Close menu

May 11th, 2021 | 10:45 CEST

Varta, NIO, Standard Lithium, QMines: Total Copper Boom - Watch out!

  • Copper
Photo credits:

Availability of copper is one of the bottlenecks in electromobility. Its price hit a new record high last week at USD 10.445 per ton. Other commodities such as iron ore and uranium have also been in high demand recently. There are reasons for the price boom on both, the demand and supply side. Demand is currently highly driven by the prospect of rapid economic improvement. The accelerating rate for Corona vaccinations gives hope for fewer restrictions and an upturn in economic activity. Supply is currently unable to keep up, especially for technological commodities such as copper, nickel and lithium. We take a look at key industry players.

time to read: 3 minutes | Author: André Will-Laudien
ISIN: DE000A0TGJ55 , US62914V1061 , CA8536061010 , AU0000141533

Table of contents:

    Matthew Salthouse, CEO, Kainantu Resources
    "[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources

    Full interview


    Varta - Moving forward with digitalization

    Now things can really get going at Varta. The battery manufacturer wants to significantly increase battery production and align it in future with the help of digital processes. To this end, Varta is participating as a partner in a Fraunhofer research project. The core of the joint venture called "DigiBattPro4.0" is a holistic digitalization of battery cell production. This project is intended to help increase and stabilize the product quality of lithium-ion battery cells and significantly reduce manufacturing costs.

    However, shareholders are likely to be looking at the numbers this week: Excitement is building, but investors should not expect big jumps in the first quarter. CEO Herbert Schein is not planning on stronger growth until the second half of the year. Therefore, the Board of Management is likely to confirm its forecast for the full year for the time being.

    The Group expects organic sales growth in the high single-digit percentage range and earnings growth well into double digits in the current fiscal year. Sales are thus seen at around EUR 940 million after EUR 870 million. Although this is only an 8% increase, the operating margin is expected to rise disproportionately to around 30% of sales. That corresponds to an improvement of up to 2.5 percentage points. The share price is currently still stuck between EUR 115 to 125. We recommend a cautious pace, as analysts are also very cautious.

    NIO - The leap to Europe

    NIO is getting serious with its expansion plans: In September, the Chinese electric car startup plans to deliver its first electric vehicles in Norway, starting with the ES8 electric SUV. The electric-powered luxury sedan ET7 is then to follow in 2022. NIO would thus be active outside its home market for the first time and entering new marketing territory.

    Meanwhile, the registration figures for April are cheerful: 23,816 units for the Chinese market, which corresponds to a market share of 10.4% and an increase of 414% compared to the Corona-dominated month of the previous year. Plug-in hybrids even reached a market share of 11.8% with 26,988 newly registered vehicles.

    The NIO share also does not want to get off the ground at the moment. The only positive aspect is that, after a 40% drop, it has managed to hold the EUR 30 mark for the third time. If this line is broken, there is a threat of trouble on the chart because the next stop line would only be in the vicinity of EUR 18.

    Standard Lithium - Collaboration with Lanxess in Arkansas

    Standard Lithium is currently developing its flagship project, the 150,000-acre joint venture with Lanxess, located in southern Arkansas. Lanxess has long had a bromine production facility on site. The region hosts North America's largest brine deposit with more than five decades of commercial production, abundant, low-cost power, access to chemical reagents and water sources. Combine this with a progressive business-friendly environment, good infrastructure of road and rail, and a highly-skilled workforce.

    With a capitalization of EUR 360 million, Standard Lithium Ltd is one of the TOP 20 lithium stocks on the shortlist. Using proprietary processing technologies and strategic partnerships, the Company is in a position to bring the first new lithium project in the US into production in over 50 years. Standard Lithium's stock has been on an upward trend since May 2020, but the EUR 3 mark has been a resistance so far. However, this could change soon.

    QMines - Copper and gold on almost 1000 square kilometers

    QMines, which was recently launched in Australia, offers a combination of two exciting investment themes. With a 983 square kilometer property in Queensland, the Company is taking advantage of the excellent infrastructure around the ports of Gladstone and Brisbane. The project traces its origins to the historic Mount Chalmers mining district, which has already produced 1.2 million tons at a copper grade of 2%.

    With the cash from the IPO, QMines will soon start its drilling program based on a potential resource of 3.9 million tonnes of well-consumed rock. Historical results in the 4 different zones suggest rapid success. Between 32,000 and 60,000 meters are to be drilled and work will continue until early 2022.

    QMines is launching the new projects at the right time. As both copper and precious metals are running up in spot prices, there is now a huge supply deficit for copper globally that can only be addressed by new mine developments. The decarbonization of the planet is at the top of the agenda of all parties, not least due to the election of Joe Biden, after Donald Trump had wholly ignored this topic.

    QMines shares had a solid debut at AUD 0.27 and now stand at AUD 0.30. Gross proceeds raised of AUD 11.55 million were above the minimum subscription amount of AUD 10 million disclosed in the prospectus resulting in a current market capitalization of AUD 27.6 million. The exciting share should soon be listed in Frankfurt.

    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    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.

    About the author

    Related comments:

    Commented by Juliane Zielonka on August 18th, 2023 | 08:00 CEST

    Globex Mining, Deutsche Lufthansa, Rheinmetall: Share prices soar on the back of impressive deals

    • Mining
    • Gold
    • Copper
    • Aviation
    • armaments

    Globex Mining achieves several deal highlights: The exploration company receives CAD 2 million in cash from Agnico Eagle for a land purchase, with further opportunity for a growing asset. Over 23 months, an additional CAD 6 million is expected to flow to Globex Mining. Then follows an option agreement with Tomagold Corporation on a Canadian gold property at Gwillin Lake near Quebec. Total payments of six figures are due over the next four years. In addition, shares in Tomagold will be transferred to Globex Mining. While German Foreign Minister Baerbock was more conspicuous for flight mishaps, the Lufthansa Group achieved an adjusted EBIT of around EUR 1.1 billion in Q2/23. The subsidiaries SWISS, Austrian Airlines, Brussels Airlines, Eurowings and Lufthansa Technik also posted record results. Furthermore, Rheinmetall is also taking to the skies - now supplying drones to Ukraine.


    Commented by Fabian Lorenz on July 14th, 2023 | 07:50 CEST

    Bulls at the controls: Nel, Barrick Gold, Viva Gold! What about BASF?

    • Mining
    • Gold
    • chemicals
    • Copper

    Low inflation in the US has given new impetus to the bulls. Not only are growth stocks benefiting from the hope that the interest rate cycle is coming to an end, but also gold. Thus, the gold price reacted on Wednesday by jumping to over USD 1,960 per troy ounce. Top-tier gold stocks such as Barrick also responded positively. Exploration companies have significant catch-up potential, including Viva Gold. The Company is favorably valued and has again reported positive drill results. The fact that the interest rate cycle is nearing its end is also evident in the chemical industry. Most recently, BASF issued a warning, and there are sell recommendations. On the other hand, there are buy recommendations for the Nel share.


    Commented by André Will-Laudien on June 6th, 2023 | 07:45 CEST

    Climate Crisis: Copper is the new oil! BYD, Orestone Mining, Ford, Nio - 100% acceleration in Greentech

    • Mining
    • Copper
    • Electromobility
    • GreenTech

    At the beginning of May, analysts at Bank of America declared a new "super cycle" for basic and raw materials. What they mean by this is that a whole series of important materials will be in great short supply for years. The prime example is the red metal copper. The price of the industrial metal has almost doubled in the past 12 months. It is currently quoted at around USD 8,350 per tonne, not far from the historic high of USD 10,750. During the pandemic, the metal briefly fell to USD 4,500. Currently, however, forecasts are once again pointing upwards. Bank of America expects the price to more than double again to around USD 18,000 in the next three years. We take a look at some hot stocks.