29. June 2021 | 11:47 CET
Varta, JinkoSolar, Ballard Power, Sierra Growth - Energy technology on the test bench
What will mobility look like in 10 years? Will we all be riding bicycles because climate regulations make it impossible to move around using electricity or fossil fuels? Or are there still revolutionary developments that go beyond the battery as a universal remedy? Germany continues to experience an energy shortage because we buy cheap nuclear power from abroad. That is how things can go when a messed-up energy policy is associated with climate protection goals. No matter how things go, the world needs copper for modern technologies, and this raw material is in short supply.
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ISIN: VARTA AG O.N. | DE000A0TGJ55 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , BALLARD PWR SYS | CA0585861085 , SIERRA GROWTH CORP. | CA8263191055
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC
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.
Varta - The perennial battery runs at full speed
Last week, it was confirmed that Varta is working closely with German automakers to find the super battery with fast charging time and long-range. It has long been recognized that the long-distance traveler with a wait for the next free pillar does not want to spend 2 hours at a meager highway charging station next to the truck parking lot and recycling containers. The service station strategy would also have to be rethought entirely here.
No, e-mobility should be given an elitist veneer; after all, the proponents of this drive technology are highly future-oriented. We do not want to talk about tax motives because what is politically demanded only works with corresponding incentives because then, at least the public listens.
Lithium-ion batteries from Varta are an absolute perennial favorite because they are booming in all areas. Whether in hearing aids, headsets or fitness watches, power supply in miniature size is in demand. However, the greatest hope is the electromobility business, and here Varta is only at the beginning. Yesterday, the new battery plant in Nördlingen was opened. The development of the technology used there is funded by the federal government and the Free State with around EUR 100 million. The Company had announced that it would create about 600 additional jobs for this purpose.
According to Varta, the new lithium cells developed in recent years have an energy density that has improved by about 30%. This technology will have to be transferred to larger battery formats in the future. The share price saw a 30% increase in just 5 weeks, a lot of advance praise for a business that will not generate initial revenues until 2023/24.
JinkoSolar - Share price jump after super figures
JinkoSolar saw its share price jump on Friday. The stock market acknowledged the excellent figures of the Chinese solar module manufacturer. For each JinkoSolar share, the quarterly profit increased from CNY 2.67 to CNY 3.61, increasing 35%. However, this figure includes some special effects, which are excluded, namely, only CNY 0.96 earnings per share are reported. Quarterly sales fell from CNY 8.48 billion to CNY 7.94 billion, reflecting the decline in module prices.
The volatile JinkoSolar share can also go down again quickly after the rise because important chart-technical obstacles could not be overcome in this momentum. We locate the first buy signals in the USD 42.5 to USD 44.0 zone - of course, many chart traders know this because the value closed on Friday at USD 43. Wait and see if this is still valid for this week.
Ballard Power - New orders and a turn in the price
Good news for Ballard Power! Last week, New Flyer, a well-known city bus manufacturer, ordered another 20 fuel cell modules from Ballard. The new electric buses will be used in Oakland. This brings New Flyer FCEBs (fuel cell electric buses) operated by Ballard in California to 45 already. The Company plans to deliver all the modules to New Flyer this year.
The California deal is starting to pay off, with the state mandating by law that from 2023 a total of 25% of buses purchased by transit agencies must be zero-emission. By 2026, half and by 2029, all buses must be CO2 emission-free. Of course, it is by no means certain that these future orders will only go to Ballard.
The Ballard share has turned around at USD 14 for the time being. Thus the sell-off since February with approx. 65% price slump seems to be over. For a new upward trend, however, the USD 20 mark must still fall. Wait and see!
Sierra Growth Corp. - In the summer, things really take off
Whether Varta, Ballard or Jinko - they all work together to reduce greenhouse gases. Crucial for many technologies remains the availability of copper and other technical metals. The Canadian explorer Sierra Growth focuses primarily on copper in its properties in Peru and Nevada, as well as on silver, gold and molybdenum. On the three US projects, the Company has already started to evaluate corresponding soil samples.
Sierra has budgeted approximately CAD 5 million for further exploration work, and initial results should be available in August. The properties in question are held by experienced license holders who have a proven track record in exploration in Nevada. And excellent infrastructure is already historically in place in Nevada: Electricity, water and utilities are available nearby in local mining towns.
If you are looking for a small successor in the copper market and consider the supply situation over the next 10 years, you can see the potential of current copper projects. Sierra Growth is a junior that could be good news in many ways. The metals in the target area have historically been mined, so a more recent search makes sense.
Sierra Growth shares have been trading at around EUR 0.09 in Frankfurt since May, and trading volumes are still very low. Since the projects are still in an early phase, entry is possible with a manageable CAD 6.8 million market capitalization.