06. July 2021 | 10:55 CET
NIO, Troilus Gold, Vestas - Shares with a tailwind
US President Joe Biden has been in office for around six months. In contrast to his predecessor Donald Trump, he places climate protection at the center of his policies. The renewed accession of the US to the Paris Climate Agreement was the first official act, and the updated Nationally Determined Contribution to climate protection stipulates that the USA will halve its emissions by 2030 compared with 2005. It aims to turn this around with massive trillion-dollar programs. Companies that rely on renewable energies will benefit from this in the long term.
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ISIN: NIO INC.A S.ADR DL-_00025 | US62914V1061 , TROILUS GOLD CORP. NEW | CA8968871068 , VESTAS WIND SYST. NAM.DK1 | DK0010268606
"[...] I wouldn't be surprised if the project ends up showing more than 5 million ounces. [...]" Gary Cope, President and CEO, Barsele Minerals
Vestas Wind Systems - Business is booming
Wind power plays an important role in energy policy. By 2020, wind energy already accounted for more than 15% of Germany's electricity supply. In terms of electricity generation from renewable energies, wind power - onshore and offshore wind power combined - takes first place with a share of 24.5%. Thus, its use is to be further expanded in the coming years. Above all, the upgrading of wind power plants at sea, the so-called offshore plants, is not only on the agenda of the German government but also finds the same consensus among other countries.
Due to the promotion of renewable energies by politicians, the analysts of the US investment bank Goldman Sachs, among others, see the shares of Vestas Wind Systems as a buy candidate. The experts leave the price target at 313 Danish kroner, around EUR 42.09. Further, the analysts cite positive signs from America and refer to a tender won for a project in New Jersey.
In addition to the US order, Vestas was able to fill its order books firmly at the end of the second quarter with further orders with a total volume of 2,000 megawatts. In addition to orders from Europe and the US, signatures were obtained for contracts from Japan, South Korea and the Dominican Republic. From a chart perspective, the share price is working towards the upward trend formed since December. A sustained breakout of the EUR 34.12 mark would mean the short-term potential up to EUR 38.
Troilus Gold - Powerful injection of capital
Economic stimulus programs for climate change, national debt and high inflation rates - currently, the central banks are still focusing on economic growth through the ultra-loose monetary policy. They see no sign of interest rate hikes before 2023, despite the enormously rising inflation rates. As of now, buying up bonds and zero interest rates remain for at least the next two years program, resulting in the best conditions for acquiring physical gold or promising gold mining shares.
Last week, the gold mining explorer Troilus Gold set an exclamation mark. The Company raised CAD 45 million on the capital market, despite the currently weakening gold price. That shows the confidence of primarily institutional investors in both the management and the more than interesting project. Since 2017, the focus has been on expanding the former Troilus gold and copper mine to establish a production facility. Between 1996 and 2010, the Troilus mine produced more than 2 million ounces of gold and nearly 70,000 tons of copper. The concession area is located in the leading mining district of the Canadian province of Quebec, where the Company owns strategic properties covering an area of 1,420 km² in the Frôtet-Evan greenstone belt. The money raised will now be used to further advance the project expansion and prepare feasibility studies for the resumption of production.
Troilus Gold's share price stands at CAD 0.62. The analyst house of Cormark Securities considers the stock a "top pick" and one of the most attractive acquisition targets for larger gold producers, given its size and location. According to the experts, the PFS study scheduled for the second half of the year should be a value-boosting catalyst for the stock. The experts set the price target at CAD 4.50.
NIO - Defying the chip shortage
Despite several days of production stops at its Hefei plant due to the shortage of semiconductors, Chinese electric carmaker NIO shone with record figures for both the month of June and the second quarter. A total of 8,083 electric SUVs were shipped in June in fiscal 2021, an increase of 116.1% compared to the same period last year. From April to June, a total of 21,896 electric vehicles were handed over to customers, representing a new quarterly record. The carmaker's management takes a positive view of the rest of the year. Production is to be ramped up again from July. Due to the acute chip shortage, production capacity was reduced from 10,000 units to 7,500 in the second quarter.
The future belongs to renewable energies. Thus, both wind power and electric mobility are heavily subsidized by politics. Vestas Wind and NIO are among the market leaders in their sectors and should benefit from the boom in the long term. Due to rising inflation, one should not lose sight of gold. Troilus Gold is one of the analysts' favorites and is a top pick in the gold sector by Cormark Securities.