Nordex, XXIX Metal, D-Wave Quantum – Demand is driving prices

Nordex – Three in one go

It is well known that copper plays a crucial role in wind energy, as it is an indispensable material for many wind turbine components. For example, an onshore wind turbine with a capacity of 4 MW contains around 5 tons of copper. The increasing demand for green technologies naturally increases the demand for the red metal.

Last week, one of the leading wind turbine manufacturers, the Nordex Group, was able to report a customized start to the new financial year with three orders. The first order comes from the Bremen-based project developer wpd, which has ordered turbines with a total capacity of 50 MW for locations in North Rhine-Westphalia, Lower Saxony and Schleswig-Holstein. Nordex will be supplying wind power systems with a hub height of 149 metres for this project. The order from Denker & Wulf is even larger: the Schleswig-Holstein-based project planner has ordered 25 turbines with a total output of 148 MW, including eight of the powerful N163/6.X models.

A real milestone is the major order from UKA, a leading developer of wind and solar parks. With an order for 80 turbines and a generation capacity of 540 MW, this deal is on par with a modern large-scale power plant. "The success of the energy transition is based not only on advanced technology but also on the close cooperation of all parties involved," commented Karsten Brüggemann, Nordex company representative.

XXIX Metal Corp. – Thesis confirmed

One company that stands to benefit from the growing demand for this critical metal thanks to its two outstanding projects, Opemiska and Thierry, is XXIX Metal Corp., valued at EUR 13.41 million. The Opemiska property, endowed with first-class infrastructure, is considered Canada's highest-grade copper resource and covers 13,000 hectares in the Chapais-Chibougamau region of Quebec, directly adjacent to Glencore and Vail's production facilities.

The latest resource estimate from last year showed a 16% increase in copper equivalent and a 10% improvement in grade, including 87.3 million tonnes at 0.93% measured and indicated copper equivalent and additional resources outside the pit. Recent drill results from the Saddle Zone include 11 m of 5.3% Cu and 1.20 g/t Au from 81 m.

The Saddle Zone is important because it lies between the past-producing Springer and Perry mines within the current open-pit concept as a transition zone described in the mineral resource estimate at the beginning of 2024. Management is currently working on determining the orientation of the veins and has been encouraged by the results of the drilling, which indicate the presence of a structurally controlled mineralized envelope trapped within a northwest-trending fault.

The new interpretation of the mineralization represents a significant improvement on the current Opemiska resource model, as it increases the volume and allows the area previously considered waste to be converted into ore. Future drilling at the Saddle Zone should then help to interpret the mineralization within and outside the vein and could significantly improve the economic viability of the Opemiska copper project.

D-Wave Quantum - Strong growth, ambitious valuation

Quantum computing stocks have been at the top of the list of winners in recent weeks, attracting increasing investor interest. D-Wave Quantum, a leading company focused on the development and commercialization of quantum computers and quantum-inspired solutions, has seen its share price rise by over 1,000% to a high of USD 11.41 since the beginning of November. Currently, the air is being let out of the overinflated balloon, with D-Wave shares losing almost 60% since then. Nevertheless, the market capitalization remains an incredible USD 1.55 billion.

These early accolades for the valuation become even more evident when looking at the reported figures. While the US company reported strong growth of around 120% with an increase in bookings in fiscal year 2024 to USD 23 million, a clear bubble effect can be seen compared to the market capitalization.

The Palo Alto-based company also announced that a customer has, for the first time, purchased a D-Wave Advantage™ Annealing quantum computing system. This represents a significant expansion of the Company's revenue model as it broadens its overall market offering to include the sale of on-site systems.

The first purchase of a D-Wave Advantage system by a customer - the world's largest quantum computer with more than 5,000 qubits and 15-way connectivity - is an example of the growing adoption of D-Wave's annealing quantum computing technology.

Copper is becoming increasingly important due to the expansion of alternative energy and the growing demand from data centres for the use of artificial intelligence. XXIX Metal owns two high-grade copper projects and could establish itself as one of the largest copper developers in Eastern Canada. Nordex was able to land three orders at the beginning of the year. D-Wave Quantum reported strong growth but is still ambitiously valued.