June 2nd, 2023 | 08:00 CEST
ThyssenKrupp, Orestone Mining, Nevada Copper - Optimistic about the future
Overall, copper is an indispensable part of the green transformation due to its excellent electrical conductivity, corrosion resistance and reliability. It enables the efficient use of renewable energies, promotes electromobility and supports sustainable infrastructure development. Due to recession fears, the base price corrected strongly in recent months. In the long term, copper should make a renewed attempt to reach new highs due to high demand and too little supply.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
THYSSENKRUPP AG O.N. | DE0007500001 , ORESTONE MINING CORP. | CA6861543032 , NEVADA COPPER CORP. | CA64128F7039
Table of contents:
"[...] If we pursue our goals conscientiously, the market will adjust its valuation accordingly, I am sure. Often, all it takes is a trigger. [...]" Ryan McDermott, CEO, Phoenix Copper
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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ThyssenKrupp - Clear announcement
As a starting signal, the new CEO, Miguel Angel Lopez Borrego, spoke on the business network LinkedIn and clearly announced where he wants to lead the industrial group with its focus on steel processing in the future. As a goal, the Company leader names a key role in shaping the green transformation. For example, the Essen-based company wants to convert its steel production to climate-neutral. In addition, the IPO of the subsidiary Nucera is to be pushed. This offers globally leading technologies for highly efficient electrolysis plants. The Company has extensive know-how in the planning, procurement and construction of electrochemical plants.
We can only hope that the IPO of the Dortmund-based company will go better than Borussia's planned championship celebration. Lopez tried to explain the plans in flawless football German. According to him, ThyssenKrupp has built strength in recent years. "It is time for us to score goals, or as they say in the Ruhr area: 'The decisive factor is on the pitch!'" said the new CEO. He said he could not kick the ball into the goal single-handedly. "However, I believe that together we can bring out the best in our team and the Company as a whole."
The optimism spread by the designated CEO has yet to be shared by the stock market players. At EUR 6.48, the share is just ahead of the upward trend at EUR 6.34 established since September 2022. A break would generate a sell signal with a next price target of initially EUR 6.00.
Orestone Mining - Potential confirmed
The stock market value of only CAD 2.27 million hardly reflects the potential of the Captain gold-copper porphyry project, especially when one considers that around CAD 5.4 million has already been invested in the 105 sq km property in the past and 8,000 metres of drilling has been completed. Surrounded by world-class infrastructure, the property is located just 41 km north of Fort St James and 30 km south of the Mt Milligan copper-gold mine in North Central British Columbia.
Already last year, anomalies were identified in the ground with gold grades up to 0.84 g/t and 1,700 ppm copper from a depth of 500m, extending downwards from an initial width of 300m at a depth of 1,300m in the form of a pyramid to a width of 1,500m. Structural and geological data has been compiled, and airborne magnetic resistivity surveys have been carried out in preparation for the current drilling program, with at least 2 holes planned this year at a depth of 1,000m to analyze and refine the rock structure.
The highly mineralized gold-copper veins were recently delineated, confirming the potential of an extensive porphyry system. The experienced management, which has already been involved in the exploration of 15 mines, plans to raise CAD 1.5 million through the capital markets. The share is currently trading at CAD 0.04, just below its high for the year - the all-time high dates back to July 2020 at CAD 0.275.
Nevada Copper - Old shareholders provide support
Founded in 1999, the Vancouver-based entrepreneur aims to develop one of North America's only production-ready new copper sources with the Pumpkin Hollow copper project in Nevada. The Pumpkin Hollow project has copper, gold and silver resources and covers 43.22 sq km. The two permitted projects include the higher-grade underground mine and processing plant, which is currently being recommissioned, and a large open pit project at the PFS stage. By the end of 2023, the Company aims to achieve a nominal production capacity of 5,000t per day through the ramp-up of the underground mine.
With the closing of the public offering and gross proceeds of CAD 52.9 million, another important step has now been taken. A total of 196,038,400 units were issued at a price of CAD 0.27, with each unit consisting of one common share and one-half of one warrant. Previous major shareholder Pala Investments acquired 108,442,714 units, representing an equivalent value of CAD 29.3 million, expanding its shareholding to 47%. The second major shareholder, Mercuria Energy Holdings, participated in the capital measure with an equivalent value of CAD 6.7 million. Its share decreased from 24% to 23%. The financing package, which was announced on May 9, amounted to CAD 115 million.
Following the new delays, Nevada Copper's share price has lost around 60% of its value since the end of January 2023 and is currently trading at CAD 0.20. Positive results concerning the ramp-up of the underground mine should breathe life back into the bombed-out stock.
The green transformation needs many metals, such as steel and copper. ThyssenKrupp wants to become a key player in the green transformation. Nevada Copper could close a huge financing package with a successful placement. Orestone Mining is about to start its drilling program.
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