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Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


01. June 2021 | 11:26 CET

Nordex, GSP Resource, Intel - Attention: it is not too late!

  • Copper
Photo credits: pixabay.com

Months ago, we already drew your attention to the rising copper price due to the expected shortage. Currently, the base price is at a ten-year high. Due to the enormous demand resulting from the energy transition, the trend is likely to continue in the coming years. Large copper producers such as Freeport McMoRan, Glencore or Copper Mountain have already been able to multiply their prices. But it is not too late to jump on the current supercycle.

time to read: 4 minutes by Stefan Feulner


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

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.

About the author


The oil of the energy transition

The current price of a ton of copper is over USD 10,200, almost double the price 12 months ago. One reason for this is that due to the economy's recovery after the Corona pandemic. Demand for the light metal has increased enormously, especially in China and the United States. More crucial, however, is the fact that copper's electrical conductivity and good workability make it one of the most important building blocks for the accelerated global energy transition. Without copper, the electrification of transport and the expansion of infrastructure and renewable energies will come to nothing. The production of a wind turbine consumes 30 tons of copper per turbine. In 2020, 420 turbines were installed in Germany alone, and the German government's plan sees the expansion of wind power as a key to climate neutrality by 2045 at the latest.

Tight supply

An extremely tight supply counters strongly rising demand. Already in 2019, there was a shortage of 383,000 tons on the market. In 2020, the supply deficit rose to 559,000 tons, the highest level in more than 10 years. In the past decade, there were hardly any new projects due to the weak copper price and thus profitability for mining companies. Currently, the global demand is satisfied by only 10 large and 20 smaller mines. Bank of America calls for a price target of USD 13,000 for the copper price; the commodity analysts at Goldman Sachs are going even further out on a limb - in addition to a possible target of USD 15,000 per ton, they proclaim the new "copper age." Thanks to the global green revolution, "copper is the new oil."

Shares with leverage

The shares of the largest copper producers have jumped significantly since last spring. Industry leaders such as Freeport McMoRan, Glencore and Co. have already multiplied. However, due to the weak price of copper, these are still far from their historic highs. On the other hand, securities of smaller mineral exploration companies have participated less vigorously in the price trend. They, therefore, have leverage for disproportionate price gains with a continuing strike price. A more than promising Company is GSP Resource, a mineral exploration and development company focused on projects in southwestern British Columbia.

The experienced management, with a historical track record in resource development and financing, secured an option to acquire a 100% interest in the Alwin Mine, a copper-gold-silver project located in the Kamloops Mining Division, 18 km west of Logan Lake in British Columbia. The interesting part is the location. The Alwin mine borders the Highland Valley mine of industry giant Teck Resources to the west.

Successful Drilling Programs

Last year's Phase 1 drill program has already demonstrated the potential of the Alwin Mine. Several shallow intercepts met or exceeded the average grade of the reported mineral resources at the adjacent Highland Valley Mine. Deeper drilling also encountered high-grade intercepts with grades of 1.29% copper equivalent over a distance of 14.1m. In the summer of 2021, the Company plans a drill program with five deeper targets.

In addition to the Alwin mine, GSP Resource owns another high potential asset, the Olivine Mountain project. The 3020-hectare property is located in the Interior Plateau area of south-central British Columbia, 25 km northwest of Princeton. Again, the strategy was to drill close to already producing mines. Only 25 km away is Copper Mountain's copper mine, just under 50 km away is Westhaven Ventures' Shovelnose project and Kodiak Copper's MPD project.

GSP is a potential Teck Resources takeover candidate simply because of its proximity if drilling programs continue to be successful. The Company currently has a market capitalization of only EUR 3.5 million and is traded in Toronto and Frankfurt. In addition to existing projects, management plans to expand the portfolio through further acquisitions focusing on British Columbia.

Long-term chip shortage

Intel's chief executive, Paul Gelsinger, anticipates a longer-term trend of chip shortages. Currently, the shortage has led to short-time work and production stoppages, particularly in the auto industry. In a Reuters interview, the Intel CEO cited the home office and learning at home in the wake of the Corona pandemic as a trigger. He said this, in turn, led to "explosive growth in semiconductors" and, as a result, extreme excess demand.

"Although the industry has taken steps to address the near-term bottlenecks, it could take several more years for the ecosystem to address the shortage of foundry capacity, substrates and components."

Nordex on a knife-edge

The weak quarterly numbers are still reverberating. News of two more orders from Finland and the Netherlands fizzled out, as did Nord LB's confirmation of a buy recommendation with a price target of EUR 30. The analyst emphasized above all the order development, which should be positive due to the expansion of wind energy. The chart-technical picture would brighten up somewhat after the last interim high at EUR 19.62 was overcome. On the downside, there is a risk of a significant sell-off at prices below EUR 18.20.


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.

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.


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  • Copper

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NIO, JinkoSolar, Siemens Energy, Nevada Copper - This is the copper sensation!

  • Copper

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BYD, Nordex, Kodiak Copper: The green revolution!

  • Copper

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