April 7th, 2022 | 14:30 CEST
Phoenix Copper, Nordex, Tesla - Gold rush mood at the beginning of the supply chain
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"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources
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Phoenix Copper - Gold rush in raw material sourcing
With the current market shifts in commodities, explorer companies such as Phoenix Copper Ltd. are increasingly coming to the attention of investors. Explorers are publicly traded companies whose mission is to explore resource-rich areas to provide access to the resources that may exist there. The better the explorers' team is positioned, the faster they will find what they are looking for in the areas they manage and explore. The current world market situation is particularly ideal for copper. The limited commodity is in high demand in industry. Copper is used in the construction industry and in renewable energies such as wind power and solar energy. Copper is also found in many places in the electric car industry, especially in batteries.
CEO Ryan McDermott has over 25 years of experience in base and precious metals mining. The heart of the precious metal hunters is the site around the former Empire Mine in Mackay in the heart of Idaho, USA. They are leading a drilling program to analyze copper, gold, silver and zinc resources. Their goal is to bring the former mine back online. Since they started exploring the areas in 2017, they have made discoveries. That is why Phoenix Copper is starting to raise liquidity; it is then to commission the Empire Mine to lift the mineral resources. The Company plans to raise about USD 60 million by issuing non-convertible debentures, repayable within ten years. If you want to profit from the copper and gold rush like in the old days, investors should look closely at this stock; its price is relentlessly bullish.
Nordex - Good things come to those who wait
A single wind turbine contains approx. 25 - 30 tons of copper. Put simply: without copper, there is no wind energy. In the rotor giants, copper is in the generators, cables, and coils. Renewable energies have become an integral part of the energy production and supply ecosystem. Recently, the German Council of Economic Experts published an economic forecast in which it describes various scenarios of what Germany would face in the event of a gas and oil supply freeze from Russia.
In short, things do not look so rosy. In the short term, only coal-fired power would be able to bridge the shortfall. They point out that "in the area of electricity supply, an accelerated expansion of renewable energies and storage options will only provide a remedy in the medium to long term, i.e. in a few years." The Nordex share is up in price this week, but hacker attacks, plant closures, and margins are putting the brakes on shareholder joy. With a power producer like Nordex, one thing to watch is whether the group can get its supply chains back on track. The price increases in procurement costs are also creating an additional burden. That raises the question of who ultimately has to pay these costs.
With five new laws (EEG, WindSeeG, EnWG, BBPIG, NABEG ) on renewable energies (RE), the German government is also causing a jolt in the mix of supply and demand. In order to achieve the RE expansion targets, the tender volumes will be increased: for onshore wind to 10 gigawatts (GW) (from 2025). The expansion targets for offshore wind are increased to at least 30 GW in 2030, 40 GW in 2035 and 70 GW in 2045. Nordex is developing into an investment from which one's children and subsequent generations can benefit. Loosely based on stock market guru André Kostolany (1906-1999), "Buy shares, take sleeping pills and do not look at the papers anymore. After many years you will see: You are rich."
Tesla - Elon goes rogue, a stock shoots up
Imagine you are the CEO of arguably one of the most hyped electric car manufacturers. You have just officially inaugurated the new Tesla Gigafactory production plant in Grünheide near Berlin, creating numerous new jobs in the region. Politicians are thanking them, applauding and celebrating them. You want to celebrate it too! So you go to the hippest club in town, the Berghain - and reap a German "NO". You do not get in. As a rule, you stand in line for two hours in the Berlin cold until the bouncer finally pats you down.
Only insiders know whether it happened that way. Elon Musk, on the other hand, interpreted the hard door as an "Oh, I didn't want to go in there anyway," as he wrote in his tweet. The fact that Teslas are now being built near Berlin becomes a sideshow in light of his latest coup. Because Elon Musk continues to screw his own PR machine, this week, for example, it became known that he had secured 9.2% of the shares in the short message service Twitter. A day later, Twitter CEO Parag Agrawal welcomed the Tesla CEO as Twitter's newest board member.
While Twitter investors celebrate their stock price rise, Tesla investors seem rightly concerned. The more hats Mr. Musk puts on, the less focus there is on Tesla's actual core business: advancing his Company's economic growth. However, anyone who can influence the crypto market with a tweet like Elon Musk could do the same for the Tesla share price. How long this will go on without regulators sounding the alarm is just a question of time.
While Tesla CEO Elon Musk dances on many highs, the Nordex Group struggles with hacker attacks and regulations, and one player in the supply chain of raw materials stands out. Phoenix Copper Ltd. is focused on the future startup of its Empire Mine in Mackay, Idaho, USA, to produce gold, silver and copper at a rapid and cost-effective pace. Drilling there is promising.
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