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Gary Cope, President and CEO, Barsele Minerals

Gary Cope
President and CEO | Barsele Minerals
Suite 1130 - 1055 W. Hastings Street, V6E 2E9 Vancouver (CN)

info@barseleminerals.com

+1(604) 687-8566

Interview Barsele Minerals: 'I have never seen a project with such good general conditions'.


Sébastien Plouffe, CEO and Director, Defence Therapeutics

Sébastien Plouffe
CEO and Director | Defence Therapeutics
1680 – 200 Burrard Street, V6C 3L6 Vancouver (CN)

info@defencetherapeutics.com

+1 (514) 947 2272

Interview Defence Therapeutics: Platform strategy the key to success


Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.

Humphrey Hale
CEO, Managing Geologist | Carnavale Resources Ltd.
Level 2, Suite 9 389 Oxford Street, WA 6016 Mount Hawthorn (AUS)

info@carnavaleresources.com

Interview Carnavale Resources: Good cards for long-term success


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:

21. July 2021 | 12:49 CET | by Armin Schulz

QMines, Varta, Siemens Energy - Who benefits from the copper shortage?

  • Copper

The copper price has moved significantly upwards over the past year. On the one hand, this is due to the increasing demand caused by sustainability topics such as renewable energies, e-mobility and global electrification. On the other hand, the metal has become scarce. Whereas 60 profitable copper projects were launched in 2008, only 36 were established in 2020, and this with declining mining values. In 2015 0.65% copper per ton was still being mined; this value will fall to 0.55% by 2025. Existing large copper mines will also need billions in the coming years to maintain their production levels. These additional costs will be passed on to consumers. Today we highlight three companies that either produce or need copper.

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  • Copper

The copper price had reached its interim high in May 2021 at around USD 10,500. Since then, we have seen a standard consolidation of 10-15%, which is not an unusual occurrence in an uptrend. The increase since the beginning of 2020 is over 100%. Copper mines have been able to post multiple performances in the same period, and the recent correction was accordingly somewhat higher. For many market participants, however, the medium-term scenario for the industrial metal is set. Since the political closing of ranks on e-mobility, demand for copper and battery metals has shot through the roof. Mine operators worldwide are alarmed; the currently recoverable capacities cover just 85% of the demand from 2022. Who can close the gap?

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  • Copper

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