Power Metallic Mines, Siemens Energy, BYD: Some Benefit from Record Copper Prices, Others Struggle for Every Ton

Power Metallic Mines: A Commodities Gem With Strategic Potential

At the heart of Power Metallic Mines is the NISK project in Québec, an orthomagmatic nickel-copper-PGE complex – of which there are only around 20 in the world. While the average grade of a copper mine ranges from 0.4 to 0.6% copper equivalent, Power Metallic is in a league of its own with around 5%. The latest drilling results underscore this. Drill hole PML-26-116 intersected 36.42 m grading 2.83% copper equivalent, including 6 m at 12.38%. This exceptional concentration significantly reduces the need for equipment, personnel and energy. As a result, capital costs are considerably lower than for comparable projects.

Metallurgical tests show exceptional recovery rates. The figures stand at almost 98.9% for copper, 96.8% for platinum, 93.9% for palladium, 85% for gold and 88.9% for silver, as certified by the SGS testing laboratory. The mineralogy enables particularly efficient extraction, reducing operating costs and minimising technical risks. Added to this is the first-class infrastructure. There is a road accessible all year round, a Hydro-Québec substation in the immediate vicinity, and the nearest settlement is also not far away. The strategic importance is underlined by the metals involved. In addition to copper for the energy transition, the project contains significant quantities of platinum group metals, which are becoming increasingly important for defence applications. The Canadian government actively supports such projects with tax relief on investments in critical minerals.

The shareholder list reads like a "Who's Who" of the global commodities industry. Billionaires such as Robert Friedland, Rob McEwen, Eric Sprott and Gina Rinehart are on board. These experienced investors were not swayed by speculative promises, but by the hard figures. The latest funding round, totaling CAD 28.2 million at CAD 1.25 per share, was successfully completed in a challenging market environment. Several crucial milestones are on the horizon for the coming months. The mineral resource estimate is expected soon, and to be followed by the preliminary economic assessment (PEA). A planned NASDAQ listing could make the company accessible to institutional investors. The current valuation is significantly below net asset value.

Siemens Energy: Copper Demand and Strategic Direction

The energy transition is devouring copper. Siemens Energy consumes around 50,000 tonnes of the red metal annually, roughly 0.2% of global production. By way of comparison, the entire grid modernization sector currently consumes around 8.5 million tonnes annually. The planned expansion of 30,000 km of extra-high-voltage power lines in China by 2030 alone will require around 300,000 tonnes of copper per year. Each 400 kV high-voltage transformer requires 72 tonnes of copper in its windings. This shows that the quantities of material required for the expected "hundreds of thousands of transformers" in the coming years are enormous.

The strategic hedging effort is in full swing. In May, the supply agreement with Austrian specialist ASTA Energy Solutions was extended through 2032 – six years ahead of its original expiration date. At the same time, Siemens Energy is strengthening its digital portfolio through the acquisition of Northern Irish Camlin Group, which employs 650 people and generates around EUR 104 million in revenue. The company specializes in grid monitoring and data analysis. The transaction is expected to close later this year.

The North Sea Connector 2 project underlines the company's operational clout. A consortium that includes Siemens Energy is supplying a 2-gigawatt converter platform for 50Hertz. Around 95% of the value added by Siemens Energy's share of the project comes from German sites, with transformers from Nuremberg and switchgear from Berlin. The Group is investing several hundred million euros in the expansion of these plants. The project demonstrates how deeply Siemens Energy is embedded in the critical infrastructure of the energy transition and how much its operational capacities are now being called upon.

BYD: With Strong Sales Momentum

The Chinese electric vehicle pioneer BYD sold 440,293 electric vehicles (NEVs) in August, an increase of just under 18% compared with the previous year. The proportion of exports climbed to 43% of total deliveries. This enabled the company to at least partially offset the ongoing weakness in the Chinese domestic market. Competitors NIO, Li Auto and XPeng delivered 35,836, 37,679 and 39,107 vehicles, respectively. This illustrates just how large BYD is. Its commercial NEV sales actually rose by 225%, albeit from a low base of 6,909 units. To reach the lower target of 5 million total sales in 2026, the pace would need to be stepped up further.

Electric mobility is fundamentally changing the demand for raw materials. A fully electric vehicle requires an average of 83 kg of copper, which is significantly more than the 23 kg used in internal combustion engines. Extrapolated from BYD's estimated 3 million fully electric vehicles in 2025, this results in a copper requirement of around 249,000 t, accounting for approximately 1-1.5% of global production of 23 million t. Industry analysts forecast that copper consumption in the automotive sector will rise from 1.7 million tonnes today to 4.3 million tonnes by 2035. This represents an annual growth rate of approximately 10%.

BYD is driving forward its battery research with six new patents in August, focusing on dual-electrolyte cathodes and interfacial stability. At the same time, the plant in Szeged, Hungary, is set to commence production in the fourth quarter, while a second European site is under consideration. BYD is developing specific models for the European market, such as the Dolphin G DM-i, a plug-in hybrid city car priced from EUR 28,990 with a range of over 1,000 km. Vertical integration in batteries and semiconductors is proving to be a decisive competitive advantage. However, the price war in China and high investment in international expansion are putting pressure on the group's margins.

The copper shortage is becoming a strategic issue. Power Metallic Mines, with its NISK project, owns a world-class asset which, due to its high grades, has attracted the interest of industry giants. Siemens Energy is already securing its copper requirements for the coming years through long-term contracts and can work through its substantial order book at its own pace. BYD is relentlessly driving forward its expansion and technological transformation. The structural gap in the market remains, and those who fail to plan today will find themselves at the mercy of the commodities markets tomorrow. Copper is the new oil, and securing the supply chain is becoming a top priority.