April 21st, 2021 | 09:19 CEST
NEL, Varta, Kodiak Copper: The market has missed this news
Table of contents:
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
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.
NEL: When orders cause disappointment
The shares of the Norwegian full-service provider for hydrogen, NEL, have come back a little after spectacular months and are now trading around EUR 2.50. Although the Company was able to announce some cooperations and orders recently, the air is out of the share a little. Just two weeks ago, NEL announced that it had received an order to build a hydrogen filling station in Quebec, Canada. What was supposed to be a positive signal fizzled out for a company that is still valued at around EUR 3.5 billion - investors were finally hoping for the big hit. A hydrogen filling station is not enough.
Nevertheless, the numerous announcements and NEL's partnerships in the maritime sector show that the Company is the first port of call for many potential contacts. If the hydrogen topic picks up speed, the NEL share should also pick up again. However, weakness currently prevails. Below EUR 2.40, the share could quickly drop to the EUR 2.15 range. Even though NEL is well positioned with its solutions for the storage, transport and production of hydrogen, investors need not panic at present. With such a volatile stock, investments in individual tranches are a good idea anyway.
Varta: Currently no pressure to act
Varta currently presents a similar picture. The battery manufacturer is known for its high-performance button cells and now also offers itself as a manufacturer of batteries for electric cars. After the electric car fantasy had been swirling around Varta's stock for months, the Company itself acknowledged its plans and announced its intention to develop larger cell formats. So the Company is fully on course for e-cars. But the share price has been developing rather weakly for months. The reason for this is the great advanced praise that the market has distributed, especially in the past year. Even after the correction in the share price, the fantasy surrounding electromobility has been priced in. Although car batteries from Germany are an exciting topic in the medium term, there is currently no pressure to act.
Kodiak Copper buys up and significantly expands MPD property
One share where the market has already priced out all positive expectations is Kodiak Copper. In this context, the MPD copper project in British Columbia is considered extremely attractive within the mining scene. In 2020, discoveries of copper deposits caused the share price to shoot up to over CAD 3 at its peak - the share is currently trading at around half that price. Kodiak was able to publish further encouraging drill results and launch a new drilling program. The latest acquisition also underlines that the MPD project is receiving almost all the attention: Kodiak secured the 4,980-hectare Axe property, which is immediately adjacent to MPD. In total, Kodiak now has 14,716 hectares of land in the prospective copper area. The geology of Axe is similar to the nature of MPD and similar to rock formations already exploited by several producing mines in the immediate vicinity.
The Axe property was previously explored in the 1960s. At that time, significant grades of copper and gold were found, particularly near the surface. Highlights include 124 meters of 0.38% copper and 0.22 grams of gold per tonne and a high-grade zone within the drill section with 10.5 meters of 1.55% copper and 0.94 grams of gold/tonne. Kodiak Copper calls the acquisition a perfect match and expects excellent exploration potential, especially at depth and in previously little-explored areas.
"The unprecedented positive market conditions for copper make Kodiak's control of an easily accessed copper-gold region within the prolific Quesnel belt a compelling opportunity for our shareholders. Previous drilling on the property could have missed Gate zone-style high-grade copper-gold targets that may also exist at Axe. Kodiak will now apply the same systematic exploration approach that led to the discovery of the Gate zone at MPD.," summarizes Kodiak Chairman Chris Taylor. Kodiak is paying 950,000 shares for the property and granting a net smelter return of 2%, of which 0.5% can be redeemed at any time for payment of CAD 2 million. Other smaller cash payments are linked to the Ax property development and are payable on such matters as drilling, resource estimates, and feasibility studies.
Kodiak Copper: Broad demand and dynamic growth?
While stocks such as NEL or even Varta are still trading at a high level, Kodiak Copper's stock has already found its bottom. As a copper company, Kodiak Copper is benefiting from rising demand from the electric car industry. There is around three times more copper in every electric car than in conventional combustion engines. In addition, there is copper demand from construction and infrastructure projects. The imminent opening of the economy after the pandemic could give the industrial metal an additional boost. Kodiak Copper's stock is attractive in the long term. The picture of the large copper project in British Columbia is becoming increasingly apparent. All speculation-oriented investors should take a closer look at the value.
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.
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.