10. June 2021 | 09:58 CET
Silver Viper Minerals, Nordex, JinkoSolar - These shares are taking off!
Like gold, silver is a precious metal. Both are characterized by the fact that they do not rust. They have always been used for the production of jewelry and in medicine. However, since silver is much more abundant than gold, its price is many times lower. Currently, the ratio is about 1:70, so it was affordable even for less well-heeled investors, which earned it the nickname of the "poor man's gold." However, silver is also characterized by various physical properties that make it extremely valuable for industrial use today. Due to its excellent conductivity and catalytic properties, it is used in solar and battery production. As a result, the price has literally exploded over the past twelve months. Below are three promising stocks that are directly or indirectly related to the price of silver.
time to read: 4 minutes by Carsten Mainitz
"[...] In our experience, the local communities are supportive and friendly. [...]" Steve Cope, President, CEO and Director, Silver Viper
Silver Viper Minerals Corp. - Successful private placement creates price fantasy
CAD 6 million - this is how much the Canadian junior explorer Silver Viper Minerals announced at the end of May that it wanted to raise from investors in a private placement. Last week, the Company announced the closing of the first tranche of CAD 4.5 million. In this deal, which was arranged with the help of Haywood Securities, 9,717,061 new share certificates were distributed at CAD 0.47 each in connection with a half warrant. Both securities have a minimum holding period until October 2, 2021. One whole warrant entitles the holder to purchase one regular share of Silver Viper for CAD 0.65 until June 2022. If the Company had already made investors optimistic with the release of an initial NI 43-101 compliant resource estimate of its Mexican "La Virginia" gold-silver project, the news of the successful placement sent the share price directly to new highs around CAD 0.75. As a result, the Company is currently valued at around CAD 70 million. Warrants outstanding from previous financing rounds with an option price of CAD 0.50 could provide a further inflow of around CAD 3.5 million in the short term.
The Company believes it is well-positioned to continue drilling the promising El Rubi zone, which has an estimated indicated resource of 154,300 ounces of gold and 6,929,00 ounces of silver in addition to an estimated resource of 94,100 ounces of gold and 3,750,000 ounces of silver. It is hoped that this will attract a larger mining company that could then invest in Silver Viper. These are at least the plans of CEO Steve Cope, which he formulated in an interview with kapitalerhoehungen.de last April and which we consider to be quite conclusive. Thus, Silver Viper is a company that investors should have on their radar. As a junior explorer, there is always a higher risk, but the potential is, of course, much higher. The second tranche of the private placement for CAD 1.5 million is to be closed today.
Nordex SE - Breakout in sight?
Another industry with a high demand for silver is renewable energies, above all solar and wind power. One of the largest and best-known integrated manufacturers in the onshore wind turbine sector is Hamburg-based Nordex SE. This Company has been struggling with share price declines for some time. Since the beginning of the year, the share has corrected by almost 30% to currently around EUR 18. On the one hand, this has reduced previous share price exaggerations, but on the other hand, it has also taken into account the presentation of weaker quarterly figures. In particular, tightening climate targets of the sales countries and increased requirements for sustainability and efficiency criteria (e.g. the ISO standard 14044) are causing problems for Nordex. However, the manufacturer, around which merger and takeover rumors keep spreading, is still in the game.
Less than a week ago, the Company landed an excellent order: a wind farm in central Spain ordered 16 wind turbines with a total capacity of 76.8 MW. The plant is to be built from August 2022 and completed as early as December. This news was also received positively in analyst circles. The American investment bank Jeffries corrected its price target downwards by one euro from EUR 31 to EUR 30. It left its recommendation at "buy" because it had no reason to doubt the targets set by the Company for 2021 and described the current price level as a "good time" for an entry. We also expect the share price to recover in the long term.
JinkoSolar - Chinese top ten manufacturer continues price rally
JinkoSolar is ranked tenth on the list of the world's most important new energy companies. The group, which is one of the world's largest manufacturers of solar panels with 23 production facilities spread around the globe, is not only successful in terms of quantity. The Chinese are now also leading the way in terms of innovation. JinkoSolar is the first manufacturer to produce a solar panel with an efficiency of around 25% in mass production. And there is no need to hide in terms of quality. The German DEKRA recently certified the Tiger Pro product, a so-called double glass module, as having above-average durability even under the most difficult conditions.
The share price also reflected this but has since corrected again and is trading around 30% below its all-time high. Nevertheless, a long-term upward trend can be seen. Analysts currently give the share a price target of approximately USD 43, which corresponds to a potential of around 10%. However, we believe that there is much more to come in the long term. The energy turnaround has only just begun. To achieve our climate protection goals, we as a society will have no choice but to make solar systems mandatory in new buildings and renovations. Then it will be the turn of manufacturers to see who can deliver good quality at a reasonable price. The market is eagerly awaiting June 25, 2021, when JinkoSolar will announce its first fiscal quarter figures. The share price may pick up significantly after that.