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January 20th, 2021 | 09:23 CET

Varta, Nevada Copper, Millennial Lithium - Electrified: you can still get in at a fair price!

  • Copper
Photo credits: pixabay.com

The growth in the areas of electromobility, renewable energies and the multi-faceted technology industry is leading to a substantial increase in demand for raw materials. If expert forecasts are to be believed, demand will significantly exceed supply in the coming years, which can only lead to the conclusion that prices will continue to rise. Copper and lithium are good examples of this. Linked to the topic of energy are also the challenges regarding new storage media. We present three promising companies for which demand and growth play into the cards.

time to read: 2 minutes | Author: Carsten Mainitz
ISIN: CA64128F1099 , DE000A0TGJ55 , CA60040W1059

Table of contents:


    VARTA AG - Subdued mood

    VARTA AG produces and markets a wide range of batteries. The product range includes microbatteries, household batteries, energy storage systems, and customized solutions for diverse applications. Thanks to intensive research and development work, the MDAX-listed group is a technology and innovation leader in many areas.

    Its strong market position in microbatteries, which are used in wireless headphones, among other things, has provided the Company with bubbling profits. Earlier this month at the Consumer Electronics Show - one of the world's largest consumer electronics trade shows - Varta unveiled virtually the new A4 generation of lithium-ion button cells. These microbatteries allow for the production of increasingly compact and smaller devices.

    In recent days, reports that Samsung and LG will enter the market of microbatteries weighed down. The market is undoubtedly large enough for multiple players, yet this will create margin pressure for Varta. In the analysts' favor, the stock is currently only a 'hold' with an average price target of EUR 116, roughly corresponding to the current price level.

    NEVADA COPPER CORP - great investor interest

    Nevada Copper is an emerging copper producer and owner of the Pumpkin Hollow Copper Project in the US state of Nevada. The project has significant reserves and resources of copper, gold and silver. An underground mine is in production, and an open-pit project is under development and would noticeably increase output.

    On January 11, the Company announced a capital increase of CAD 21.5 million but increased this offering to CAD 33 million just one day later due to a sharp rise in investor demand. 200 million new shares will be issued at a price of CAD 0.165 linked to a warrant with an exercise price of CAD 0.22 and a term of 18 months. The capital increase will significantly improve the equity base. The funds raised are intended to strengthen working capital and contribute to the further development of the project.

    The Company is currently valued at CAD 260 million. The share is now the focus of many investors. Ts is evident not only by the strong demand from the capital round but also by the fact that the share was among the most active 20 securities on the TSX-Venture in terms of trading volume within the last 10 days. Analysts believe the stock still has a price potential of around 70%.

    MILLENNIAL LITHIUM CORP - Pilot plant to produce lithium this year

    Millennial recently made further progress towards lithium production. The Company is advancing two projects covering over 20,000 hectares located in what is known as the "Lithium Triangle." The area straddles one of the world's most prolific lithium deposits between Chile, Bolivia and Argentina.

    Both of Millennial's projects are located in Argentina. Efforts are focused on advancing the Pastos Grandes Project. In December, the Company reported that it was going through a permitting process to start up the pilot production plant. The Company aims to produce battery-grade lithium carbonate "early" in 2021. The results and findings from this test phase will then be used to finalize the commercial plant's process design.

    It is therefore not surprising that the share price has jumped recently. The Company is currently valued at just under CAD 380 million. According to a profitability calculation, the Pastos Grandes project alone is worth around USD 1 billion. The project's progress will be reflected positively in the share price.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



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