Close menu

March 31st, 2022 | 11:57 CEST

Varta, Phoenix Copper, JinkoSolar, Nordex: Numbers upon numbers, where is the explosive?

  • Copper
  • Electromobility
Photo credits:

The copper price reached its preliminary high on March 7, 2022, at around USD 10,730. Since then, we have seen a standard consolidation of 3-4%, which is not an unusual occurrence in the present uptrend. Thus, the coveted metal has exploded by over 100% since the beginning of 2020. Large mining groups and copper mines have often been able to post a multiple of this performance for themselves in the same period. For many market participants, the medium-term upward scenario for the industrial metal remains set. Since the political closing of ranks on e-mobility, demand for copper and battery metals has shot through the roof. Mine operators and governments worldwide are alarmed because the current recoverable capacities cover just 85% of the current year's demand. Who can close the gap?

time to read: 5 minutes | Author: André Will-Laudien
ISIN: VARTA AG O.N. | DE000A0TGJ55 , PHOENIX COPPER LTD. | VGG7060R1139 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , NORDEX SE O.N. | DE000A0D6554

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


    Varta - Highest excitement ahead of the figures

    It has rarely been this exciting. Varta is delivering its annual results for 2021 today. We have looked at the figures in advance and want to summarize the expectations of market participants and experts going into today's publication.

    The battery manufacturer is facing critical days, as the share price has been bobbing back and forth between EUR 85 and EUR 95, about 40% lower, since the last profit warning in the fall. At the height of summer 2021, up to EUR 166 was paid for the share. Due to the strong price correction in recent months, it is now crucial that the potentially unfavorable Varta share can provide a promising outlook for 2022 and subsequent years. In particular, the market is waiting for the super battery V4Drive and further deals with the well-known premium manufacturers.

    Most recently, Varta had repeatedly dampened the exaggerated market expectations. According to market consensus, sales should end up at around EUR 900 million. In terms of operating profit (EBITDA), the Executive Board and analysts are unanimously expecting around EUR 275 million, corresponding to an operating return of almost exactly 30%. As far as the outlook is concerned, a statement on the e-battery business is expected. The timing of market maturity is also crucial, as the competition, especially from Asia, is rushing ahead in leaps and bounds. So far, stock market analysts are only pricing in a sales increase of around 12% for 2022/23, which is too low for a growth value. After all, the planned turnover is currently valued at a factor of 3.5.

    It is, therefore, worth taking a close look at Varta today. Will the figures help the share back above the EUR 100 mark, or will it possibly continue to go down? Technically, the price should not fall below EUR 78; otherwise, there is a threat of trouble in the medium term. For a detailed update, please visit during the course of the day.

    Phoenix Copper - The next supplier from Idaho is in the starting blocks

    There cannot be enough copper suppliers at the moment. GreenTech producers have a massive need for the electrically conducting metal CU in all electrical components. Manufacturers of power equipment and high-tech products, in particular, are scrambling for favorable long-term contracts for supplies of the industrial metal, which has become rare.

    London-listed Phoenix Copper Ltd, with an operating property in Idaho (USA), owns the Alder Creek mining deposit rights. According to current plans, open pit mining could begin as early as mid-2023, and exploration work for this is in full swing. The total size of the Phoenix claims, including the Navarre Creek gold property, has now increased to 32.5 sq km, and a positive feasibility study with a revenue potential of USD 836 million has already been finalized for the planned copper mine.

    Last week there was news on the operating figures. A slightly reduced loss of USD 969,250 was reported for 2021. Net assets at the Empire Mine grew from USD 13.8 million to USD 37.8 million, with a total of USD 26.1 million invested in further property development. There was still USD 13 million in cash on the balance sheet at the end of the year and no debt. Management has slightly increased its stake in the Company by exercising warrants. The stock is now listed on the OTCQX board in the US and has gained a whopping 30% since mid-March. Despite the Ukraine crisis, the Idaho copper story is running like hotcakes with the immanent copper shortage in the market. Get in!

    Jinko Solar versus Nordex - Which GreenTech stock to prefer now?

    The GreenTech specialists JinkoSolar and Nordex are regularly on our radar. Both companies have now published their annual figures for 2021, and we take a brief look at how the companies have developed fundamentally.

    Jinko reported its 2021 numbers on March 23, and on the revenue side, the Company posted CNY 40.8 billion, up from a lower CNY 35.3 billion last year, a healthy 15.5% increase. Earnings per share for the full year were CNY 10.84. The Company reported a net income of CNY 21.51 per share in the previous year. While sales disappointed, earnings were in line with expectations. The stock came under pressure and lost about 10% to EUR 44.8 by yesterday but recovered strongly to over EUR 47.50.

    Nordex's management has become cautious because of the problematic supply chain issue. According to Group CEO Jose Luis Blanco, the wind turbine manufacturer will post a loss in the current fiscal year. In 2021, Nordex reported a net loss of EUR 230 million after a minus of EUR 130 million the year before. The first quarter will be weak but has already been factored in. Hopes rest on a general easing in the second half of the year. The Group is trying to pass on the increased costs for energy, raw materials and transport to customers and is slowly meeting with understanding.

    However, the global impact of the Ukraine crisis is hardly foreseeable. Nordex is currently trying to relocate projects in Ukraine which have not yet been started to other countries. However, the indirect consequences of the war are serious. These include, for example, the effects of high steel and logistics prices, and Russian shipping companies are now being dispensed with altogether. In the current year, Nordex is aiming to at least match the previous year's results in terms of sales and returns. Revenues are expected to be between EUR 5.4 billion and EUR 6.0 billion, with a narrow EBITDA margin of 3.5%, which is expected to rise to 8% in the long term.

    Chart-wise, we give the Nordex share preference at EUR 15.7, but fundamentally JinkoSolar looks better. Both companies are hanging on the same theme: a shortage of raw materials and high costs! In the current environment, volatility will remain high.

    High-tech manufacturers are suffering from high raw material and logistics costs. If interest rates continue to rise, public sector investments could also come under pressure. The real economic effects of the Ukraine crisis are not even calculable at the moment. Varta, JinkoSolar and Nordex are all dependent on a stable growth environment. Phoenix Copper can shine in this environment with its demonstrated results and continues its projects with a filled cash box.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided 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 September 22nd, 2023 | 06:50 CEST

    Cardiol Therapeutics, BioNTech, BYD - At top speed to new markets

    • Biotechnology
    • Pharma
    • Electromobility

    Cardiol Therapeutics is enjoying a remarkable development. The biotech company is now rolling out its ARCHER patient recruitment trial internationally at 35 participating centers. This accelerates research in the development of their therapy to combat myocarditis, a heart inflammation which has been associated with COVID-19 vaccination. For Cardiol Therapeutics, this represents an opportunity to get its therapy approved as an orphan drug. Approval is also at stake for BioNTech. With a multimillion-dollar funding boost, the Company is working on accelerated approval for a vaccine against a virus that caused quite a stir last year. The shortened development time is likely to impress investors. While business nations agree on fighting viruses, they disagree on commodities for the road. The EU would prefer to restrict BYD's successful sales on domestic roads - by imposing tariffs. BYD, meanwhile, is tapping into a completely different market.


    Commented by Nico Popp on September 21st, 2023 | 07:00 CEST

    Turnaround cancelled? Where 100% is possible: Varta, BYD, Manuka Resources

    • Mining
    • Vanadium
    • PreciousMetals
    • Batteries
    • Electromobility

    When soccer players move to a better team, it usually comes with higher earnings. Sometimes, the training is more intense, and the tasks off the pitch are more extensive. It is no longer comparable to the idyllic life at their former club. Athletes are then faced with the question, "Give up or bite the bullet?" The situation is similar for battery pioneer Varta, which is implementing its e-car plans with Porsche, of all companies. The sports car manufacturer offers major growth opportunities but is also considered meticulous among engineers. We highlight Varta's stock, take a look at BYD and outline opportunities at a company many have never heard of!


    Commented by Nico Popp on September 20th, 2023 | 08:10 CEST

    Investing in Value Chains - The End for an Institution: AMS Osram, Volkswagen, Almonty

    • Mining
    • Tungsten
    • Electromobility
    • renewableenergies

    For years, the Transparent Factory in Dresden was a symbol of confidence at the end of the 1990s: Volkswagen wanted to catch up with the premium class in the modern car factory and had the Phaeton luxury sedan rolling off the production line there until 2016. After several years, during which the ID.3 electric car was manufactured there, the site is on the brink of closure - at least as a production facility. The property in the Elbe metropolis is too chic for VW not to find another use for it. The automotive industry is also undergoing change elsewhere. We outline three current cases and highlight possible investment opportunities.