Close menu

March 10th, 2022 | 12:09 CET

Nordex, Phoenix Copper, E.ON - Under power

  • Copper
  • Electromobility
Photo credits:

The Ukraine war is making the stock markets nervous. Once again, we realize that normality can end overnight. Massive sanctions have hit Russia. The dependence on our eastern neighbor for energy and raw materials is becoming abundantly clear. The oil and gas prices are soaring, which again strengthens the desire to rely on renewable energies. The growth of electromobility should gain further momentum due to current developments.

time to read: 3 minutes | Author: Carsten Mainitz

Table of contents:

    Nordex - Theoretically a winner

    The Americans are suspending Russian gas and oil imports, and Russia is threatening to turn off the gas tap at Nord Stream 1. One industry that should benefit from this is wind energy. This includes the Hamburg-based Nordex Group, one of the top three suppliers of onshore wind turbines. Nevertheless, the share price fell after the publication of the latest quarterly figures, even though the Hanseatic company was able to significantly increase sales and order intake compared to the same period of the previous year and even exceed its forecasts.

    The reason for this is that there are problems with profitability. EBITDA has almost halved from EUR 90 million to EUR 50 million. No further details can be elicited from Nordex's preliminary announcement. But that is news in itself. One thing is clear: 2022 will again close with a loss. The Group is therefore working flat out to get costs under control.

    It recently announced the upcoming closure of rotor production in Rostock in June 2022 because customer demand has shifted to larger rotor blades that can not be produced at the site in Mecklenburg-Western Pomerania. A social plan is to be drawn up with the works council for the approximately 600 employees.

    Phoenix Copper - A budding copper producer

    Phoenix Copper is a budding producer of base and precious metals. The Company's primary operations are located in the US state of Idaho in the Alder Creek mining district. The Empire copper-oxide open pit project is the Company's principal asset. In 2013, 80% of the project was acquired, and the original acreage was significantly increased to approximately 32 sq km through acquisitions in subsequent years.

    The target is to start production in the first half of 2023. Over a period of 10 years, revenues are expected to reach USD 836 million. The required investment costs of USD 52 million are expected to be recouped within 2 years. As less than 1% of the potential ore system at Empire has been explored to date, there is a good chance of greatly increasing the resource through further exploration work.

    In addition, Phoenix Copper owns the historic Horseshoe, White Knob and Blue Bird mines, all of which have historically produced copper, gold, silver, zinc, lead and tungsten from underground mines. At Red Star, 330m northwest of the Empire Mine, the discovery showed high-grade silver/lead sulfide ore.

    The Company is planning a 3,000m drill program to further explore this system in the current year. Analysts at SISM Research have high confidence in the stock and formulate a price target almost 3 times the current quote. The stock market value is currently USD 72 million.

    E.ON - Nervousness

    In order to increase political pressure on Putin, the world has put together a tough sanctions package. It should not be forgotten that Russia is a very important gas supplier. Now that the Nord Stream 2 pipeline project has been stopped, more and more politicians from Europe are also calling for Nord Stream 1, in which E.ON holds a 15% stake, to be cut. Russia is also currently considering cutting off supplies.

    The German Association of Energy and Water Industries (BDEW) recently issued an urgent warning against an embargo on Russian energy supplies. The loss of supplies from Russia would have a "massive negative impact on the German economy and also on consumers," said BDEW head Kerstin Andreae. Germany cannot replace its most important trading partner for gas overnight.

    The urgently needed diversification will take a long time. The prices that have shot up will soon fuel inflation once again. After a sharp drop in the share price in recent days, the shares have recently recovered somewhat, also in the wake of positive analyst comments.

    Due to the war in Ukraine, the issue of supply security is at the top of the agenda. The diversification of energy sources and the expansion of renewable energy sources will be positive for Nordex and E.ON in the long term. With the growth of electromobility, copper producers will benefit massively. Phoenix Copper is a good choice here.

    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.

    For this reason, there is 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 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

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

    Related comments:

    Commented by Juliane Zielonka on November 30th, 2023 | 07:00 CET

    Growth Industries in Focus: Investors see potential in Defense Metals, BASF and Volkswagen shares

    • Mining
    • Tungsten
    • RareEarths
    • Electromobility

    Investors are looking for opportunities in growing markets. Looking at industries currently requiring rare earths - such as energy, defense, electromobility, and many more - leads to the mining sector. Someone has to supply the valuable raw materials so these industries can continue growing. Defense Metals' Wicheeda project in Canada shows promising results, particularly the increase to 6.4 million tons with a TREO content of 2.86%. BASF secures EUR 124.3 million in government funding for a green hydrogen plant in Ludwigshafen, planned in collaboration with Siemens Energy. Volkswagen is facing challenges, emphasized by VW board member Thomas Schäfer, who announced tough cuts to maintain competitiveness without closing plants. Volkswagen will have to respond to change with a more agile approach, especially as China advances in electromobility.


    Commented by Fabian Lorenz on November 22nd, 2023 | 07:20 CET

    BYD with "Tesla killer", JinkoSolar with sales record, and Klimat X Developments with milestone payment

    • Sustainability
    • climatechange
    • Electromobility
    • renewableenergies

    BYD is currently bursting with energy. The Chinese company is rushing from one sales record to the next. To ensure this continues in the coming year, BYD has unveiled two new "Tesla killers". The mid-range SUVs are designed to make life difficult for the Model Y. For those without a climate-neutral business model, CO2 certificates can be purchased from Klimat X Developments. The Company has just received a milestone payment. When will the shares of the innovative company benefit? JinkoSolar shareholders also need to be patient at the moment. The share is not taking off despite the solar group doing well operationally. While the Chinese have reason to celebrate, another competitor disappoints once again.


    Commented by André Will-Laudien on November 21st, 2023 | 07:15 CET

    Attention: New battery technology in demand! Freyr Battery, Manuka Resources, Varta and IBU-tec in focus

    • Mining
    • BatteryMetals
    • Electromobility
    • climatechange

    Despite all ecological reservations, the electrified future is advancing. In an effort to combat climate change, politicians have decided on the complete electrification of the future. The plan to entirely displace fossil fuels will lead many countries into a new economic dimension that will outperform conventional economies for a long time. However, a beautiful, new world must be economically affordable. This requires significant technological advancement and a tremendous amount of money for the transformation; ideological thinking helps little in this regard. Central Europe, in particular, is an importer of raw materials and energy and is a long way from setting world-changing parameters. However, since everything has already been decided in Berlin, millions of batteries and stationary energy storage systems are now needed for the green transformation. The key here is access to the critical metals of the future. These strategic decisions are being evaluated in the stock market. It is worth doing the math.