Close menu




February 2nd, 2022 | 13:48 CET

Nordex, Nevada Copper, JinkoSolar: Earning in the copper decade!

  • Copper
Photo credits: pixabay.com

According to a 2020 study by the International Copper Study Group (ICSG), Chile, Peru, China and the US were the largest copper producers in the world. Other significant deposits can be found in Australia, Indonesia, Russia, Canada, Zambia, Poland, Kazakhstan and Mexico. While most mines have copper concentrations between 0.2 and 0.8%, there are even deposits in Central and South Africa that can contain 5 - 6% copper. In Europe, the largest copper deposits are found in Russia and Poland. Expert opinions differ considerably when calculating the copper market for the next few years. According to a study by Wood Mackenzie, primary copper demand will increase by 30% to about 25 million tons by 2030. And ore is already in more than short supply today. Where are the opportunities for investors?

time to read: 3 minutes | Author: André Will-Laudien
ISIN: NORDEX SE O.N. | DE000A0D6554 , NEVADA COPPER CORP. | CA64128F7039 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007

Table of contents:


    Ryan McDermott, CEO, Phoenix Copper
    "[...] If we pursue our goals conscientiously, the market will adjust its valuation accordingly, I am sure. Often, all it takes is a trigger. [...]" Ryan McDermott, CEO, Phoenix Copper

    Full interview

     

    Nevada Copper - Now the mine expansion can go ahead as planned

    The energy transition and the increasing number of electric vehicles in the next few years are long-term drivers for copper demand. If infrastructure and construction plans from China or the USA, for example, remain in place for a longer period of time, this will also support copper demand. Because of its unique properties, there is also no substitute for the reddish metal.

    Not far away from providing new copper supplies is the Canadian producer Nevada Copper. The Company's Pumpkin Hollow project is located in the US state of Nevada and has significant resources in copper, gold and silver. Two fully-permitted projects include the high-grade underground mine and processing plant, now in the production phase, and a large-scale open pit project moving toward feasibility in the current year.

    The Company already completed a significant refinancing in 2021, with German KfW on board, making further debt commitments alongside core investor Pala Investments. On the equity side, a further CAD 144 million was raised. At the end of January, an extraordinary general meeting approved the exercise of 15 million warrants by Pala Investments. The agreement was part of the committed 2021 financing, and now the development of the open pit mine can proceed as planned.

    NCU shares are currently trading in the CAD 0.70 - 0.80 band following the rollback into 2021. The new copper supplier is valued at CAD 336 million on the stock exchange. With the successful start-up of the open pit mine, 2022 could be a successful year for Nevada Copper.

    Nordex SE - The recovery now after the sell-off

    Wind turbine manufacturer Nordex is a major processor of copper and other metals. The current price increases are not without effect. The price movement at the beginning of the year already looked like a real recovery, but then came the figures of rival Vestas, and it went down again briefly. The harsh profit warning from Siemens Gamesa caused an ad hoc broad sell-off in the wind sector, but prices stabilized again across the board.

    However, the profitability of the wind turbine manufacturers remains a problem because, on the procurement side, prices have increased so much that the promised installations hardly bring any more profit into the books after completion. In some cases, there are also considerable delays due to disrupted supply chains, which puts permanent pressure on the EBIT margin. However, this problem will be solved in the medium term through new price calculations.

    In recent weeks, the operating picture seems to be brightening again. Large orders are arriving as governments now want to systematically implement their climate protection programs. On March 29, investors will learn more about the progress in fiscal 2021. Hopefully, there will be an indication before then in which direction the markets should direct their expectations.

    Currently, Nordex stock is trading in the range of EUR 13.70 to 14.10 in an important resistance zone to the upside. The recently reached low at EUR 12 should now no longer be seen after the strong recovery movement because the mood among investors is also much better than in the challenging transition year 2021. Collect cautiously!

    JinkoSolar - The green turnaround is becoming a self-runner

    Another prominent representative from the renewable energy generation sector is the Chinese Company JinkoSolar. Its operating subsidiary Jiangxi Jinko was recently listed on the stock exchange, and demand was very high. On the first trading day, January 26, 2022, Jiangxi Jinko shares closed at 10.55 yuan per share, up 111% from the IPO price of 5 yuan. Parent JinkoSolar Co. Ltd. had issued a total of 2 million shares, accounting for 20% of the total 10 million shares outstanding after the IPO.

    With the capital raised, the group can now scale and grow. Access to equity capital will boost competitiveness enormously, especially in an environment of rising inflation and interest rates. Jinko will strengthen its leading position in the global PV industry through this refinancing. The share was one of the losers in 2021, with an annual loss of a good 20%.

    With the strong commitment of international governments to the Glasgow climate change targets, JinkoSolar's business has become a no-brainer. Currently, the Company has the most efficient modules, and its factories are running at capacity for several months. After a short slump to EUR 34.50, the stock went back above EUR 39.00 at the beginning of February. The GreenTech rally is rolling along again, and Jinko should continue to lead the way!


    At the beginning of the year, investors are once again repositioning themselves. The winning sectors of 2021 will not necessarily be in demand in 2022. Currently, GreenTech seems to be attracting good investor demand. The share of Nevada Copper thus remains in focus, and the classic copper demanders, Nordex and JinkoSolar, are also currently attracting a lot of attention.


    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by Armin Schulz on May 17th, 2022 | 10:29 CEST

    Varta, Nevada Copper, E.ON - Shares for the electrification of tomorrow

    • Copper
    • Electromobility

    More and more people are gaining access to electricity. In order to make this possible, copper is needed because this industrial metal is the best conductor of electricity. Due to the upheaval in the energy industry towards renewable energies and the electrification of vehicles, demand is increasing. Supply cannot keep pace. Although 2021 copper production has increased by 2.2%, it is only 0.3% above the pre-Corona level. That explains the significant increase in copper prices, and we can expect a supply deficit in 2022 as well. We look at three companies for the electrification of tomorrow.

    Read

    Commented by Carsten Mainitz on May 4th, 2022 | 13:57 CEST

    Phoenix Copper, Glencore, Rheinmetall - High demand is intact

    • Copper
    • commodities

    In its latest report, the World Bureau of Metal Statistics (WBMS) provided an interesting insight into the general conditions of the metal markets at the beginning of the year. According to this report, there is still a global demand surplus for copper - just as there is for lead and nickel. In the first two months alone, the deficit already amounted to 83,000t of copper, up from 476,000t in 2021. In contrast, mine production rose by just 2.8% in January and February. However, coal and defense products are also currently in demand globally.

    Read

    Commented by Stefan Feulner on May 4th, 2022 | 10:22 CEST

    BYD, Nevada Copper, XPeng - New opportunities for copper shares

    • Copper
    • Electromobility

    After a brilliant year on the stock market in 2021 and reaching new 10-year highs, the copper price reached new highs again at the beginning of March, after the start of the Ukraine conflict. Since then, the base price has been correcting at a high level. However, due to the plan of politicians to practice an even faster switch to renewable energies, the demand for the elementary red metal is increasing significantly. Experts forecast a new supercycle for the next few years. Producers of the scarce commodity are the primary beneficiaries of this trend.

    Read