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 Stefan Feulner on January 17th, 2022 | 11:20 CET

    BYD, Nevada Copper, Nordex - Copper, the next run

    • Copper

    After a prolonged sideways movement and a bottoming out in the USD 9,000 area, copper celebrated the recapture of the psychologically important USD 10,000 mark last week. The triumphant march of the red metal is likely to continue in the coming years due to the energy transition. Stronger demand is offset by scarce supply, which is being further fueled by the electrification of transport, among other things.

    Read

    Commented by André Will-Laudien on January 7th, 2022 | 11:46 CET

    Varta, Nordex, Kodiak Copper: The 100% opportunity with copper in 2022!

    • Copper

    The climate decisions made in Glasgow in November are casting their shadows far ahead. It is becoming clear to the protagonists: electromobility and efficient electricity storage are increasingly important for the energy transition. Consistent decarbonization requires research, development and production of drives, batteries and components. The red conducting metal copper is an essential component of electrical components of all kinds. Today, an e-drive vehicle requires three to four times the amount of copper as an internal combustion model, plus the great demand in industrial manufacturing processes. The earth's reserves are exhaustible, and copper, in particular, is pretty much on the edge. We take a look at some interesting investment opportunities.

    Read

    Commented by Nico Popp on January 5th, 2022 | 09:22 CET

    A portrait of three hot stocks: Rock Tech Lithium, Nevada Copper, Porsche

    • Copper

    Shift down a gear, change lanes, and then feel the engine's thrust. Friends of sporty driving must have been relieved when the new German government presented the coalition agreement, and it did not include a speed limit. Powerful overtaking maneuvers are generally most successful with an electric car. So sustainability and driving pleasure do not have to be a contradiction in terms. But for e-cars to be truly green, they need sustainably mined raw materials and companies that can make the most of them. We present three shares that not only make driving fun on the road but also give your portfolio a boost.

    Read