Close menu




May 27th, 2021 | 07:25 CEST

Nevada Copper, Salzgitter, NIO: The Greens and the Copper Price

  • Copper
Photo credits: pixabay.com

Since the end of March 2020, the copper price has doubled. The trend is intact and investors are using every minor interim correction to get in. After the pandemic, countries worldwide want to get their economies back on track and fit for the future. Investments in infrastructure have been overdue for years anyway and are the very first measure for many countries. Sustainable solutions, such as charging infrastructure for electromobility, are also on the agenda. The copper price should continue to benefit. Demand from Germany, in particular, is likely to increase - a look at the polls in the election year suggests that it should soon rain billions for electric cars and their charging infrastructure. Some stocks are already benefiting.

time to read: 3 minutes | Author: Nico Popp
ISIN: CA64128F1099 , DE0006202005 , US62914V1061

Table of contents:


    Nevada Copper: A copper producer with aces up its sleeve

    The Canadian Company Nevada Copper has a promising mining project in the US state of Nevada. The underground mine is already partly in production and will be further expanded. This summer, Nevada Copper is set to get going. The Pumpkin Hollow mine is expected to produce 77 million pounds of copper per year. The open pit mine not far from the underground project could even produce 200 million pounds of copper. In addition, there are 4 other properties where Nevada Copper is pushing ahead with exploration.

    In particular, the planned open pit mine, which has already been approved, offers Nevada Copper great potential. 5 billion pounds of copper are expected there, with the rock having high grades of up to 0.69% copper equivalent. According to the Company, the open pit mine alone could stand for an annual EBITDA of USD 239 million - and that at a copper price of only USD 3.20. Currently, the industrial metal is trading around USD 4.50 after an interim correction. In the past, Nevada Copper's share price often suffered from the Company's oppressive debt mountain and the large number of shares issued. With production now starting up, this market skepticism should gradually dissipate.

    Due to the exploration potential and the already approved open pit mine, which is sustainably designed and meets ESG standards, Nevada Copper offers everything it needs for a positive share price development. The share price has fought its way free in 2021 and is currently consolidating. Those who believe in copper can take a closer look at the value.

    Salzgitter: Tradition with potential

    When it comes to industrial metals, German investors, in particular, are quick to think of Salzgitter. The Company from the city of the same name also posted a negative result in 2020. Above all, the pandemic affected Salzgitter. Thanks to rising orders in the summer, however, the steel group got off lightly. Salzgitter sees itself as a steel technology group and stands for flat steel, beams, plate and tubes. Particularly because of the economic recovery, the further course of business is likely to be positive.

    Despite this, the share price did not develop to the shareholders' liking in the past three months, with the share falling by 1.6%. On a one-year horizon, however, the price gain of 123% is significant. In the long-term chart, the share could encounter resistance beyond the EUR 30 mark. After that, however, additional price potential could arise. Salzgitter is a solid share with comeback potential. However, the Company's trees do not grow to the sky.

    NIO: Innovator with sand in the gears

    The Chinese electric car manufacturer NIO is another potential demand driver for copper. Each electric car contains around three times more copper than conventional combustion engines. In addition, there is copper in the charging infrastructure for electric vehicles. NIO has made a name for itself with stylish models and long running times. The stock was at times as popular as that of Tesla or BYD. Yet, at times, the air was out of the value. Over a period of three months, the share lost 17%. Recently, however, NIO is on the rise again and has gained more than 10% in just five trading days. If the stock gets back on track, there could be potential for speculative investors. However, investors need to keep in mind that NIO has already done very well - in the last 12 months alone, the stock gained a staggering 247%. This development is also due to the China fantasy and the innovative models.

    But the competition is catching up! Volkswagen has launched an e-car offensive and Daimler and others are also committed to electromobility. Since German manufacturers are scoring points worldwide with strong brands, it could become more difficult for newcomers such as NIO to grow in the long term. Volkswagen, in particular, is very popular in China. NIO is a stock that gamblers can keep an eye on. Beyond EUR 20, the stock could gain new momentum. Those who want to focus on critical raw materials for electromobility instead of electric cars can take a closer look at Nevada Copper. Raw materials from Western industrialized countries are in demand because more and more e-car buyers are asking questions about the origin of the metals and ESG criteria. Politically, there is also a trend to become less dependent on foreign raw materials.


    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

    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



    Related comments:

    Commented by André Will-Laudien on June 6th, 2023 | 07:45 CEST

    Climate Crisis: Copper is the new oil! BYD, Orestone Mining, Ford, Nio - 100% acceleration in Greentech

    • Mining
    • Copper
    • Electromobility
    • GreenTech

    At the beginning of May, analysts at Bank of America declared a new "super cycle" for basic and raw materials. What they mean by this is that a whole series of important materials will be in great short supply for years. The prime example is the red metal copper. The price of the industrial metal has almost doubled in the past 12 months. It is currently quoted at around USD 8,350 per tonne, not far from the historic high of USD 10,750. During the pandemic, the metal briefly fell to USD 4,500. Currently, however, forecasts are once again pointing upwards. Bank of America expects the price to more than double again to around USD 18,000 in the next three years. We take a look at some hot stocks.

    Read

    Commented by Stefan Feulner on June 2nd, 2023 | 08:00 CEST

    ThyssenKrupp, Orestone Mining, Nevada Copper - Optimistic about the future

    • Mining
    • Copper
    • Gold
    • Silver

    Overall, copper is an indispensable part of the green transformation due to its excellent electrical conductivity, corrosion resistance and reliability. It enables the efficient use of renewable energies, promotes electromobility and supports sustainable infrastructure development. Due to recession fears, the base price corrected strongly in recent months. In the long term, copper should make a renewed attempt to reach new highs due to high demand and too little supply.

    Read

    Commented by Armin Schulz on May 30th, 2023 | 10:00 CEST

    Barrick Gold, Desert Gold, Deutsche Bank - What happens after the US debt ceiling is lifted?

    • Mining
    • Gold
    • Copper
    • Banking
    • Investments

    In the US, the Democrats and Republicans have agreed on a compromise in the debt dispute. This means that the US can take out more loans, which will ultimately result in an increasing money supply. This could further fuel inflation, while on the other hand, it could boost the gold price. In recent months, the gold price has soared due to the turbulence in the banking sector and was able to mark a new high. Nevertheless, this is remarkable because the FED had raised interest rates significantly, which would typically have tended to argue for a falling gold price. If interest rates do not rise further or even fall, this would be another positive signal for gold. We, therefore, look at 2 gold companies and analyze Deutsche Bank.

    Read