Menu

Recent Interviews

Jerre Foo, Corporate Development Executive, Silkroad Nickel

Jerre Foo
Corporate Development Executive | Silkroad Nickel
50 Armenian Street #03-04, 179938 Singapore (SGP)

enquiries@silkroadnickel.com

+65 6327 8971

Silkroad Nickel: 'The course is set for dynamic profit growth.'


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


23. September 2020 | 11:14 CET

Varta, United Internet, SolGold: Future copper scarcity is becoming apparent

  • Copper
Photo credits: pixabay.com

A study commissioned by the International Copper Association (ICA) shows that by 2030 more than 250,000 tonnes of copper per year will be used as part of the windings in electric motors for all types of vehicles. Added to this is the long-established copper requirement in all conventional electrical appliances, electricity storage systems, generators and, last but not least, in construction, where the patina of roof and rain pipe structures is concerned. Copper is ubiquitous and yet one of the rarest metals on this globe. Current production is around 20 million tonnes of copper per year but is tending to decline by 5% per year due to mine exploitation and closures. South America is the largest copper producer in the world. According to official resource estimates, about 40% of the total copper deposits worldwide are in South and Central America, especially in Chile. The spot price of the rare metal has risen by a staggering 55% since the corona collapse in March and recently reached a new annual high.

time to read: 3 minutes by André Will-Laudien


Nick Mather, CEO, SolGold PLC
"[...] We knew the world was rapidly electrifying and urbanising and needing significant amounts of copper to do so. [...]" Nick Mather, CEO, SolGold PLC

Full interview

 

Author

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


The trend towards decentralized energy supply gives battery manufacturers wings

The shares of the battery manufacturer Varta, based in Ellwangen, Baden-Württemberg, are currently showing strong performance, even though Varta has to pay the increased raw material prices for its power storage applications. At the end of August, Varta's share price reached a high of EUR 130.50, which is double the price at the beginning of March. The reason for the sharp rise is excellent figures.

Group sales of between EUR 780 and 800 million are expected for 2020. This corresponds to a sales growth between 115% and 120% compared to the previous year. Organic sales growth should be between 32% and 38%. Adjusted Group EBITDA is expected to be in a corridor between EUR 175 million and EUR 185 million in 2020, representing a year-on-year increase of 79% to 90%.

Varta continues to see no losses due to the pandemic. On the contrary: the strong increase in people working from home and the resulting decentralized energy demand in the form of rechargeable batteries and battery storage units will lead to unique developments at Varta. The share price has reflected the supportive business environment well so far.

The partnership with Telefónica causes difficulties

The Internet and telecommunications group United Internet and its mobile subsidiary 1&1 Drillisch have lost more than 25% in value since Monday morning. The reason was the higher price demands of the partner Telefónica Deutschland for the use of the former E-Plus/O2 network. The agreement between United Internet, its mobile communications subsidiaries, and Telefónica, were once a condition for the approval of the merger of E-Plus and O2 by the cartel authorities.

Although the overall profit will only decrease by 6%, the downward price movement is significant. United Internet has been in great demand on the stock exchange in recent months and has already gained over 30% this year. The COVID pandemic has made investors jump on service providers around telecommunications and the Internet, as network usage has grown greatly, also due to streaming services.

Again a scarcity topic leads to public discussions in net-weak Germany again and again. For a broadband expansion of the networks in Germany, a lot of copper is required, because the nationwide supply of fibre optics will still be a long time coming. Thus, every infrastructure issue and the widely propagated digitalisation automatically triggers demand for the upstream raw materials industry.

Copper and gold deposits in Ecuador

The copper concessions of SolGold Plc, an Australian-based copper and gold exploration company, are not in short supply. The company is focused primarily on the North Andean Copper Belt resources in Ecuador, where it has several sections of continuous copper and gold deposits forming its main Cascabel project.

It also has assets in the Solomon Islands and Australia. The company's Cascabel project is a porphyry copper-gold deposit located in the province of Imbabura in northwest Ecuador. A comprehensive, nationwide study has recently been carried out by independent experts to assess the project's topographical, geological and chemical data. The resulting conclusion is the mineralization is classified as "significant" and the geological potential for mining is also well established.

In response to this study, the company initially established and financed four new subsidiaries in Ecuador, namely Carnegie Ridge Resources S.A., Green Rock Resources S.A., Cruz del Sol S.A., and Valle Rico Resources S.A. These subsidiaries currently hold 72 mineral concessions in a local area of approximately 3,200 square kilometres. The parent company, Exploraciones Novomining S.A. based in Ecuador, holds all of the Cascabel concessions and is owned by SolGold (85%) and Cornerstone (15%). Due to the good capitalisation of the participating companies, we expect copper production to start soon.

In connection with the scenario described above, SolGold is favorably valued at approximately EUR 582 million compared to large copper producers such as Rio Tinto or BHP Billiton. Given the size of the copper projects alone, gold activities are almost a gift. At the end of June 2020, there was still around USD 46 million in the cash box and attempts were also being made to take over the competitor, Cornerstone Capital Resources.

In our opinion, it is worth taking a speculative look at SolGold's copper projects; 21.7 million ounces of gold and 92.2 million ounces of silver are still being produced. The timing of the investment fits perfectly with the commodity revaluation that has been reflected in market prices since March 2020. Although the SolGold price of the shares listed in London, Toronto and Frankfurt has doubled since March, SolGold's strong operational performance is still in its infancy.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

20. April 2021 | 07:00 CET | by Stefan Feulner

BMW, Nevada Copper, Geely - The supercycle is unstoppable!

  • Copper

Since January of last year, the copper price has more than doubled and is currently trading at a 9-year high. The trend is clearly towards further rising prices. Due to the switch to alternative energy such as wind power or solar energy and the displacement of the combustion engine by the electric car, a multiple of the carrier metal is needed. Experts from major American banks such as Citigroup or JP Morgan are already talking about a new "supercycle" on the commodities market, a sustained upward price trend. Demand is rising and supply is falling. Back the winners of the energy turnaround!

Read

12. April 2021 | 07:50 CET | by Nico Popp

NIO, Varta, Nevada Copper: Where the best opportunities lurk in the value chain

  • Copper

The theory around value creation is simple: the more a raw material is refined or processed, the greater the margin a company can ultimately achieve. While a kilo of Kobe beef fillet costs around EUR 400, a savvy chef will conjure up ten dishes from it and take in four-figure sums. There are many reasons to invest at the end of the value chain, but the risk also increases. If the chef cannot cook, he will not make sustainable sales even with the best ingredients. The situation is similar in the value chain around electromobility.

Read

07. April 2021 | 09:30 CET | by Carsten Mainitz

BYD, Kodiak Copper, Varta - Buying rate?

  • Copper

Electromobility, energy and digitalization are continuing as a trend. Even if some prices have run hot in the meantime, the current price consolidation offers tempting entry opportunities. With the three shares presented, investors can bet on different facets of the trend. Which stock offers the most significant potential?

Read