Close menu




January 7th, 2022 | 11:46 CET

Varta, Nordex, Kodiak Copper: The 100% opportunity with copper in 2022!

  • Copper
Photo credits: pixabay.com

The climate decisions made in Glasgow in November are casting their shadows far ahead. It is becoming clear to the protagonists: electromobility and efficient electricity storage are increasingly important for the energy transition. Consistent decarbonization requires research, development and production of drives, batteries and components. The red conducting metal copper is an essential component of electrical components of all kinds. Today, an e-drive vehicle requires three to four times the amount of copper as an internal combustion model, plus the great demand in industrial manufacturing processes. The earth's reserves are exhaustible, and copper, in particular, is pretty much on the edge. We take a look at some interesting investment opportunities.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: VARTA AG O.N. | DE000A0TGJ55 , NORDEX SE O.N. | DE000A0D6554 , KODIAK COPPER CORP. | CA50012K1066

Table of contents:


    Ryan McDermott, CEO, Phoenix Copper
    "[...] If we pursue our goals conscientiously, the market will adjust its valuation accordingly, I am sure. Often, all it takes is a trigger. [...]" Ryan McDermott, CEO, Phoenix Copper

    Full interview

     

    Copper at just under USD 10,000 at the turn of the year

    As a relatively soft metal, copper is tough and easy to shape. As an excellent conductor of heat and electricity, it has many uses. High-tech, wind power, e-mobility and the infrastructure economy, the daily demand for copper is growing and is reflected in market conditions. The spot price of the coveted metal thus rose from around USD 8,000 to USD 9,700 in 2021. In the meantime, it has even reached USD 10,720. As a result, the commodity was one of the top performers in the commodity sector. As there are very few mines capable of production, the market focuses on interesting properties that can go into production in the next few years.

    Kodiak Copper - A successful year in British Columbia

    An attractive supplier for the tight consumer markets in a few years is Kodiak Copper, an explorer from British Columbia. Kodiak's MPD property is located in the Gate Zone, close to well-known mines such as Copper Mountain, Highland Valley and New Afton. The Company completed a major program in 2021 and is now looking forward to the coming year with commitment. With new efforts, copper value in the ground is expected to reach new heights.

    Kodiak completed the most extensive drilling program in its history in 2021 and has recorded additional discovery successes at every step. The designated size of the gate zone increased significantly due to exploration. Despite extraordinary challenges due to numerous fires, the team successfully completed 21,675 meters of drilling in 36 holes, a prospecting and trenching program including 1,755 soil samples and 176 rock samples, as well as IP surveys, geological and geotechnical studies and environmental surveys, all on budget. Mineralization has been intersected to date over a length of 950 meters, at a depth of 850 meters and over a width of 350 meters - dimensions typical of other large, multi-center copper porphyry deposits in British Columbia. In 2022, this will be followed by an extensive exploration program in the MPD license area.

    Kodiak shares are currently trading around CAD 1.34, providing a market capitalization of CAD 66 million. Given tight copper markets, this is a good starting position for 2022.

    Varta - Arrived at the critical mark

    A large consumer of copper is the battery manufacturer Varta AG from Ellwangen, Germany. The share experienced ups and downs of emotions in 2021, investors were even able to temporarily gain up to 50%, but in the end, the share just missed the initial level of the start of the year at EUR 118.

    Nothing but expenses? One has to give Varta credit because the management is precisely in tune with the spirit of the times with the development of a new automotive high-performance battery called "V4Drive". Unfortunately, the developments around the super battery devour insane R&D expenditures. Because of the long development period, Varta AG is not a short-term speculation object. Even on the contrary: the two smaller retractions in the forecasts repeatedly led to dents in the share price, which always generated annoying negative returns for the late entrant. With Varta, the investor can only continue to trust and hope for success in 2023/24 - then the profits will probably really bubble up.

    Until then, the chart can oscillate at will between EUR 110 and 140 and work off every Nasdaq swing and Tesla hype benevolently. Only the bastion at EUR 105 must not fall, then the world of the Swabians remains in order.

    Nordex - Programmed for strong growth

    Nordex SE from Hamburg is also a great hopeful value. This share has also been on a wild roller coaster ride. The group is currently building on a very strong order book that extends far into 2023, and the wind turbine manufacturer's capacities are almost fully utilized.

    Unfortunately, Nordex has often sold itself too cheaply in its pricing and suffers from supply chain problems with important components. As a result, customers have to pay penalties in the event of delays, which have a corresponding impact on margins. According to analyst consensus, sales are expected to remain constant at around EUR 5 billion in the coming year, but EBITDA is expected to almost triple. According to available estimates, real net profits will not be achieved until 2023, when the strongly growing Company will also be better able to finance itself. Considerable debt was converted into equity only in the summer, which temporarily depressed the share price by more than 30%.

    The 2021 balance sheet for Nordex stock is minus 36%. At EUR 13.8, the current price is now a full 50% away from the high of around EUR 27. In chart terms, a bottoming process is currently underway, which should no longer fall below the low of EUR 12.7. Initial positions could bring joy in the medium term.


    The copper shortage will continue to haunt us in 2022. That means high purchase prices for Varta and Nordex. For the copper explorer Kodiak Copper, the valuation of the MPD property increases with each new drilling result and a parallel high metal 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.

    Risk notice

    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.

    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 André Will-Laudien on June 20th, 2022 | 12:58 CEST

    Nel ASA, Nordex, Nevada Copper, Siemens Energy: Energy Crisis 3.0 - Copper is the solution!

    • Copper
    • Hydrogen
    • GreenTech

    The copper market is constantly on the move. Along with Shanghai and New York, the London Metal Exchange (LME) is now one of the world's largest metal trading centers. In Europe, the LME is the benchmark for copper prices and metal trading. In contrast to other exchanges, part of the trading is still done by call and floor trading by brokers in an open ring. The LME copper contract is the second-largest exchange-traded contract on the London Metal Exchange. The demand volume for copper has been at a very high level since 2018, currently even at a 25-year high. Last week, prices came under slight pressure as the specter of recession flew through the trading halls. Where are the biggest opportunities at the moment?

    Read

    Commented by Nico Popp on June 13th, 2022 | 10:40 CEST

    Stocks on the brink - here is how you can trade: thyssenkrupp, Nevada Copper, K+S

    • Copper
    • Commodities
    • fertilizer

    When companies are on the brink of collapse, it is usually already over for the stock market: As a rule, share prices react quickly to corporate distortions. Sometimes, however, these difficulties are only anticipated by the market and exaggerated in the context of the overall market. One such example is thyssenkrupp. The Company currently has its back to the wall again. We look at the situation and draw parallels with comparable companies at differing stages.

    Read

    Commented by Fabian Lorenz on June 8th, 2022 | 13:50 CEST

    Shares: Plug Power and BYD with exclamation points! Patience is needed at Nevada Copper

    • Copper
    • greenhydrogen
    • Electromobility
    • Mining

    Hydrogen or battery, which is better? This question is often asked. The answer is simple: both technologies will play an essential role in the energy and mobility revolution. While batteries seem to be gaining ground in the passenger car sector, hydrogen has numerous other potential applications, such as commercial vehicles and ships. Plug Power and BYD put exclamation points on incoming orders and vehicle sales. At the beginning of the value chain are commodity companies like Nevada Copper, which has now suffered a setback on its way to becoming a copper producer. However, the price slide could also represent an opportunity for investors.

    Read