March 2nd, 2023 | 21:45 CET
Nordex, Canadian North Resources, NIO - Strong growth in demand
The invasion of Ukraine and Europe's resulting dependence on Russian oil and gas has significantly accelerated the transformation to renewables as the largest part of the energy mix. However, wind power, photovoltaic systems, and electric cars require significantly more critical raw materials. This is already creating new problems. On the one hand, China owns the lion's share of many of these elementary metals; on the other hand, there is already excess demand for lithium, cobalt, nickel and even copper. Despite a short-term correction due to fears of recession, significant price increases are inevitable in the long term. The primary beneficiaries are raw material producers from Western countries.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
NORDEX SE O.N. | DE000A0D6554 , CANADIAN NORTH RESOURCES INC | CA1364271017 , NIO INC.A S.ADR DL-_00025 | US62914V1061
Table of contents:
"[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel
Author
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.
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Canadian North Resources - Green metals for the West
Politicians would likely be less panicked about promoting the domestic mining industry if they had several alternatives similar to Canadian North Resources' property. The exploration company, based in Mississauga in the province of Ontario, manages the Ferguson Lake property, which totals 253.8 sq km, subdivided into 96.9 sq km of leased land and surrounded by 156.9 sq km of fully owned exploration claims. The property hosts high-grade, large open pit and underground mineral resources containing base metals such as nickel, copper and cobalt, as well as palladium, platinum and rhodium from the Platinum Group. The project, which has been in operation since 1950, has seen over CAD 160 million invested in extensive exploration involving more than 200,000 m of drilling and 650 drill holes, as well as the development of world-class infrastructure.
Canadian North Resources has owned Ferguson Lake, which is sandwiched between high-grade properties such as Agnico Eagle's Melladine Mine and ValOre's Angilak Mine, since 2013, completing a total of 18,144 m of extension and infill drilling last year, which will continue in the current fiscal year for resource expansion along more than 15 km of mineralized strike.
In addition to the drilling program, NI43-101 technical reports and an updated mineral resource estimate were prepared. Thus, the project comprises over 71 million tonnes with significant resources of copper (1,402 million pounds), nickel (872 million pounds), cobalt (99.9 million pounds), palladium (3.20 million ounces) and platinum (0.56 million ounces). However, these estimates are only for the West Zone and the West Extension Zone, which extend for less than 6 km along the total 15 km mineralized belt. Several target zones for massive sulphides and distinct low sulphide zones for PGM mineralization have already been identified.
Canadian North Resources has a market capitalization of CAD 281.03 million with 122 million fully diluted shares. However, only about 20% of the shares are in free float, and the majority of the Company is held by management or institutional investors on a long-term basis. The Company should benefit long-term from the high demand for metals for green energy. In addition, positive results from the upcoming resource expansion, the preliminary final profitability study, and the pre-feasibility study, which are drawing ever closer, should provide impetus for rising share prices.
Nordex - Order books are filling up
The books are filling up. After the Hamburg-based wind turbine operator recently received an order for 80 MW from Lithuania, two further orders followed from Scandinavia. Regular customer wpd, one of the world's leading wind and solar farm developers and operators (IRPP), ordered a total of 109.3 MW for farms in Sweden and Finland. The Nordex Group is supplying ten N163/6.X turbines for the "Tomasliden" wind farm in Sweden. Seven N163/5.X turbines have been ordered for the Finnish "Oulainen" project. In addition, both projects have attached premium service contracts for the maintenance of the turbines for a period of 15 years with an extension option for a further five years.
The consistently positive news flow, given the full order books and general market recovery, has brought shareholders a doubling of their position since mid-October last year. However, resistance in the area of EUR 15 is now waiting to be overcome. In addition, the value is close to the overbought area so a correction would be healthy in the short term. A setback even to the area around EUR 12.10 would not be a disaster from a long-term perspective.
NIO - A significantly larger loss
NIO Inc. is a pioneer and a leader in the premium smart electric vehicle market. In its preliminary fourth-quarter and full-year 2022 results, the Chinese company disappointed, falling short of analyst estimates for both revenue and profit.
NIO reported an adjusted quarterly loss of CNY 3.07 per share for the quarter ended December. The average expectation of six analysts for the quarter was a loss of CNY 1.77 per share. Revenue rose 62.2% to CNY 16.06 billion from a year earlier; analysts had expected CNY 17.26 billion.
For the current first quarter, the Company expects revenues between CNY 10.93 billion and CNY 11.54 billion, significantly missing Refinitiv's estimates of CNY 18.73 billion. The stock was down nearly 5% at the start of trading on the Nasdaq, posting a new low for the year at USD 8.90. If last year's low of USD 8.38 is breached, a major sell-off towards USD 5.65 is imminent.
Nordex Group's order books continue to fill up. In contrast, Chinese automaker NIO reported a significantly higher loss than analysts expected. Canadian North Resources should benefit significantly from its high-grade metals resources for green energy.
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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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