Menu

Recent Interviews

Jim Payne, CEO, dynaCERT Inc.

Jim Payne
CEO | dynaCERT Inc.
101-501 Alliance Avenue, M6N 2J1 Toronto, Ontario (CAN)

jpayne@dynacert.com

+1 416 766 9691

dynaCERT CEO Jim Payne on attractive hydrogen opportunities


Sebastian-Justus Schmidt, CEO and Founder, Enapter AG

Sebastian-Justus Schmidt
CEO and Founder | Enapter AG
Ziegelhäuser Landstraße 1, 69120 Heidelberg (D)

info@enapterag.de

Enapter AG CEO and founder Sebastian-Justus Schmidt on the future of hydrogen


John Jeffrey, CEO, Saturn Oil & Gas Inc.

John Jeffrey
CEO | Saturn Oil & Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary, AB (CAN)

jjeffrey@saturnoil.com

+1-587-392-7900

Saturn Oil & Gas CEO John Jeffrey on the future of the company and ESG


30. December 2020 | 06:50 CET

NEL ASA, Nikola, Nevada Copper, BHP Group: Be part of the next trend from the start

  • Copper
Photo credits: Nevada Copper Corp.

Copper is considered a rather dull industrial metal. Yet copper is more than many investors think: analysts expect that more copper will be mined in the next thirty years than in the entire history of mankind. What sounds enormous is, in reality, so. Copper mines around the world are producing at the limit of their capacity. New projects are waiting in the wings and are urgently needed. One of the main drivers of the copper boom is electromobility. An electric car contains around three times as much copper as a conventional combustion engine. Hydrogen vehicles also contain copper. Reason enough to take a closer look at some interesting stocks around the trend.

time to read: 3 minutes by Nico Popp


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


NEL ASA: Nikola as a cautionary tale?

NEL is a hydrogen Company from Norway and focuses on the production, storage and distribution of hydrogen. If one imagines a mobile future with hydrogen vehicles, these three factors are crucial. Hydrogen must be produced efficiently and environmentally friendly from renewable sources, and it must arrive safely in the tank.

While companies like Nikola are fine-tuning how to get the technology on the road, NEL is taking a fundamental approach to the problem. On the stock market, this strategy is going down particularly well. Over the last twelve months, the share price has risen by around 200%. It has created desire and ensured that the stock is still on the buy list of many investors, even after its significant increase.

From a chart perspective, the share has overcome its resistance just above EUR 2 and even reached the EUR 2.50 mark. The share thus shows how strong a trend can be when it has built up momentum. The hydrogen rally is supported by numerous economic measures that are supposed to be "green" in the sign of the times.

As a result, Companies like NEL are benefiting in particular. But trees do not grow to the sky. It is not foreseeable when the hydrogen hype will end, or when there will be a lengthy consolidation on the stock exchange. Existing shareholders should keep a critical distance from stocks like NEL and not be afraid to profit when they are weak.

The example of Nikola shows that new technology is not a one-way street on the stock market - the shares of the hydrogen pioneer, which faced allegations of manipulation in the summer, lost around a third of their value in the last three months.

Nevada Copper: Junior producer as speculative opportunity

While classic hydrogen stocks are either very ambitiously valued or are already being eyed critically, copper producers are considered boring and anything but "hot". But copper is an important raw material for electromobility. The Canadian company Nevada Copper is the first new US copper producer in ten years. Not far from the production sites of Tesla or Switch, the company is developing an underground copper mine in the U.S. state of Nevada, whose production is expected to reach full capacity in 2021. In the immediate vicinity, there is also an already approved open pit mine of the company, whose production start has not yet been scheduled, however. A few kilometers to the east, Nevada Copper, is exploring another area.

The producer has found a potent financing partner in KfW IPEX Bank and some illustrious shareholders in companies such as Blackrock, Rothchild, Pala Investments and Capital Group. On the stock market, the company is currently valued at around USD 150 million. In view of the imminent comprehensive start of production and the robust key financial data of the projects, this valuation appears very low. The obstacle to a rising share price is likely to be the high debt ratio: Debt stood at just under USD 130 million in November, while at the same time the company had less than USD 1 million in cash.

Most recently, however, financing partner KfW IPEX put together a financing package in the double-digit million range, which should carry Nevada Copper until the underground mine is fully operational. In view of the high debt ratio, the share appears speculative. However, it is also currently worth less than a third than it was a year ago. If Nevada Copper goes into full production as planned, this should be reflected positively in the share price. The tight financing situation may even be an opportunity in times of low-interest rates

BHP Group: Boring, but also solid

The BHP Group share shows that good money can be earned with copper, among other things. The British Company primarily produces iron ore products, copper and coal with petroleum. Recently, sales and profits have weakened, but this is mostly due to the flagging coal business. The Corona pandemic has also caused some distortions. However, the iron ore business in China proved to be robust. While the stock is not a price rocket - it was around 10% in 2020 - it offers a substantial stake in the development of industrial metals as well as a hefty dividend.

Although the Company has cut its payout in 2020, a dividend yield of around 5% still beckons at the current price, making the stock suitable primarily for conservative investors. Those who like speculation are better off with smaller, early-stage companies.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

20. January 2021 | 10:21 CET | by Stefan Feulner

BYD, Kodiak Copper, Xpeng - then it will explode!

  • Copper

The energy transition is in full swing. Month after month, electric manufacturers are posting new sales records. This development is just the beginning and will accelerate in the coming years. However, the demand for raw materials, which are urgently needed for industries such as e-mobility or renewable energies, will also accelerate. There is a threat of enormous shortages of several raw materials in the medium term. The result will be an extreme price explosion.

Read

20. January 2021 | 09:23 CET | by Carsten Mainitz

Varta, Nevada Copper, Millennial Lithium - Electrified: you can still get in at a fair price!

  • Copper

The growth in the areas of electromobility, renewable energies and the multi-faceted technology industry is leading to a substantial increase in demand for raw materials. If expert forecasts are to be believed, demand will significantly exceed supply in the coming years, which can only lead to the conclusion that prices will continue to rise. Copper and lithium are good examples of this. Linked to the topic of energy are also the challenges regarding new storage media. We present three promising companies for which demand and growth play into the cards.

Read

14. January 2021 | 17:34 CET | by Stefan Feulner

Geely, Nevada Copper, Xpeng - Invest in the future!

  • Copper

If you think investing in future technologies like blockchain, hydrogen or electric mobility will offer the most significant returns in the coming years, you could be wrong. These new technologies, in particular, require raw materials and metals that are already in short supply. The sales forecasts for electric car manufacturers, for example, point to one thing for the next few years: a shortage of raw materials. This shortage will lead to a drastic excess in demand and thus to exploding prices. The decade of raw materials!

Read