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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


31. March 2021 | 11:45 CET

Varta, Nevada Copper, Porsche - In the wake of the electromobility megatrend!

  • Copper
Photo credits: pixabay.com

Demand for copper is increasing, and not only as a result of electromobility. Almost three times as much copper is used in an e-car as in a vehicle with a combustion engine. The world's largest consumer of the industrial metal is China, especially the construction sector. Chile and Peru top the list of the largest copper producers, followed by China and the United States. The metals price has been bullish over the last 12 months, showing a 75% increase. The future is bright not only for the price of copper or the shares of copper producers but also for related demand industries. We present you with three promising investments.

time to read: 3 minutes by Carsten Mainitz
ISIN: DE000A0TGJ55 , CA64128F1099 , DE000PAH0038


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

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


VARTA AG - Long or short?

The Varta share is increasingly dividing opinions. The German flagship Company made shareholders of the first hour, who entered at the IPO in 2017, especially happy. The share price has increased six-fold since then. At the beginning of the year, the share price reached a new record level of EUR 181.20 during trading. In chart terms, a double top was formed in the area of EUR 170, calculated with a big thumb. The share is currently trading at EUR 126.50, which gives the Company a market value of EUR 5.13 billion. No matter how you look at it, the share is too expensive, and this is also the view of most analysts. Disillusionment has prevailed since mid-February at the latest when Varta issued a forecast for operating growth in the current year, figures disappointed with not even 20% - given a P/E ratio of over 30 and a price-turnover ratio of over 5.

No matter how sporty, any valuation can quickly be put into perspective if the prospects are right. In the past, the technology and innovation leader generated high profits due to its strong market position in microbatteries, which are used in wireless headphones, among other things. Slowly, however, strong Asian players are moving into position in this area. So far, this has not bothered the stock market. Another maneuver by Varta to generate more growth would also be acquisitions, as has been the case in the past.

In the Company's March 16 announcement, some market participants see the big move. Varta announced its plans to enter the market for battery cells for electric cars. A pilot line for a large-format battery cell is to be set up at the Company's headquarters, it said. Intensive talks with several car manufacturers were already underway. Since the share price did not go through the roof after this news, we suspect that skepticism about entering this highly competitive market with strong Asian giants and Tesla prevails at the moment. Ultimately, the question remains whether Varta can transfer its technology expertise in microbatteries to large-format battery cells.

NEVADA COPPER CORP - Take advantage of the share price consolidation

Nevada Copper is an emerging copper producer in the US state of Nevada. A significant asset is the Pumpkin Hollow Copper Project, which has substantial reserves and copper, gold and silver resources. In addition to ongoing high-grade production at the underground mine, an open-pit project is under development.

In recent months, there have been several unplanned shutdowns of underground production that have pushed back the Company's goal of processing 5,000 tons of ore per day. Earlier this month, Nevada Copper confirmed that it would reach that target in Q3. While the focus is clearly on ramping up the underground mine, the Company plans to explore other organic growth opportunities this year. That means further exploration of areas within the large Pumpkin Hollow project.

The significant ramp-up in production from Q3 should provide the Company with decent profits given the high copper prices. But also progress in open-pit mining or exploration of new zones will give the stock positive momentum, in our opinion. In general, the general conditions for the industrial metal and copper producers remain good. High demand from the energy and construction sectors, coupled with an improving economy, should lead to a positive share price performance. The share is currently quoted at CAD 0.165. A few weeks ago, the price was 50% higher. With a market capitalization of CAD 300 million, Nevada Copper is valued low for an emerging copper producer.

PORSCHE - Value without end

Anyone who wants to combine the themes of e-mobility, innovation, and value should take a very close look at the Porsche Automobil Holding share and quickly add the shares to their account, assuming they are not already there.

Porsche Automobil Holding is a listed holding company and holds 53.3% of the ordinary shares of VW AG. As a result, investors can invest in a colorful bouquet of the world's leading automobile manufacturers and brands such as VW, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Scania and MAN. And the best part - at a whopping discount. The VW stake is worth around EUR 85 billion. Porsche Automobil Holding is valued at just EUR 28 billion. In balance sheet terms, the Company has equity of EUR 36 billion. Relatively low liquidity and the shareholder base certainly justify a discount, but it cannot be that high in the long term.

Another explanation for this discrepancy is that investors do not consider the price increase of the VW share and the Group's future plans to be sustainable. When looking at Porsche shares, there are also a few innovative yield pearls on top, as the Company holds other strategic investments along the automotive value chain in addition to its core investment VW. The share is extremely undervalued - buy.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

30. July 2021 | 11:21 CET | by Carsten Mainitz

First Majestic Silver, Kodiak Copper, Orocobre - Metals for e-mobility offer great growth potential

  • Copper

Tesla, NIO and Polestar, the pioneers of e-mobility. But the global climate crisis and the realization that it can only be combated with the help of a consistent reduction in greenhouse gases has also led traditional car manufacturers to realize that alternative drive concepts are necessary, not least as a result of legal requirements. Electromobility has currently established itself as the most promising option. Manufacturers are now hastily trying to steer their product development in this direction and are making announcements about the end of the internal combustion engine: Jaguar wants to phase out the engine by 2025. Fiat, Volvo and Ford have announced the end of the engine by 2030. VW has set the period between 2033 and 2035 as its target, at least for Europe, and Audi wants to phase out entirely by then. Mercedes also has a similar date in mind. However, all e-cars have one thing in common: they are very hungry for raw materials. An e-car requires about four times as much copper as a combustion engine. Consumption of gold and silver (onboard electronics) and lithium (batteries) will also increase significantly.

Read

21. July 2021 | 12:49 CET | by Armin Schulz

QMines, Varta, Siemens Energy - Who benefits from the copper shortage?

  • Copper

The copper price has moved significantly upwards over the past year. On the one hand, this is due to the increasing demand caused by sustainability topics such as renewable energies, e-mobility and global electrification. On the other hand, the metal has become scarce. Whereas 60 profitable copper projects were launched in 2008, only 36 were established in 2020, and this with declining mining values. In 2015 0.65% copper per ton was still being mined; this value will fall to 0.55% by 2025. Existing large copper mines will also need billions in the coming years to maintain their production levels. These additional costs will be passed on to consumers. Today we highlight three companies that either produce or need copper.

Read

20. July 2021 | 12:38 CET | by André Will-Laudien

BYD, Volkswagen, Kodiak Copper: The 1000 Dollar Correction!

  • Copper

The copper price had reached its interim high in May 2021 at around USD 10,500. Since then, we have seen a standard consolidation of 10-15%, which is not an unusual occurrence in an uptrend. The increase since the beginning of 2020 is over 100%. Copper mines have been able to post multiple performances in the same period, and the recent correction was accordingly somewhat higher. For many market participants, however, the medium-term scenario for the industrial metal is set. Since the political closing of ranks on e-mobility, demand for copper and battery metals has shot through the roof. Mine operators worldwide are alarmed; the currently recoverable capacities cover just 85% of the demand from 2022. Who can close the gap?

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