24. November 2021 | 10:13 CET
Nordex, Kodiak Copper, Xiaomi - Long-term trend
The current copper chart could have been copied from the textbook "Technical Analysis of Financial Markets" written by John J. Murphy. After a ten-year high at USD 10,720.15, the red metal corrected to the support zone at around USD 8,800. After several months of sideways movement, it is now heading north again. Once the USD 9,700 mark has been overcome, a new attempt to reach the five-digit range should only be a matter of time. Copper is in demand as never before and will remain so in the coming years.
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ISIN: NORDEX SE O.N. | DE000A0D6554 , KODIAK COPPER CORP. | CA50012K1066 , XIAOMI CORP. CL.B | KYG9830T1067
"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources
Kodiak Copper - Annual targets almost reached
Smaller producers and exploration companies are increasingly affected by the correction in the base price, but their performance is also much higher when the overall market is rising. That can be clearly seen in the example of the highly interesting copper exploration company Kodiak Copper. Despite successful drilling programs, the consolidation after the all-time high at the equivalent of EUR 2.35 is still not complete. In the long term, the stock should have significant upside potential based on the value of its projects. The founder and chairman of Kodiak is Chris Taylor, known for his successful gold discoveries at Great Bear Resources.
The Discovery Group company owns 100% of the Mohave copper-molybdenum-silver porphyry project in Arizona in the United States, not far from the world-class Baghdad Mine. In the highly prospective MPD, it has an ace up its sleeve, a 14,716 ha copper-gold porphyry project. MPD is located in the Quesnel Trough in south-central British Columbia, Canada, where Kodiak Copper has already discovered high-grade mineralization within a broad mineralized envelope. That high-grade discoveries in the area are no coincidence is shown by the fact that the producing mines of Copper Mountain, Highland Valley and New Afton are located in the immediate vicinity.
At the moment, about 22,000m have been drilled with two rigs; up to 25,000m could be drilled this year. This involved the extension of the prospective gate zone. Excellent results have already been achieved by extending the strike length by more than seven times to 950m in a north-south direction and an intersection of significant copper-gold mineralization with a thickness of 350m in an east-west direction down to a depth of 800m. Recently, impressive results were again reported from the Gate Zone.
In 9 drill holes, further insights into the mineralization of the porphyry target in the center of the zone were obtained. In addition, its margin also extended the zone to the south and west. Also important in the results was that the Gate zone remains open. Drilling at Gate identified strongly mineralized porphyry alteration patterns, sulphide zones, and structural controls of low-grade envelopes surrounding high-grade areas. Gate's successful approach is now expected to be applied again in the Dillard zone. A major 25,000m drill program is planned for 2022. Currently, Kodiak Copper had to stop the action at short notice due to flooding and roadblocks.
Xiaomi - Disappointment in the figures
The share of the Chinese technology group Xiaomi is also being severely shaken at the moment. After announcing the figures for the third quarter, the share sank more than 4% to EUR 2.30. Thus, there is a risk of further declining prices if the low for the year at EUR 2.22, which is not far away, is breached again on a sustained basis.
With revenues of EUR 10.83 billion, the group, which has risen to become the world's number two smartphone manufacturer, missed analysts' estimates. In addition, the profit declined by 84% to now EUR 109.54 million due to changed valuations of companies.
Smartphone sales, which rose marginally by only 0.5% to EUR 6.61 billion, were disappointing, while shipments fell by 5.8% to 43.9 million units. According to the Company, the main reason for this was global supply bottlenecks for key components.
Nordex - Caution order
After the disappointing third-quarter figures, the Hamburg-based wind turbine manufacturer is working to fill its order books again. Although Nordex is to deliver 11 wind turbines of 44 MW to RWE Renewables, including a 5-year maintenance contract, the stock is down 2%. The N149/4.X turbines of the Delta4000 series are to be installed at the "Nouvions" wind farm in the Departement Aisne.
"We are delighted that our long-standing customer RWE has helped us win our first order for Delta4000 series turbines in France," said Patxi Landa, COO Sales and Marketing at Nordex Group. "Nouvions will be one of the largest wind farms with Nordex turbines in the country in the process, with nearly 44 MW."
Copper is expected to continue its upward trend due to high demand from the renewable energy sector. Promising exploration companies such as Kodiak Copper should benefit thereafter. Xiaomi and Nordex, on the other hand, should let the storm pass for the time being.