPPER CORP. | CA50012K1066 , BYD CO. LTD H YC 1 | CNE100000296 , SOLAREDGE TECHN. DL-_0001 | US83417M1045

Table of contents:


    Matthew Salthouse, CEO, Kainantu Resources
    "[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources

    Full interview

     

    Kodiak Copper - Copper in hot demand on the world market

    Electric cars from brands like BYD and Tesla have one thing in common: they have more copper installed than conventional cars with combustion engines. That is because copper is an essential component used in electric motors, batteries, wiring and charging stations. Estimates show that demand for copper will increase by 1,700 kilotons by 2027 due to electric vehicles.

    Kodiak Copper is a copper exploration company in North America that understands that demand for the coveted metal will continue to grow. Whether renewable energy or EV expansion, copper is desperately needed, and this has had a significant impact on the price of copper. The current price of copper is USD 3.65 per pound as of November 09, 2022.

    In the last decade, it was the other way around: the price of copper was low, so few exploration projects were launched. Now a bottleneck is emerging that Kodiak Copper is taking full advantage of because in order to build mines, copper must first be found.

    Goldman Sachs Group Inc. estimates that mining companies will need to invest about USD 150 billion over the next decade to address an 8 million t copper deficit. BloombergNEF forecasts that the production gap could reach 14 million t by 2040.

    Under the leadership of CEO Claudia Tornquist, the team at Kodiak Copper have already made one copper discovery of significant size in the Gate Zone located just three hours from Vancouver. With numerous other targets to test, Kodiak Copper is poised to make more game changing copper discoveries. The discovery has already attracted strategic investors such as Teck Resources. Kodiak Copper's drilling programs are thus fully funded in 2022. This year, the Company has initially focused on further drilling at the Gate Zone and is reviewing similar geophysical targets in the immediate area. New copper-gold-silver intercepts were reported, closing a 170-meter gap at the south end of Gate. In addition, drilling to test geophysical anomalies northeast of Gate identified a 400-meter parallel mineralized trend in the nearby Prime Zone. That gives Kodiak Copper a strong competitive advantage in the battle for the highly sought-after metal.

    BYD - New EV premium model for luxury enthusiasts

    Leading the way in electric mobility is Chinese automaker BYD. Thanks to additional incentives from the Chinese government, the Company is now focusing exclusively on building and further developing EVs. Cars with combustion engines have now been removed from the program. According to Reuters, the Company's sales more than tripled in the first 10 months of this year, reaching 1.4 million vehicles. The group plans to launch a new luxury car in Q1 2023. Cost per vehicle: EUR 140,000.

    China's largest electric vehicle manufacturer can also boast that its net profit in Q3 2022 increased by 350% YOY. This is due to a broader product offering and strong sales that allowed the Company to beat Tesla, among others, in the world's largest car market. The latter's CEO is rather busy with Twitter at the moment, selling Tesla shares to be a bit more liquid.

    BYD's net profit for the July-September quarter reached 5.72 billion yuan (USD 788.75 million), while for the first nine months it rose 281% to 9.31 billion yuan, the Company said in a stock market report on Friday. The EV sector is only one part of the group's business. **With the further promotion of IoT, 5G and AI applications, the group's three major business areas will maintain good development momentum. The demand for copper here is unbroken.

    SolarEdge - Smart energy solutions made in Israel

    Israeli company SolarEdge is a winner in the current gas crisis that has Europe firmly in its grip. SolarEdge is driving the development of smart energy, covering a wide range of market segments with its solutions for PV, storage, electric vehicle charging, batteries, UPS, electric vehicle drives and grid services.

    Sales in Europe were up 90% in the third quarter compared to the same quarter last year. In Germany, sales were up as much as 125% from the previous quarter. Shares of SolarEdge Technologies rose more than 10% in after-hours trading after the Company reported its third-quarter results. Revenue of USD 836.7 million (up 59% YOY) was above the consensus estimate of USD 826.36 million.

    Earnings per share were USD 0.91, compared to the consensus estimate of USD 1.47. Solar segment revenue increased 65% YOY to a record USD 788.6 million

    SolarEdge CEO Zvi Lando thinks the strong growth momentum will continue in 2023. "During the quarter, we prioritized shipments to Europe after the expected difficult winter," Lando explains, saying that the primary market in Europe is the family market. As a result, sales fell 19% quarter-over-quarter to USD 252 million, although the Company expects continued growth in the US retail market over the next year.

    Analysts at Wells Fargo Bank raise the stock's target price from USD 283 to USD 306 due to the high demand for smart energy solutions.


    The global economy is facing an upheaval in energy supply. In order to further reduce CO2 emissions, the focus is increasingly on electrification. Whether electromobility or renewable energies - demand for copper will continue to increase, and the stable copper price proves how valuable the metal has already become. It takes at least 10 years to build up a mine. Kodiak Copper has already done pioneering work and discovered large areas of copper. Current drilling indicates high deposits. This will allow companies like BYD and SolarEdge to further commercialize technologies that will make investors' hearts beat faster.


    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

    Juliane Zielonka

    Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.

    About the author



    Related comments:

    Commented by André Will-Laudien on July 17th, 2024 | 09:00 CEST

    Elon Musk finances Donald Trump - Now a strategic move with Rheinmetall, Aixtron, Almonty Industries, and Varta

    • Mining
    • Tungsten
    • renewableenergies
    • Defense
    • hightech

    An assassination attempt with consequences. Tech billionaire Elon Musk has expressed his deepest solidarity with presidential candidate Trump following the assassination attempt. The Tesla CEO will henceforth financially support the Republican presidential candidate's campaign massively. Musk intends to provide around USD 45 million per month, as reported by the Wall Street Journal. The latest election polls now put the Republican clearly ahead of Biden. This could lead to a strongly US-oriented policy in the spirit of "America First". Above all, Trump aims to halt immigration, invest in the ailing infrastructure, massively arm the national security, and revitalize "Old America". Everything suggests that the blockbuster sectors of high-tech and armaments will continue thriving for now. The focus is clearly on strategic raw materials due to the efforts to reduce foreign dependencies. Where are the opportunities for shareholders?

    Read

    Commented by Armin Schulz on July 17th, 2024 | 07:45 CEST

    Nel ASA, dynaCERT, Plug Power - Hydrogen: Multiplier or downfall?

    • Hydrogen
    • greenhydrogen
    • renewableenergies
    • Electromobility

    Hydrogen technology could not only revolutionize the future of energy but also offer significant opportunities for investors. Hydrogen stocks are currently in the spotlight and promise potentially high returns. Companies specializing in the production, storage, and distribution of hydrogen could be among the big winners of the energy transition. Many of these companies are still in the early stages of development, which means high growth opportunities but also entails corresponding risks. The question is: Can you get multipliers in your portfolio with hydrogen companies, or is there a risk of total loss? We look at three companies aiming to make money with hydrogen.

    Read

    Commented by Fabian Lorenz on July 17th, 2024 | 07:30 CEST

    Siemens Energy share down 50%? Now time to buy Rheinmetall, Bayer, and Saturn Oil + Gas?

    • Mining
    • Oil
    • Defense
    • Pharma
    • renewableenergies

    Can the Siemens Energy share halve in value? At least, that is what the analysts at Bernstein think, who have set a price target of EUR 15. After a strong rally, the focus is now back on the Company's problem areas, such as India. Rheinmetall, on the other hand, is recommended as a "Buy". Can the armaments group thus end its sideways movement? In an initial study, analysts see around 50% upside potential for Saturn Oil & Gas. The oil company intends to significantly increase its free cash flow in the coming years but is considered undervalued compared to its peers. Some analysts see even more potential. Analysts are cautious about Bayer shares. In addition to the well-known legal disputes, operational issues are also a burden.

    Read