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Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


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
ISIN: DE000A0TGJ55 , DE0005089031 , GB00B0WD0R35


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:

14. October 2021 | 13:55 CET | by André Will-Laudien

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

  • Copper

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?

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NEL, GSP Resource, China Evergrande: How to find the doublers

  • Copper

Speculative investments are the salt in the soup on the stock market. Of course, those who rely on ETFs and funds over the long term via a savings plan can already do a lot better than the vast majority of savers. However, those who develop a good knack for speculative individual stocks can give their portfolio a growth kick. Even if many newcomers to the stock market can hardly believe it: 100% and more is possible. Using three stocks as examples, we explain what is important and what is not a good prerequisite for investment.

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28. September 2021 | 14:06 CET | by André Will-Laudien

BYD, Fisker, Kodiak Copper, Varta: Nothing works without Copper!

  • Copper

Electromobility is becoming increasingly crucial for the energy transition in transportation. And with it the research, development and production of drives, batteries and components. In addition to electricity storage, however, vehicle cabling and the assembly of e-components are also coming to the fore. Today, an electric vehicle requires three to four times the amount of copper as it did 20 years ago, plus the demand in industrial manufacturing processes. The earth's deposits are exhaustible, and copper, in particular, is pretty much on the edge. A spot price of just under USD 10,000 per kilo clearly shows how the markets are processing this situation. Rising prices!

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