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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


12. April 2021 | 07:50 CET

NIO, Varta, Nevada Copper: Where the best opportunities lurk in the value chain

  • Copper
Photo credits: pixabay.com

The theory around value creation is simple: the more a raw material is refined or processed, the greater the margin a company can ultimately achieve. While a kilo of Kobe beef fillet costs around EUR 400, a savvy chef will conjure up ten dishes from it and take in four-figure sums. There are many reasons to invest at the end of the value chain, but the risk also increases. If the chef cannot cook, he will not make sustainable sales even with the best ingredients. The situation is similar in the value chain around electromobility.

time to read: 3 minutes by Nico Popp
ISIN: US62914V1061 , DE000A0TGJ55 , CA64128F1099


Matthew Salthouse, CEO, Kainantu Resources
"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources

Full interview

 

Author

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


NIO: Milestones and obstacles

The Chinese Company NIO builds e-cars and has been doing a lot right in recent years. The Company's sedan broke the soft-riding sound barrier of 1,000 km, and most recently, saw its 100,000th production vehicle come off the assembly line. Even if established manufacturers, such as VW, can only laugh at such production figures, the round mark proves that NIO is poised to become an established player in the field of electromobility. The growth figures also speak for this: In the first quarter of 2021, NIO delivered 7,257 cars, 373% more than in the same quarter of the previous year.
Such growth figures have always been well received on the stock market. On a one-year horizon, the share gained around 1,170%. However, in the last three months, the value has weakened somewhat and lost more than 30%.

Comparable to the chef example, the stock market assumed NIO had the best possible products and a booming business last year - and now there are doubts whether everything will really turn out that way. The theory says that the most money can be made with complex products that incorporate engineering and development work, but this area is also particularly competitive. The electric offensive by German manufacturers, such as VW, could quickly put newcomers like NIO in a bind. Volkswagen is also very popular as a brand in China. In contrast, NIO is unknown in Germany. NIO's future success is not set in stone. The stock is relatively expensive after its brilliant rally.

Varta: What is the catch?

Varta wants to act one step ahead of NIO in the value chain. The Company has always been known for good quality batteries and rechargeable batteries. In hearing aids and headphones, customers appreciate the longevity and high quality. It has been clear for some months that Varta also wants to get involved in rechargeable batteries for electric vehicles. The opportunity seems favorable given the German e-car offensive. If batteries are manufactured not far from Germany's major car production facilities, it would eliminate some of the risks associated with long supply chains. Plus, "Made in Germany" looks good on one of the most important components of premium vehicles. Is there a catch, though?

Varta's stock has already risen about 80% in the last year. There is not yet a production facility for batteries for electric cars. Also, the Chinese have done a lot of research on the technology in recent years and are currently the leaders in batteries for electric vehicles. Chinese batteries are also likely to be very competitive in terms of cost. Once before, competition from the Far East caused German companies in a sustainable sector to slide into bankruptcy: in the case of solar cells, companies such as Q-Cells and SolarWorld simply could not keep up a little more than ten years ago and suffered from falling margins. It is still uncertain whether Varta's plans will bear fruit. While there are good arguments for battery manufacturing in Germany, there are also reasons not to.

Nevada Copper: Clear conditions and 4.4 billion pounds of copper

The situation is different at Nevada Copper. The copper producer is in the process of bringing its underground mine in the US state of Nevada fully into production. It expects to reach this goal before the end of the first half of the year. Copper plays a crucial role in electromobility: every electric car contains around three times more copper than conventional combustion engines. Nevada Copper's reserves currently comprise about 4.4 billion pounds of copper. The price of copper has already risen significantly in recent months - the start of full production could come at the right time.

While it is very important to convince end customers of the benefits of complex products such as batteries or finished e-cars, the situation is different for raw materials. Copper is needed in many areas and finds customers outside of electromobility, such as in large construction and infrastructure projects. Also, in contrast to automotive brands, there are, to put it simply, fewer differences in quality - copper is and remains copper. If it can be mined cost-effectively within an intact infrastructure, the chances of good business are good. Unlike companies that are currently dreaming of the electrified future, Nevada Copper, where KfW, among others, is on board as a capital investor, will soon really get going. Also, the stock does not have a rally behind it, like NIO or Varta. Investments at the beginning of the value chain have their appeal and sometimes even offer better chances of an attractive risk-reward ratio.


Author

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



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:

30. July 2021 | 11:21 CET | by Carsten Mainitz

First Majestic Silver, Kodiak Copper, Orocobre - Metals for e-mobility offer great growth potential

  • Copper

Tesla, NIO and Polestar, the pioneers of e-mobility. But the global climate crisis and the realization that it can only be combated with the help of a consistent reduction in greenhouse gases has also led traditional car manufacturers to realize that alternative drive concepts are necessary, not least as a result of legal requirements. Electromobility has currently established itself as the most promising option. Manufacturers are now hastily trying to steer their product development in this direction and are making announcements about the end of the internal combustion engine: Jaguar wants to phase out the engine by 2025. Fiat, Volvo and Ford have announced the end of the engine by 2030. VW has set the period between 2033 and 2035 as its target, at least for Europe, and Audi wants to phase out entirely by then. Mercedes also has a similar date in mind. However, all e-cars have one thing in common: they are very hungry for raw materials. An e-car requires about four times as much copper as a combustion engine. Consumption of gold and silver (onboard electronics) and lithium (batteries) will also increase significantly.

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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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