Close menu




October 14th, 2021 | 13:55 CEST

Varta, Standard Lithium, Sierra Grande Minerals, Nordex - The next hype rolls in!

  • Copper
Photo credits: pixabay.com

In Germany, politics is becoming significantly greener! But what do the mobility concepts of the climate protectors look like? In addition to the publicly demanded reduction of unnecessary business flights, the bicycle would also be an alternative for 30-kilometer journeys. Fossil energy has already become 50% more expensive in 2021, and gas prices are going through the roof. There is still a high demand for energy in Germany because we are currently buying cheap nuclear power abroad. This is how it can go when a botched energy policy is associated with climate protection goals. No matter how things go, the world needs copper for modern technologies, and this raw material, along with lithium and other critical metals, is just terribly scarce. How are the typical industry players doing?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: VARTA AG O.N. | DE000A0TGJ55 , STANDARD LITHIUM LTD | CA8536061010 , Sierra Grande Minerals | CA82631L1085 , NORDEX SE O.N. | DE000A0D6554

Table of contents:


    Varta and Standard Lithium - Takeover rumors drive share prices

    A lot is going on in the battery sector right now. After Millennial Lithium, Neo Lithium is now also being bought up. According to Wall Street speculations, the next candidate could be Standard Lithium, but a potential buyer would have to put significantly more money on the table. A just-published feasibility study (PEA) increases the enterprise value of Standard Lithium quite considerably. We have already described the outstanding property in Arkansas several times.

    At Varta, prices of EUR 111 were recently written on the board, just a week ago. Yesterday, the paper was quoted again at EUR 126. One gets the impression that the investment community is confronted with new facts daily and reacts accordingly. At the beginning of the week, Rock Tech Lithium also announced that it wants to build up a lithium production in Brandenburg. That would be a planned capacity for 500,000 units starting in 2024 in close proximity to Tesla in Grünheide.

    Varta has been working closely with German automakers, looking for a super battery that can do everything and costs little. It has long since been recognized that long-distance travelers with a two-hour wait for the next accessible charging point at a barren highway charging station can hardly be won over to the topic of e-mobility. The required parameters are fast-charging capability, enough charging stations and a long-life battery with an acceptable range of more than 800 kilometers. Financiers are lining up, and now the industry is challenged to deliver quickly.

    From a valuation perspective, standard lithium and Varta are overpriced. However, the example of hydrogen shows where shares can end up when the herd can no longer be stopped. Overall, however, the candidates mentioned are only suitable for speculative investors.

    Sierra Grande Minerals - First discoveries show potential

    The high-tech industry has picked up the ball on reducing greenhouse gases. Crucial for many technologies remains the availability of copper and other industrial metals. The Canadian explorer, Sierra Grande Minerals, focuses mainly on copper as well as silver, gold and molybdenum in its properties in Peru and Nevada. On the three US projects, they have already started to evaluate corresponding soil samples.

    Now the first results of soil samples from the Betty East project have been reported. It is located less than 20 km south of Kinross Gold's Tier 1 Round Mountain mine. The samples were positive and indicate industrially viable mineralization. While gold and arsenic were more likely to be found in the northern part called Knolls, silver, arsenic, antimony, mercury and molybdenum are encountered to the north. Excellent infrastructure has historically been present in Nevada: Electricity, water, and utilities are available nearby in local mining towns.

    If you are looking for a small successor in the copper market and consider the supply situation over the next 10 years, you will see the potential of even smaller copper projects. Sierra Grande is still a junior, as the valuation is still very manageable at CAD 6 million. Should a major take notice of the small prospector, multiple valuations are common in a merger. The share is also listed in Frankfurt. Due to the tight market, please only buy in a strictly limited way.

    Nordex - Was this the sell-off?

    Audible jubilation was heard yesterday by all Nordex fans. The ticker indicates a plus of approximately 4,5% for the share at EUR 14,56. Does this mean that the way up is now clear, or should investors carry out another operational review?

    Nordex is in itself an election winner, as the red-green majority has signaled that investment in renewable energies will continue throughout the entire legislative period. For Nordex, this means a good tailwind for the order situation and, at the same time, pressure to deliver within reasonable times. That has become a problem given the supply situation with critical metals such as copper and rare earths. The Rostock-based company recently reported an order for a 54 megawatt (MW) wind energy project from Ukraine. The order was placed at the end of September 2021.

    After months of sell-off and the manifested downward trend, finally a sign of light in the price movement. Chart technicians, however, do not yet see a significant breakout because the 200-day line is still a considerable distance away at EUR 18.5. Nevertheless, the share is suitable for a speculative recovery trade with a price target of EUR 18.5. The battle of the bulls and bears should be decided quite quickly in the next few days. Set a tight stop at EUR 13.20 for new purchases. Long-term positions remain worth holding.


    The commodity sector currently determines the margins in the industrial business. Manufacturers like Varta and Nordex are challenged here in their purchasing policy. The junior explorer, Sierra Grande Minerals, can explore its property in peace. If there are industrial deposits in sufficient quantities, things will undoubtedly take off soon at this low level.


    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 Juliane Zielonka on February 2nd, 2023 | 08:00 CET

    Copper on the rise: Kodiak Copper, BASF and JinkoSolar benefit

    • Mining
    • Copper
    • renewableenergies

    Global copper demand is estimated to double by 2035, requiring new mines, mine expansions and technological improvements at existing mines to boost production. One beneficiary of this boom is Kodiak Copper. Assay results from the recently completed drilling in late 2022 have increased the known mineralized envelope at both the Gate & Prime Zone discoveries at its British Columbia project. At the 6th International Investment Forum on February 15, CEO Claudia Tornquist will share more about this with interested investors. BASF is also taking steps to bridge the looming copper shortages due to high demand. A new cooperation is expected to accelerate copper mining. JinkoSolar, on the other hand, as a user of the highly sought-after metal, has struck another new deal. Hedge fund managers are excited.

    Read

    Commented by Fabian Lorenz on January 25th, 2023 | 13:54 CET

    Bayer shares soon to reach triple digits? Barrick Gold and Desert Gold praised by analysts

    • Mining
    • Gold
    • Copper
    • chemicals

    Will Bayer be broken up, or will triple-digit share prices beckon? According to media reports, more and more investors are calling for the former. Most recently, Bluebell Capital Partners. According to the Bloomberg news agency, the British investor is calling on the DAX-listed Company to separate its Crop Science and Pharmaceuticals divisions. This could lead to a 70% increase in value for shareholders. Analysts also see considerable share price potential and believe that triple-digit prices are possible. Gold is also shining again. However, this has yet to be realized by exploration companies in particular. Experts see the chance of a revaluation at Desert Gold, for example - through takeover fantasy and drilling results. Besides B2Gold, Barrick Gold also comes into question as a buyer. The industry leader is also recommended as a buy, despite weakening Q4 results.

    Read

    Commented by André Will-Laudien on January 6th, 2023 | 10:18 CET

    Tesla share continues to crash! Volkswagen, BYD, Kodiak Copper, Mercedes - E-mobility in distress?

    • Mining
    • Copper
    • Electromobility
    • Gold

    E-mobiles still account for a single-digit percentage of all vehicles worldwide, but the growth trends speak a clear language: the world will electrify in mobility! Anyone following the price of copper should note one important point - copper is an important industrial metal that is not only used in cars. The biggest consumers are the construction and infrastructure industries. And these sectors are suffering from extreme inflation, high interest rates and the resulting economic decline in demand. For the copper price, of course, this also means no exuberant scarcity at present, and thus falling prices from around USD 5.00 to currently around USD 3.80 per pound. So, as with all commodities, timing in the economic cycle is the key determinant of investment success. Which stocks are in focus now?

    Read