Close menu

December 6th, 2021 | 11:41 CET

NIO, Nevada Copper, Volkswagen - Business is booming

  • Copper
Photo credits:

It is hard to imagine climate change without electromobility. The shift from combustion engines to battery-powered vehicles promises bright growth prospects for the automotive lobby. Despite the rosy outlook, a problem is emerging, one that has been known for years and is likely to become even greater in the future - the shortage of raw materials. Above all, the sharp rise in prices for essential metals is expected to eat into the margins of the automotive industry.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NIO INC.A S.ADR DL-_00025 | US62914V1061 , NEVADA COPPER CORP. | CA64128F7039 , VOLKSWAGEN AG VZO O.N. | DE0007664039

Table of contents:

    Germany steps on the gas

    The newly elected traffic light coalition focuses even more on climate targets. However, a new dynamic has already developed in the electromobility market in Germany over the year, boosted by subsidies. More than 1 million electrically powered passenger cars are already on the roads. Germany is thus well on the way to establishing itself as the lead market for e-mobility and achieving the set target of 7 to 10 million registered electric vehicles by 2030.

    All German automakers are now pursuing ambitious electrification strategies. With its core brand, the Volkswagen Group aims to serve 70% of passenger car sales in Europe with pure electric vehicles and 30% with plug-in hybrids by 2030. BMW aims to electrify 50% of all models by 2030. Daimler also wants to offer only new passenger cars with electric units in the future with its "Electric First" strategy.

    Huge copper demand

    For renewable energies, and especially for electromobility, the demand for copper is enormous. The red metal is considered a base metal due to its nature and conductivity. As a result of the green revolution, experts believe that more copper will be mined in the next 25 years than in the entire history of humanity to date. However, the high demand is offset by an extremely scarce supply. Due to the weak base price, investments in new projects have been strongly neglected in recent years. Goldman Sachs analysts have already called for a new copper supercycle.

    One of the only production-ready new sources of copper supply in North America is in the United States, more precisely in Nevada. The 60 sq km Pumpkin Hollow project, already operated by Nevada Copper since 2007, has significant reserves and resources of copper, gold and silver. Due to several delays to shutdown and management changes, the initially planned production target of 5,000t of ore per day was pushed back further and further. However, high-grade production is currently underway at the underground mine, and the open pit project is on track for a feasibility study.

    Turnaround underway

    In the past, Nevada Copper was also accused of being too weak financially, which the newly appointed management around CEO Randy Buffington was able to solve within a short time. In addition to optimizing operational management, additional financing and a significant deferral and expansion of credit facilities were achieved with KfW, a senior lender to Pumpkin Hollow, and with major shareholder Pala Investments, which holds approximately 38% of Nevada Copper. In addition, the Canadians secured around EUR 78.50 million through a capital increase.

    Operationally, the new management is also stepping on the gas. Buffington revealed that the Company has advanced about 760 lateral equivalent feet in the last 30 days, a 20% increase in average day length over the previous 30 days. The high-grade Sugar Cube zone is scheduled to be drilled in December, and mining is expected to begin early in the first quarter of 2022. With the additional funding received from its recent equity offering, the Company intends to conduct an infill drilling campaign and update its open pit studies to consider opportunities for upsizing, more extensive resources and other optimization measures. Further updates on the Company's 2022 development plan are expected to be released shortly.

    Following the share price decline from EUR 2.37 to currently EUR 0.38, Nevada Copper offers a speculative entry opportunity at a low level, especially on long-term rising copper prices. The stock market value is currently EUR 75.18 million.

    Strong November for NIO

    After a minor dip in October, November was strong again for electric carmaker NIO, which delivered 10,878 vehicles in November 2021, representing a growth of 105.6% YOY. Vehicle deliveries in November were able to catch up significantly compared to the previous month. October was marked by a reduction in production volume due to the restructuring and upgrading of production lines and preparations for the launch of new products.

    Deliveries included 2,683 ES8s, the brand's flagship 7-seat electric SUV, 4,713 ES6s, the midsize SUV, and 3,482 EC6s, as NIO calls its SUV coupe. In total, NIO has delivered 80,940 vehicles so far in 2021, increasing 120.4% YOY. By November 30, 2021, cumulative deliveries of the ES8, ES6 and EC6 reached 156,581 vehicles.

    Climate change is at the top of the priority list for policymakers, along with the fight against the Corona pandemic. The shift from combustion engines to battery-powered vehicles is accelerating in the transport sector. However, this transformation requires an enormous amount of copper. Due to a debt restructuring and a management change, Nevada Copper appears attractive. NIO could regain momentum in its growth.

    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 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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    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.


    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.


    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.