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Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


Karim Nanji, CEO, Marble Financial

Karim Nanji
CEO | Marble Financial
1200-1166 Alberni Street, V6E 3Z3 Vancouver (CAN)

info@marblefinancial.ca

+1-604-336-0185

Interview with Marble Financial: Fintech innovator plans expansion into the US


15. March 2021 | 08:51 CET

TESLA, NIO, Kodiak Copper: E-mobility drives the copper price!

  • Copper
Photo credits: pixabay.com

The copper shortage continues as demand continues to rise steadily. The battery of an electric car uses about three to four times as much copper as a conventional combustion vehicle. It should also not be forgotten that the charging infrastructure's construction also requires considerable amounts of copper. And growth in renewable energies is also driving demand. Last year, the largest copper mine in the world was again the Escondida mine in Chile's Atacama Desert. With a production of 1.2 million tons, it alone accounts for about 5% of global output. However, Chile will not be able to meet the world's copper demand on its own.

time to read: 3 minutes by André Will-Laudien


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author


Tesla Inc - The first wave of correction has taken place

The first correction wave has been completed. Tesla shares rose as high as USD 900 in January, and last Wednesday, they temporarily stood at USD 570. The correction of a considerable 37% in 4 weeks cost a market capitalization of USD 180 billion, which is more than the valuation of all German car manufacturers together. Bubbles can burst so quickly. We had warned about Tesla stock many times in this space - and no, the stock is still not a buy.

A little more rationality is at least returning to the e-mobility sector, even if this word is still far from fitting the current valuations. After all, some analyst firms are already blowing the whistle on the stock again. Mizuho's Vijay Rakesh set a USD 775 price target for Tesla, saying the Company remains a global leader in the e-mobility sector with its vertically integrated manufacturing, advanced battery and driver assistance system, everlasting innovations and remarkable market presence. Undeniably, Tesla is at the forefront of arguably the most significant automotive transformation in the last 100 years, but the industry is not sleeping (anymore).

In our opinion, the calculation is made here without the world market leader in technological vehicle manufacturing: Germany. For 100 years, the best automobile has come from Germany, and Tesla may still have 24 months to enjoy its leading role in the e-sector. By then, at the latest, "Made in Germany" will have recaptured the market, and European consumers will be firmly back on board. Where the Tesla share will stand then is not something we are philosophizing about today.

NIO - Valued completely irrationally despite correction

The first correction was also noticeable for NIO. It went from a high of USD 67 back to USD 36, then on Friday it was again up to USD 45. So the correction cost 46%. We should add that the stock was about USD 2.50 in March 2020 and then gained about 2680%. So it outperformed even the crazy Tesla stock.

NIO disclosed its fiscal 2020 fourth-quarter numbers in early March. For fiscal 2020, they reported a loss per share of CNY 4.74. Analysts had, on average, tipped a loss per share of CNY 3.82 here, compared to a loss of CNH 11.08 per share in the corresponding period before. NIO posted total sales of CNY 16.26 billion (equivalent to around USD 2.5 billion) in the past fiscal year, which was in line with expectations. Here, experts had expected CNY 16.22 billion, following revenue of CNY 7.82 billion generated in the previous year.

NIO's 2020 figures give it a price-to-sales ratio of 21, while Volkswagen (VW) has a ratio of 0.37 and still generates about EUR 10 billion in profit. As a side note, VW sells 100 times the number of cars with a rapidly increasing electric ratio. Decide for yourself!

Kodiak Copper - An emerging copper explorer

The most important commodity for the e-mobility and energy industries is the copper market. Remarkably, only 2 of the top 10 copper mines have started operations this century. The Buenavista mine in Mexico has been mining copper for 120 years. Fundamentally, copper grades at existing mines are dropping significantly, and in this market situation, copper companies are facing rising demand. Therefore, analysts at BMO Capital Markets forecast that the supply deficit will increase to around 3 million tons per year by 2025. That's about one-seventh of today's global market.

Canadian explorer Kodiak Copper owns a promising project in the Gate Zone, close to well-known mines such as Copper Mountain, Highland Valley and New Afton. The MPD copper-gold porphyry project is located in the prolific Quesnel Trough (BC). In addition, they are also exploring the Mohave copper-molybdenum-silver porphyry project in Arizona (USA), near the world-class Bagdad mine. Exploration work will continue in 2021.

Kodiak Copper shares began trading in early March on the OTCQB marketplace under the symbol KDKCF, in addition to the TSX. Claudia Tornquist, Kodiak's President and CEO, said, "Our new OTCQB listing will provide increased access to a large U.S. investor base. With greater liquidity and ease of transaction, it will allow U.S. based investors to participate directly in Kodiak's continued growth."

Kodiak's stock is currently priced at CAD 1.60. With very few prospective copper projects, Kodiak Copper is an attractive option for the current commodity shortage.


Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author



Conflict of interest & risk note

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Related comments:

12. April 2021 | 07:50 CET | by Nico Popp

NIO, Varta, Nevada Copper: Where the best opportunities lurk in the value chain

  • Copper

The theory around value creation is simple: the more a raw material is refined or processed, the greater the margin a company can ultimately achieve. While a kilo of Kobe beef fillet costs around EUR 400, a savvy chef will conjure up ten dishes from it and take in four-figure sums. There are many reasons to invest at the end of the value chain, but the risk also increases. If the chef cannot cook, he will not make sustainable sales even with the best ingredients. The situation is similar in the value chain around electromobility.

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07. April 2021 | 09:30 CET | by Carsten Mainitz

BYD, Kodiak Copper, Varta - Buying rate?

  • Copper

Electromobility, energy and digitalization are continuing as a trend. Even if some prices have run hot in the meantime, the current price consolidation offers tempting entry opportunities. With the three shares presented, investors can bet on different facets of the trend. Which stock offers the most significant potential?

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06. April 2021 | 10:22 CET | by André Will-Laudien

Sierra Growth, BYD, Ballard Power - Copper versus hydrogen!

  • Copper

Emission-free mobility - who will make the race? In the last 3 weeks, there have been strong movements in battery metals. Nickel almost doubled to USD 19,500 within 12 months, followed by a correction to USD 16,000 in April. Copper fared better. Here the price fell back from USD 9,500 to USD 8,750. However, the gain over the year for both metals is still just under 100%. In the first quarter of 2021, there was a jolt in the development towards e-mobility because VW blew the big attack against Tesla. After all, VW sells 10 times more cars than its Californian competitor, and now the battle for electric customers is really getting underway...

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