The Metal of the Energy Transition: Avrupa Minerals and Barrick with Upside Potential, BYD Under Pressure

Avrupa Minerals – Clever Business Model with Enormous Leverage

The Canadian exploration company focuses on discovering critical raw materials in Europe. In doing so, Avrupa Minerals stands out positively with a clever business model. The Prospect Generator model it pursues offers innumerable advantages and provides enormous leverage for investors, even more so given the low market capitalization of CAD 5 million.

The Canadians specialize in discovering new mineral deposits but do not fully develop or mine them themselves. This means the company secures exploration rights, identifies potential deposits, and brings partners on board for the capital-intensive further development. As a result, Avrupa Minerals holds a smaller stake in the project, but the pie is bigger. Additionally, this avoids significant dilution for shareholders.

The company focuses its activities on politically stable and resource-rich regions of Europe. A particular focus is on the industrial metals copper and zinc. Currently, the company is advancing an ambitious exploration program in Central Finland together with its partner Akkerman Exploration. The program centers on seven copper-zinc target areas and a gold project. A key focus is on the country's Pyhäsalmi mining district, which is well-established and has existing infrastructure, thereby reducing investment risks and significantly increasing the economic attractiveness of the projects.

The exploration area consists of two sub-areas. Lippikylä borders directly on the Pyhäsalmi mine, lies less than 2 km from the shaft, and covers the potential southern extension of the ore system. The Lehto area represents the potential eastern continuation of the mineralization. Historical data suggests at least five target areas for future drilling.

The goal is to prove at least 10 million tons of copper-zinc ore within an economically viable transport distance to the Pyhäsalmi mine. The facility has an annual processing capacity of 1.2 to 1.4 million tons of ore. The Canadian company is currently actively seeking joint venture partners to advance the project.

In addition to Finland, Portugal plays a major role for Avrupa Minerals. There, the Canadians own 100% of the Sesmarias copper-zinc project. The application for a mining license has already been submitted to the relevant authorities. In addition, the company holds a 49% stake in the Slivova Gold project in Kosovo, which is under option to Western Tethyan Resources.

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Barrick Mining – Greater Focus on Copper

The Canadian mining group has significantly expanded its strategy in recent years and is increasingly positioning itself as a major player in the copper sector. This focus will intensify further, particularly with the planned spin-off and IPO of its North American gold assets by the end of the year. The world's third-largest gold producer is thus betting on the "metal of the energy transition." Copper plays a key role in renewable energy, electric mobility, and infrastructure.

The most important copper asset is the Lumwana project in Zambia. The mine is one of the largest copper mines in Africa and is undergoing continuous development to extend its mine life. In Pakistan, the company is developing the Reko Diq project in partnership with the Pakistani government. Production is expected to begin in the coming years, which would make the Canadian company one of the world's leading copper producers. Additionally, the company operates the Jabal Sayid copper mine in Saudi Arabia as part of a joint venture. The underground mine produces high-grade copper concentrate and represents an important source of cash flow.

The stock is currently trading at around USD 40, valuing the group at just under USD 70 billion. According to market estimates, the value of the gold assets to be spun off is expected to be at least USD 40 billion. The key figures support a favorable valuation. The 2026 P/E ratio stands at 10.1, and the 2027 P/E ratio at 8.5. In addition, the group recently significantly increased its dividend payout ratio and ramped up share buybacks, driven by strong profits and cash flows. Analysts expect the stock to have an upside of a good 40% to USD 57.50 over the next 12 months.

BYD – Sales Decline of Around One-Third

In principle, one would expect a growing market for plug-in hybrids and electric vehicles in an environment of high fuel prices. However, BYD's latest production and sales figures tell a different story. This is primarily due to company-specific reasons. The Chinese automaker has been facing a massive price war in its domestic market for some time. A deliberate reduction in sales in the home market and accelerated international expansion constitute the company's strategic response to these conditions.

According to the latest company reports, production of New Energy Vehicles (NEVs) in March 2026 fell by 33% year-over-year to 300,399 units, with sales following a nearly identical trend. Sales of battery electric vehicles (BEVs) decreased by 25% to 147,601 units. Sales of plug-in hybrid vehicles (PHEVs) fell by 33% to 148,092 units. The smallest decline in sales, at 22%, was seen in commercial vehicles.

Avrupa Minerals is an exciting investment with significant upside potential, particularly since its market capitalization currently stands at just CAD 5 million. With its Project Generator business model, this growth-oriented company focuses on discovering economically significant mineral deposits in Europe, diversifies risks, creates value for shareholders through partnerships, and avoids significant dilution for shareholders. Barrick plans to spin off its North American gold assets. This will strengthen its copper division. The Canadian company is set to become one of the world's largest copper producers in the coming years. The stock remains an attractively valued core investment. BYD continues to struggle with a highly competitive environment in its key domestic market.