Close menu




June 8th, 2022 | 13:50 CEST

Shares: Plug Power and BYD with exclamation points! Patience is needed at Nevada Copper

  • Copper
  • greenhydrogen
  • Electromobility
  • Mining
Photo credits: pixabay.com

Hydrogen or battery, which is better? This question is often asked. The answer is simple: both technologies will play an essential role in the energy and mobility revolution. While batteries seem to be gaining ground in the passenger car sector, hydrogen has numerous other potential applications, such as commercial vehicles and ships. Plug Power and BYD put exclamation points on incoming orders and vehicle sales. At the beginning of the value chain are commodity companies like Nevada Copper, which has now suffered a setback on its way to becoming a copper producer. However, the price slide could also represent an opportunity for investors.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , BYD CO. LTD H YC 1 | CNE100000296 , NEVADA COPPER CORP. | CA64128F7039

Table of contents:


    Nevada Copper: Making progress, but delays are a burden

    The raw materials for electromobility include not only lithium but also copper. Exciting in this area is Nevada Copper. The Company owns the Pumpkin Hollow copper project in the US state of Nevada and is currently making a move from explorer to producer. New management has been on board since the fall of 2021 and has been optimistic so far. CEO Randy Buffington said in the Q1 report, "I am very pleased with the progress we are making on several fronts at Pumpkin Hollow. We have completed several important projects on site aimed at improving productivity, mining line availability and equipment reliability at the underground mine. The update of the pre-feasibility study for the fully permitted open pit project is well underway and will include key sustainable initiatives such as the solar project. In addition, the commencement of our exploration program is an important step towards our longer-term growth strategy."

    Yesterday, however, Nevada Copper reported delays. Additional drilling is required in the East South zone of the underground mine due to previously unidentified rock structures. As a result, it will not be able to start producing larger volumes there until August and is looking to cut costs. In the East North zone, on the other hand, Nevada Copper is progressing according to plan. This is positive as this area has significantly higher copper grades and better geotechnical conditions. Management expects to have advanced to the larger and higher-grade deposits within the East North zone by the end of June. The open pit pre-feasibility study and drilling also continue to progress. Because of the delays, Nevada Copper needs new financing. Major shareholder Pala Investment is prepared to provide debt capital of up to USD 20 million. Additional funding is also currently being discussed. The transparent communication of the new management is positive, and such delays are not unusual for a commodity explorer. Due to the news, the stock lost significantly yesterday and is now trading below EUR 0.30 - in 2018, it was still above EUR 5. For investors with patience and courage, this could represent an entry opportunity.

    Plug Power: Successful in Asia

    Plug Power has delighted shareholders with numerous new orders in recent weeks. The latest success story comes from Asia. In South Korea, Plug Power's subsidiary SK Plug Hyverse has landed a government project. The client is the Korea Gas Corporation. SK Plug Hyverse is to build them a 1-megawatt PEM water electrolysis plant in the south of the island. In conjunction with a wind turbine, green hydrogen is to be produced and sold via charging stations. This is an initial pilot project. In addition, SK Plug Hyverse is building a fuel cell and water electrolysis plant in the west of the country. SK Plug Hyverse is a joint venture between Plug Power and the South Korean conglomerate SK Group. It seems to be well-positioned to benefit from South Korea's expansion goals. The South Korean government defined hydrogen as one of the cornerstones of its future industrial policy at the end of 2021. By 2040, a hydrogen economy worth USD 40 billion is to be created in the country. In Europe, Plug Power landed a major order in May. The Company will supply a 1-GW electrolyzer for the production of green hydrogen to H2 Energy Europe. The plant is to be built in Denmark. According to Plug Power, this is the largest electrolyzer order worldwide.

    BYD: Deliveries strong in May

    BYD's focus on electric mobility is paying off. At the beginning of the year, the Chinese vehicle manufacturer - offering passenger cars and commercial vehicles such as buses - announced that it would focus entirely on electric and hybrid models. The high demand proves BYD right: Deliveries climbed 148% YOY to 114,943 vehicles in May. This again surpassed the already strong figures from April with 106,042. A total of 512,363 vehicles were sold between January and May 2022. That is an increase of around 162% compared to the same period last year. These figures are all the more astonishing when one considers the repeated lockdowns in cities such as Shanghai. These were even more intense in recent months than in the actual Corona year 2020. Media reports show that BYD is preparing for a sustained high demand. Accordingly, the electric vehicle specialist is preparing to purchase six lithium mines in Africa. Because, unlike numerous competitors, BYD has its own battery production.


    The energy and mobility revolution is in full swing. Hydrogen and electromobility will play important roles in this. BYD and Plug Power are each top players in their respective industries. Nevada Copper has to digest a setback. But the share price reaction seems excessive if it is only a matter of a few months and financing can be secured. After all, copper is in demand as never before.


    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

    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.

    About the author



    Related comments:

    Commented by André Will-Laudien on September 22nd, 2023 | 07:20 CEST

    Recalculation! These are the bare figures: TUI, Saturn Oil + Gas, Deutsche Bank - Buy prices non-stop!

    • Mining
    • Oil
    • travel
    • Investments
    • Banking

    Companies do not always have good figures in their baggage. Analysts listen very carefully to the words of those in charge. Often, it is only a minor sentence that changes entire valuations. TUI is slowly approaching pre-COVID figures. Saturn Oil & Gas must backtrack slightly because of substantial forest fires in Alberta, and Deutsche Bank aims to finalize the Postbank project in 2023. All three stocks offer good buying opportunities because the long-term prospects are quite convincing.

    Read

    Commented by Juliane Zielonka on September 22nd, 2023 | 06:50 CEST

    Cardiol Therapeutics, BioNTech, BYD - At top speed to new markets

    • Biotechnology
    • Pharma
    • Electromobility

    Cardiol Therapeutics is enjoying a remarkable development. The biotech company is now rolling out its ARCHER patient recruitment trial internationally at 35 participating centers. This accelerates research in the development of their therapy to combat myocarditis, a heart inflammation which has been associated with COVID-19 vaccination. For Cardiol Therapeutics, this represents an opportunity to get its therapy approved as an orphan drug. Approval is also at stake for BioNTech. With a multimillion-dollar funding boost, the Company is working on accelerated approval for a vaccine against a virus that caused quite a stir last year. The shortened development time is likely to impress investors. While business nations agree on fighting viruses, they disagree on commodities for the road. The EU would prefer to restrict BYD's successful sales on domestic roads - by imposing tariffs. BYD, meanwhile, is tapping into a completely different market.

    Read

    Commented by Juliane Zielonka on September 21st, 2023 | 07:55 CEST

    dynaCERT, Amazon, FREYR Battery - Those who are focused on CO2 reduction and successful at it

    • Hydrogen
    • greenhydrogen
    • Batteries
    • CO2

    At the Fleet Services Expo in Ottawa, dynaCERT will showcase its "Hydrogen-on-Demand" technology. For the first time, dynaCERT is demonstrating its fully functional HydraGEN™ technology on a company-owned Mercedes Sprinter Van, providing environmentally friendly hydrogen power to fleet vehicles in Ontario. This innovative solution reduces CO2 emissions and also lowers operating costs. On the other hand, as the upcoming seasonal business approaches, Amazon is increasing its workforce, most of whom use non-CO2-reducing vehicles to make deliveries in the US. A renowned institute has, therefore, removed Amazon from the CO2 index. Meanwhile, the Norwegian battery manufacturer FREYR Battery is moving to the US. The Company has filed its documents for incorporation in Delaware and sees a lot of benefits for business expansion and shareholders with its US location.

    Read