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Recent Interviews

Gary Cope, President and CEO, Barsele Minerals

Gary Cope
President and CEO | Barsele Minerals
Suite 1130 - 1055 W. Hastings Street, V6E 2E9 Vancouver (CN)

info@barseleminerals.com

+1(604) 687-8566

Interview Barsele Minerals: 'I have never seen a project with such good general conditions'.


Sébastien Plouffe, CEO and Director, Defence Therapeutics

Sébastien Plouffe
CEO and Director | Defence Therapeutics
1680 – 200 Burrard Street, V6C 3L6 Vancouver (CN)

info@defencetherapeutics.com

+1 (514) 947 2272

Interview Defence Therapeutics: Platform strategy the key to success


Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


07. January 2021 | 10:06 CET

Nevada Copper, Glencore, Tesla: E-mobility seeks copper!

  • Copper
Photo credits: Nevada Copper Corp.

Almost unnoticed, the copper price recently climbed to a 7-year high. No wonder, because the political efforts favoring e-mobility are intensified nearly every week! The complete changeover to the "electric car" is seemingly a done deal in Brussels. Regardless of the never-ending discussions about the lopsided eco-balance concerning battery production & disposal, the political will is spreading among the population. With tax incentives, the topic of "solar energy" could also be pushed forward, so why shouldn't company fleets and company cars be promoted appropriately. The consumer often feels good about the income tax, and we can recite a 7-verse poem about this topic in Germany.

time to read: 4 minutes by André Will-Laudien
ISIN: CA64128F1099 , JE00B4T3BW64 , US88160R1014


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 - 25,000 tons in the pipeline

For many market participants, the Nevada Copper project almost has a beard! The stock has been known since 2007 when it went public at around EUR 1.50. Just as the financial crisis began the price even tripled to EUR 4.50. Then, though, the copper price slumped, and the Nevada project became quiet. A lot has happened on the market in recent months: on the one hand, copper demand has skyrocketed due to the many e-mobility projects. On the other hand, hardly any more mining capacity has been created in recent years. A classic supply market, there is excess demand and the few producers have a firm grip on the price structure.

Using a financing package from KfW IPEX-Bank and existing shareholders willing to pay, Nevada Copper created sufficient liquidity and will now revive its project in the Nevada desert in 2021. The project will start with an underground mine that will go into production in the first quarter. The material handling systems for this have just been installed. The entire plant is located near the capital Reno, where Tesla, Google and Switch also conduct their mobility research. Nevada has been a mining state for two centuries, and the legal conditions could not be better.

In the second stage of development, an open-pit mine will be launched, but several financing rounds are still planned for this. The debt is still as high as the market capitalization, but the first cash flows will be used consistently to bring the mine forward and reduce the debt capital in parallel. Nevada Copper's share price has already reacted positively to this news, rising from CAD 0.09 to CAD 0.17 in 6 weeks. If the project progresses as presented by the management, the share price will certainly soon be somewhere else - currently, of course, the entry is still speculative.

Glencore - on the way up again

With the just-completed Brexit, some British shares are in high demand. This is also the case for Glencore PLC, which has become world-famous as a commodity producer and trader. The Company manages its commodities operations out of Switzerland (Baar), but its shares have been domiciled in Jersey under British law. Glencore employs over 160,000 people and is one of the largest commodity traders in the world. Its revenue in 2019 was over USD 215 billion, and its market capitalization is already very mature at USD 36 billion.

The Company holds substantial stakes in listed mining groups Minara Resources (Australia; nickel; 70%) and Century Aluminum (United States; aluminium; 44%). In Africa, the Company holds just under 75% of Katanga Mining Limited, located in the Congo. In the Peruvian mining Company Volcan Compañía Minera, Glencore has been the majority shareholder since 2017 as a holder of 55% of the shares. In Asia, Glencore has held a 69.7% stake in Kazzinc since 1997. With these holdings, Glencore is doing very well in the industrial metals sector, especially the properties in Africa, Peru, and China, accounting for about 20% of world production in copper.

For Glencore, a new chapter in the Company's history begins with the resignation of long-time chairman Ivan Glasenberg. He is succeeded by the South African Gary Nagle, who has been with the Company since 2000 and has been responsible for the coal trade division where Glasenberg once made his career at Glencore. So Nagle understands the raw material deposits - which is an advantage for the job as CEO.

The Group is increasingly becoming a mining group and has long since ceased to be a pure commodities trader as it was in its early days. Apart from a few minor scandals, this is also where the shares charm lies. After overcoming the EUR 3 mark, the chart should continue to rise.

Tesla Motors - Is this a Volkswagen 2.0?

If you've been following Tesla Motors for a few months, you've seen a stock that flies and flies and then flies some more. Despite two capital increases and a stock split, the Tesla stock jumps to new highs every day with the market capitalization reaching the USD 730 billion mark yesterday. That means Tesla is now worth 1.3 times what all global auto manufacturers and suppliers combined are worth. The recent price jumps of about 5% per day can be compared to an entire Ford Motors. Ford itself employs 190,000 people and generates USD 156 billion - Tesla Motors only manages USD 40 billion in sales and isn't even profitable in car production.

The Tesla story is reminiscent of Porsche's failed takeover of Volkswagen AG in 2008, where Porsche, controlled by Ferdinand Piech, had bought up all the call options on VW's common stock. It then saw its share price rise over 1,000% due to its inability to deliver, and a capitalization that was half of Tesla's current valuation. It was a coup that the legendary Porsche boss Wendelin Wiedeking attempted, but everything turned out quite differently in the end. The case is still occupying the courts in Stuttgart and Wolfsburg today and is not yet off the table, as many small investors were involved in the sales.

At the time, investors had speculated with borrowed shares; there was a technical delivery problem. How the story with Tesla will end remains to be seen. There is a presumption that some shares will have to be bought through inclusion in the S&P 500 index. On the other hand, Elon Musk owns a few million options on shares, which have to be regularly covered on the market to deliver them to the founder and visionary. Elon Musk does not draw a salary, but only profits from the share price's success - regardless of the Company's operational success. The result of this rally will undoubtedly go down in history.

Meanwhile, Morgan Stanley is heating up the party a bit more and sets a price target of USD 810 - but that's only 5% upside. Our bold prediction is: in 6 months, well above USD 1,000 or below USD 350. Please do not laugh.


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:

21. July 2021 | 12:49 CET | by Armin Schulz

QMines, Varta, Siemens Energy - Who benefits from the copper shortage?

  • Copper

The copper price has moved significantly upwards over the past year. On the one hand, this is due to the increasing demand caused by sustainability topics such as renewable energies, e-mobility and global electrification. On the other hand, the metal has become scarce. Whereas 60 profitable copper projects were launched in 2008, only 36 were established in 2020, and this with declining mining values. In 2015 0.65% copper per ton was still being mined; this value will fall to 0.55% by 2025. Existing large copper mines will also need billions in the coming years to maintain their production levels. These additional costs will be passed on to consumers. Today we highlight three companies that either produce or need copper.

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20. July 2021 | 12:38 CET | by André Will-Laudien

BYD, Volkswagen, Kodiak Copper: The 1000 Dollar Correction!

  • Copper

The copper price had reached its interim high in May 2021 at around USD 10,500. Since then, we have seen a standard consolidation of 10-15%, which is not an unusual occurrence in an uptrend. The increase since the beginning of 2020 is over 100%. Copper mines have been able to post multiple performances in the same period, and the recent correction was accordingly somewhat higher. For many market participants, however, the medium-term scenario for the industrial metal is set. Since the political closing of ranks on e-mobility, demand for copper and battery metals has shot through the roof. Mine operators worldwide are alarmed; the currently recoverable capacities cover just 85% of the demand from 2022. Who can close the gap?

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19. July 2021 | 11:05 CET | by Carsten Mainitz

Barrick Gold, GSP Resource, SMA Solar - Buy Prices?

  • Copper

Raw materials and energy are central prerequisites for our life as we know it not to stand still. Often it is only when there are supply bottlenecks and significant price jumps that we become aware of the importance of what is suddenly no longer readily available. Due to their fundamental importance, commodities and energy are therefore forward-looking investment themes. We present three exciting companies. Who will win the race?

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