October 28th, 2021 | 12:52 CEST
Nordex, Standard Lithium, Central African Gold: Raw materials for the energy transition
The energy turnaround is supposed to save the climate and significantly reduce the consumption of fossil fuels. But what is often overlooked: In practice, this means that demand for other raw materials is rising massively. In the EU alone, demand for cobalt is expected to increase more than tenfold by 2030. Copper and lithium are also in hot demand. Nordex, for example, needs rare earths for the production of wind turbines. Standard Lithium benefits from the exploding demand for batteries and Central African Gold's raw materials are included in practically every future technology.
time to read: 2 minutes | Author: Fabian Lorenz
ISIN: NORDEX SE O.N. | DE000A0D6554 , STANDARD LITHIUM LTD | CA8536061010 , CENTRAL AFRICAN GOLD INC. | CA1523761098
Table of contents:
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
Tag cloud
Shares cloud
Central African Gold: Cobalt demand about to increase tenfold?
The numbers are impressive: The annual demand for cobalt is expected to increase more than tenfold to 34 tons by 2030 - in the EU alone and for the production of electric car batteries alone (source: Statista). The Democratic Republic of Congo accounts for 59% of global cobalt production. China accounts for 7% of the global output, and Canada for 6%. Cobalt is a transition metal that is mainly extracted as a by-product from nickel and copper ores. For Central African Gold, cobalt is the main product. Therefore, the stock should react soon.
The Canadian explorer focuses on promising copper, cobalt and nickel projects in the Democratic Republic of Congo. These are not only to be developed but also subsequently operated. The Company benefits from an experienced local management team led by CEO Yves Kabongo. The Company owns a total of six mineral concessions with a total area of 176 sq km. Of interest to ESG investors: the areas also include forests and farmland. In the case of the King Luba properties, Central African owns 100% of the concessions. In addition, there is an option to participate in the state-controlled Musefu Gold Project. This project has historical grades of 2.5m at 28.4 g/t gold and 11m at 8.1 g/t gold. Thus, the Company is not dependent on the development of one commodity but is well diversified. To be able to advance the development consistently, Central African carried out a financing round in September.
Standard Lithium: Strong market and takeover fantasy
Similar to Cobalt, demand is expected to grow strongly in the coming years. According to a study by consulting firm Roskill, lithium is likely to remain in short supply until 2031. The main reason is the use of lithium-ion (Li-ion) batteries in automobiles and energy storage applications (ESS). To counter the increasing supply deficit, lithium production would have to scale up significantly. In addition, new production sources would be required. Therefore, prices must continue to rise, if only to incentivize investment in research and exploration. Lithium stocks such as Orocobre, Livent and Standard Lithium should benefit from this. In addition to the fundamental reasons, takeover fantasy also plays a role in Standard Lithium. Speculation persists that a group like Albemarle or even one of the large battery manufacturers will make a takeover bid - sooner rather than later.
Nordex suffers
Nordex is suffering from high raw material prices and problems with global supply chains. The share of the German supplier of wind turbines has started a countermovement in recent days and is attempting to break out of the downward trend. A report from RWE comes at the right time. The energy giant has commissioned the wind farm Les Pierrots in France with a capacity of 26.4 MW. Around EUR 33 million was invested. The eleven turbines are type N117 2400 TS98 from Nordex. Although it is not a current order, it brings Nordex positive PR. Jefferies has also recently expressed a positive view. The investment bank analysts recommend Nordex stock as a buy with a target price of EUR 25. Nordex was able to present a solid order situation in the Q3 report.
It is becoming increasingly clear that the energy transition is leading to massive distortions in the commodity markets. Standard Lithium is benefiting from this. If positive exploration data continues to be published by Central African Gold, it should only be a matter of time before the share reacts. Nordex will likely continue to have a hard time, even though wind energy is fundamental to the energy transition.
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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.
The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.
