Close menu




March 10th, 2022 | 12:09 CET

Nordex, Phoenix Copper, E.ON - Under power

  • Copper
  • Electromobility
Photo credits: phoenixcopperlimited.com

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
ISIN: E.ON SE NA O.N. | DE000ENAG999 , PHOENIX COPPER LTD. | VGG7060R1139 , NORDEX SE O.N. | DE000A0D6554

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 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

    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 Fabian Lorenz on September 28th, 2022 | 11:22 CEST

    Time for bargain hunters? Plug Power, Varta and Pathfinder Ventures

    • Investments
    • Camping
    • RV
    • Electromobility

    Growth stocks are currently under particular pressure. But this can also create opportunities for bargain hunters. Perhaps in the case of Varta? The share has crashed sharply after a profit warning. Now, the first analyst has upgraded the share from "sell" to "buy". But even his reasoning does not sound like a new growth story. Plug Power also tends to live on the hope of growth. While the new production facility is technically a milestone, it needs more. In contrast, things are going well at Pathfinder Ventures. The still unknown tourism company is profiting from the camping boom in North America, and its valuation is anything but expensive.

    Read

    Commented by Armin Schulz on September 27th, 2022 | 11:01 CEST

    Kodiak Copper, Nordex, BYD - Copper price indicates recovery of the economy!

    • Mining
    • Copper
    • Electromobility
    • Battery

    Copper is considered a leading indicator of the economy. The red metal is built into almost all electrical products and is needed in many industries. If we compare the spot price of copper with the futures, we can see that the premium per metric ton has increased significantly. This is matched by the fact that China imported 8.1% more copper through August, despite the country's Zero-COVID strategy. In contrast, Chile, one of the largest copper producers, exported less than last year. So supply remains tight, partly due to demand from Europe, which is significantly expanding renewables. So today, we look at three companies around copper.

    Read

    Commented by Stefan Feulner on September 26th, 2022 | 10:28 CEST

    BYD, Globex Mining, Newmont, Freeport-McMoRan - Copper with doubling potential

    • Mining
    • Copper
    • Gold
    • Commodities
    • Electromobility

    The price of copper has lost around a third since March of the current stock market year. Investors are selling the metal, which is known as an economic barometer, due to global recession fears and concerns of a drop in demand. However, due to the great importance of copper with regard to the energy turnaround, the tide is likely to turn again soon. Mining companies and commodity traders are already warning of a massive shortage of the world's most important metal. Goldman Sachs expects the price of copper to reach USD 15,000 per ton by 2025, which would mean a doubling of the current level.

    Read