May 11th, 2021 | 10:45 CEST
Varta, NIO, Standard Lithium, QMines: Total Copper Boom - Watch out!
Table of contents:
"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources
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 - 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.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. 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.