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Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


Alex Kent, Managing Director, Aspermont Limited

Alex Kent
Managing Director | Aspermont Limited
613 - 619 Wellington Street, WA, 6000 Perth (AUS)

Corporate@aspermont.com

+61 8 6263 9100

Aspermont shows the success of digitalization - Alex Kent has an agenda


16. February 2021 | 12:53 CET

Nevada Copper, BYD, Varta: Now it's getting hot!

  • Copper
Photo credits: pixabay.com

According to 2020 research from IDTechEx, the introduction of electric traction motors in road vehicles will lead to a significant increase in copper demand over the next 10 years. The study, commissioned by the International Copper Association (ICA), shows that by 2030, more than 250,000 tons of copper per year will be used as part of the windings in on-road electric traction motors. The current increase in copper demand follows the development of the global automotive market. Pure battery-electric cars are expected to gain the most market share at the expense of internal combustion engines and hybrid vehicles. Copper investments, therefore, remain the first choice!

time to read: 4 minutes by André Will-Laudien


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

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author


Nevada Copper - Fresh financing completed successfully

Already 70% of the world's copper production is used in electrical products, with the remainder ending up in the construction and industrial sectors, not to mention in the mint. In recent years, many government coin producers have reduced the high copper content in coinage and used nickel alloys instead. However, this has been a rather fading measure against the copper shortage. In some countries, even major substations are now guarded around the clock to curb copper theft. You can tell - this raw material is in short supply!

The significant demand driver for copper comes from e-mobility. By 2030, electric and plug-in hybrid cars will account for about 19% of the total market, rising to 72% by 2040, according to IDTechEx. Whether it will happen that fast may be doubted today, but the trend is unstoppable.
Nevada Copper sits on an extensive resource with underground and open pit potential nearby. Both prospects are located in Nevada and have an added mine life of more than 30 years, with commercial start-up expected in the 50 million pound underground mine as early as 2021.

There has been no new production facility in North America in the last 10 years, so international attention to Nevada Copper's Pumpkin-Hollow project is very high. The target is a production price of approximately USD 2 per pound, and the market price is currently trending towards USD 4 - a good margin situation.

The Company recently announced another successful financing step. A syndicate of Canadian banks underwrote 230 million shares with a placement price of CAD 0.165. Total proceeds are CAD 38 million. After the good news, the NCU share is again moving towards CAD 0.20. Before Christmas, one could still acquire the value at CAD 0.09. We are still in the project stage, and the increase should continue immediately when the last financing for the mine is in place.

BYD - Expansion to Australia and New Zealand

Again good news from "Build Your Dreams" (BYD). The Chinese Group BYD was able to significantly increase sales of its electric vehicles in China in January. BYD sold 20,178 electric vehicles and plug-in hybrids, 183% more than in the same month last year. This included 14,463 e-cars (+181%) and 5,408 plug-in hybrids (+188%) in the passenger car segment. In addition, there were 307 e-commercial vehicles (+172%). While the whole thing looks good, it is sequentially below December sales. However, this is not a bad thing as December is traditionally a strong month for consumer activity in China. On average, the declines were between 25% and 34%. But sales of internal combustion models also fell more sharply than December and were also up compared to January 2020.

BYD is in the process of diversifying its automotive sales geographically. It announced a long-term agreement with Nexport to collaborate on developing and distributing BYD's next-generation electric cars in Australia and New Zealand. This is the first time the Chinese Company has ventured outside of China. The launch of electric vehicles in Europe, starting in Norway, has also been expected for some time.

In Australia and New Zealand, pre-sales of BYD electric cars will begin in July 2021. A total of four models are envisioned, all of which will be powered by LFP battery technology: Han, Song, Qin and Tang. BYD cannot yet rely on a dealer network, which means they will go into direct sales. Currently, the EV market in Australia accounts for less than 1% of new car sales. When the Company will enter the North American market is likely to remain a power-play between Elon Musk and the governments involved for the time being. The BYD share continues to trade at a high near EUR 28.

Varta - Shortseller attack is over

It was a roller coaster ride in February. After the Varta share moved strongly upwards right at the beginning of the year, this called short sellers onto the scene. Varta AG temporarily reached a price of EUR 180, but then the share price fell below EUR 140. After the short-sellers withdrew, the Varta share has been calm again since mid-February. The environment is still likely to remain volatile. On February 18, CEO Herbert Schein will provide a detailed insight into the recent business development and is also expected to give an updated outlook for the current year. The market has high expectations.

In particular, market participants are likely to be eager to hear the Board of Management's arguments following the good 9-month figures. After all, in late summer, he knew nothing about an upcoming lockdown at the turn of the year. We expect that the Company can still meet the recently raised sales forecast of EUR 840 to 860 million (previous year: EUR 362.7 million) for 2020, but presumably, the outlook for 2021 is slightly lower. Adjusted EBITDA could reach between EUR 230 million and EUR 235 million, and the battery manufacturer will also continue to grow in the current fiscal year, provided the general conditions play along.

In the future, Varta wants to transfer its lithium-ion technology to new, larger batteries and continue to score in the energy storage sector. Innovative battery cells for powering e-cars would be the crowning achievement in the long term, and here the stock market has been speculating for months on a major coup. In recent days, the share has recovered from the previous week's sell-offs and stabilized above the EUR 150 mark, which means that a factor of 7.3 is paid on the planned sales in the capitalization. Quite expensive for an industrial stock but a good deal for an e-mobility company.


Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

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:

15. February 2021 | 10:25 CET | by Stefan Feulner

BYD, Kodiak Copper, Geely - the clock is ticking!

  • Copper

Electromobility is still at the beginning of its development. The demand for vehicles powered by electricity will explode in the coming years. However, this will also increase the need for the necessary raw materials. There is a threat of extreme shortages of some goods. Experts predict that more copper will be mined in the next 25 years than in humankind's entire history to date. The copper price is shooting from high to high at the moment. Take advantage of a trend that is sure to continue to gain momentum, driven by new technologies.

Read

11. February 2021 | 12:32 CET | by André Will-Laudien

Kodiak Copper, Freeport-McMoRan, Millennial Lithium: The copper rally continues!

  • Copper

The whole world revolves around e-mobility, alternatively hydrogen, and everything is to be paid with cryptocurrencies in the future. That is the stock market at the turn of the year in one sentence. Wherever these topics are mentioned, prices go through the roof. Elon Musk can even turn bad Tesla numbers into a price increase with appropriate music, and tweeting the latest findings makes some people a few million heavier overnight. The copper market is a key control variable for technological developments in drives and storage media. We can't get around this commodity in the real world because it is in very short supply on the planet. So it shouldn't be surprising if the hype here goes on and on.

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04. February 2021 | 08:00 CET | by Nico Popp

BYD, Kodiak Copper, BMW: Investing in the future of mobility

  • Copper

The pandemic most recently is showing us that people want to meet, exchange ideas, experience life. Mobility is one of the most important keys to this. As classic combustion engines are politically sidelined in the face of climate change and air pollution in cities, the importance of electromobility is growing. But those who want to invest in this trend are often faced with a dilemma. Shares such as Tesla or BYD are costly, while traditional manufacturers such as Volkswagen and BMW have other problems to contend with. And what about suppliers of the electromobility trend? We present three shares and analyze the opportunities: BYD, Kodiak Copper and BMW.

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