Close menu




June 18th, 2021 | 12:33 CEST

Kodiak Copper, Deutsche Telekom, Varta - What is going on in commodities?

  • Copper
Photo credits: pixabay.com

The hype around wood lasted until May 25, after which the rally ended and the price consolidated by a whopping 40%. Gold was trading above USD 1,900 last week. In parallel to this article's writing, the price is below USD 1,800. A minus of about 5.5% within five days, and the industrial metal for electrification and copper, dropped by 8%. Currently, all factors speak for a further increase in commodity prices. Real interest rates are still negative, and inflation should also remain high. The Fed could not help calm the markets, although interest rate hikes were not announced until 2023. However, the Fed intends to continue its bond purchases. Consolidation can always occur after strong increases, and so we will see long-term rising commodity prices, especially for precious metals and copper.

time to read: 3 minutes | Author: Armin Schulz
ISIN: CA50012K1066 , US2515661054 , DE000A0TGJ55

Table of contents:


    Kodiak Copper - Exploration accelerated by 2nd drill rig

    The MPD project covers 14,716 hectares since the Axe acquisition. Exploration drilling has been underway here since March this year to reach the 30,000m target. Currently, work is underway on the promising Gate Zone. On May 11, the Company issued an update on the drilling program. A total of 6 holes totaling 3,711m have been completed. Drilling indicates that 75m north and 125m south of the last holes also contain promising copper anomalies.

    On June 17, the Company announced the deployment of a second drill rig to move forward more quickly with exploration. CEO Claudia Tornquist expects initial drill sample results in a few weeks. The flow of information is likely to continue in the coming months. Once the main work in the Gate Zone is done, the next step is to deploy a drill rig in the Dillard Zone. This zone has similar geology to the Gate Zone, offering further potential for the MPD project.

    After my last article on Kodiak Copper, the stock rallied nearly 60% to CAD 2.34. Since then, the copper price has consolidated, and so has the stock, which is currently priced at around CAD 1.90. Due to the upcoming news, you can now buy shares, just in case you missed the first entry. It is going to be an exciting few months at Kodiak Copper.

    Varta - The battery specialist with a dividend

    Varta has been working on a high-performance lithium-ion cell called V4Drive, and not just since the German carmakers went on the offensive with e-mobility. It was announced back at the end of March, and there is now the first German premium car manufacturer that could be won as a customer. No wonder, because the technical data speaks for itself, the charging time is only 7 minutes.

    Rumor has it that Apple is also in talks with Varta, as Apple is trying to bring an autonomous car to market. A battery that can be charged quickly would, of course, be an advantage. However, it must be noted that pilot production of the battery is not scheduled to start until the end of the year. If this is successful and the Company finds other large partners, the potential would be enormous.

    The share formed a double bottom on May 12 and has constantly been rising since then. Therefore, yesterday's Annual General Meeting should have been relatively calm, especially as a dividend of EUR 2.48 per share is to be distributed to shareholders. The resistances at EUR 136.90 and EUR 138.50 were successfully overcome. The next target is EUR 145.50. Currently, however, we would wait for a setback to get in.

    Deutsche Telekom - Breakout successful

    Business at Deutsche Telekom is going well, with revenue up 32.3% in the first quarter. However, the result includes the acquisition of Sprint; otherwise, revenue would have only grown by about 7%. And that brings us to the only bad news - it has been announced that a shareholder of T-Mobile US has filed a lawsuit against the merger. It accuses the board of directors of not renegotiating the merger, even though SoftBank would have been under pressure because of other business cases.

    The stock does not care much, and Deutsche Telekom's management also wants to continue the growth story and further expand its stake in T-Mobile US. No wonder, since the subsidiary currently generates 60% of the Company's profits. But business is also going well within Germany. Management's target is to increase Group revenue by 1 to 2% per year and adjusted EBITDA by as much as 3 to 5%. A dividend of at least EUR 0.60 is to be paid, but it can also be more if the results are good.

    Since the share has overcome the resistance at EUR 15.50, it has been on an upward trend. The next resistance is EUR 18; if this is broken, the share has room to move up to EUR 19.30. Investors should be wary of a pullback here. As an investor, you should wait for a setback to get in and then participate in the excellent dividend yield.


    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

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Armin Schulz on May 17th, 2022 | 10:29 CEST

    Varta, Nevada Copper, E.ON - Shares for the electrification of tomorrow

    • Copper
    • Electromobility

    More and more people are gaining access to electricity. In order to make this possible, copper is needed because this industrial metal is the best conductor of electricity. Due to the upheaval in the energy industry towards renewable energies and the electrification of vehicles, demand is increasing. Supply cannot keep pace. Although 2021 copper production has increased by 2.2%, it is only 0.3% above the pre-Corona level. That explains the significant increase in copper prices, and we can expect a supply deficit in 2022 as well. We look at three companies for the electrification of tomorrow.

    Read

    Commented by Carsten Mainitz on May 4th, 2022 | 13:57 CEST

    Phoenix Copper, Glencore, Rheinmetall - High demand is intact

    • Copper
    • commodities

    In its latest report, the World Bureau of Metal Statistics (WBMS) provided an interesting insight into the general conditions of the metal markets at the beginning of the year. According to this report, there is still a global demand surplus for copper - just as there is for lead and nickel. In the first two months alone, the deficit already amounted to 83,000t of copper, up from 476,000t in 2021. In contrast, mine production rose by just 2.8% in January and February. However, coal and defense products are also currently in demand globally.

    Read

    Commented by Stefan Feulner on May 4th, 2022 | 10:22 CEST

    BYD, Nevada Copper, XPeng - New opportunities for copper shares

    • Copper
    • Electromobility

    After a brilliant year on the stock market in 2021 and reaching new 10-year highs, the copper price reached new highs again at the beginning of March, after the start of the Ukraine conflict. Since then, the base price has been correcting at a high level. However, due to the plan of politicians to practice an even faster switch to renewable energies, the demand for the elementary red metal is increasing significantly. Experts forecast a new supercycle for the next few years. Producers of the scarce commodity are the primary beneficiaries of this trend.

    Read