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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


Bill Guy, Chairman, Theta Gold Mines Limited

Bill Guy
Chairman | Theta Gold Mines Limited
Level 35 (ServCorp), Intl Tower One 100 Barangaroo Ave, 2000 NSW Australia (AUS)

info@thetagoldmines.com

+61 2 8046 7584

Interview Theta Gold Mines: This team has already brought 20 mines into production


David Mason, Managing Director, CEO, NewPeak Metals Ltd.

David Mason
Managing Director, CEO | NewPeak Metals Ltd.
Level 27, 111 Eagle Street, QLD 4000 Brisbane (AU)

info@newpeak.com.au

+61 7 3303 0650

Interview New Peak Metals: Many chances for great success


02. June 2021 | 09:59 CET

Volkswagen, Nevada Copper, Geely - Things are heating up!

  • Copper
Photo credits: pixabay.com

The fear is going around. The new enemy of the economy is no longer the pandemic but the consequences due to the easing. In May, growth in Chinese industrial activity reached its highest level for 2021 due to rising demand from domestic and global markets. Commodity prices are skyrocketing due to supply shortages, and supply chains are broken, affecting the economy. Due to the green revolution, the trend of expensive metal prices will continue. The losers will be the end consumers, while the winners will be the producers of the scarce goods.

time to read: 3 minutes by Stefan Feulner


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

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Metals the winners of the energy revolution

Supercycle or not. The fact is that a CO² reduction in the economy and transport will require a radical change in the raw materials sector. Coal, crude oil and gas are losing importance. At the same time, metals such as cobalt, lithium, and copper will be in even greater demand than at present to expand capacities for generating and storing renewable energies. Copper is and will remain irreplaceable in the electrification of the global economy due to its chemical properties.

An electric car contains an average of around 83 kilograms of copper, four times as much as a car with an internal combustion engine. Inventories of the red metal are currently at a multi-year low, and at the same time, some copper mines were shut down last year. As the development of new mines takes several years, the copper price recently almost reached its all-time high since 2011 again.

In 2019, the market was short 383,000 tons. In 2020, the supply deficit rose to 559,000 tons, the highest value in more than a decade. If we now go by the statistics, the share of electric cars (BEVs and PHEVs) in the passenger car population in Germany alone was only around 1.2%. According to forecasts, the share will grow to 24.4% by 2030. That would correspond to an absolute number of about 11.55 million vehicles. As a result, a further surplus in demand is preprogrammed for the light metal in the coming years.

Profitability due to rising prices

As already described above, investments in exploration and the development of new copper deposits have failed to materialize in recent years due to low prices. Global demand is currently saturated by 10 larger mines and about 20 smaller ones. Thus, Goldman Sachs analysts stated, "The copper market is unprepared for this critical role!" The winners of this phenomenon are undoubtedly the large producers and smaller mining companies that have already secured promising mining projects.

One of the favorites is Nevada Copper, a mining company operating since 2007 and has a promising copper project at Pumpkin Hollow in Nevada, not far from the headquarters of Google and Tesla. Major players such as Blackrock and Pala Investments are already involved in the high-grade project, which contains gold, silver and copper. The Company's two fully-permitted projects include the high-grade underground mine and processing plant, which are now in production, and a large open pit project that has progressed toward feasibility.

Plant running at full speed

With postponements and shutdowns still occurring in recent months, the share price has been slowed and has not yet benefited from the rising copper price. Only at the end of April, Nevada Copper's target of processing 5,000 tons of ore per day was confirmed with the completion of the production shaft in the main area. The latest forecasts recently announced by the management clearly show the potential of the project. For the underground mine, annual production of copper equivalent to 77 million pounds is planned; for the open pit mine, Nevada Copper even assumes output of 200 million pounds. The stock market value is currently around EUR 323 million. If the forecasts come true, there is still a lot of room for improvement!

Outsourcing of the battery business

Volkswagen continues to upgrade and brace itself against solid competition from Tesla, BYD, Nio, Geely & Co. By 2030, the group plans to build six factories in Europe alone together with partners for a double-digit billion sum to produce battery cells. A Europe-wide network of fast-charging stations for electric cars is also to be created. In total, the gigafactories planned by the end of the decade are to have a total capacity of 240 gigawatt hours per year. In addition to Salzgitter, which will be operated without an external partner, a site is also to be built in northern Sweden.

To finance the overall project, Wolfsburg is considering an IPO of the entire battery business. "We are not ruling anything out for the time being - at least for the cell business." "The construction of cell plants is costly," said the VW Group Board of Management, explaining the considerations. In addition, the stock market players honored another plan of the VW headquarters. Thus, speculation arose again, according to which an IPO of Porsche AG is being considered. In the meantime, the Volkswagen share was clearly in the plus with 3%.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

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:

18. June 2021 | 12:33 CET | by Armin Schulz

Kodiak Copper, Deutsche Telekom, Varta - What is going on in commodities?

  • Copper

The hype around wood lasted until May 25, after which the rally ended and the price consolidated by a whopping 40%. Gold was trading above USD 1,900 last week. In parallel to this article's writing, the price is below USD 1,800. A minus of about 5.5% within five days, and the industrial metal for electrification and copper, dropped by 8%. Currently, all factors speak for a further increase in commodity prices. Real interest rates are still negative, and inflation should also remain high. The Fed could not help calm the markets, although interest rate hikes were not announced until 2023. However, the Fed intends to continue its bond purchases. Consolidation can always occur after strong increases, and so we will see long-term rising commodity prices, especially for precious metals and copper.

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09. June 2021 | 10:55 CET | by André Will-Laudien

NIO, JinkoSolar, Siemens Energy, Nevada Copper - This is the copper sensation!

  • Copper

The copper shortage continues as demand is continuously increasing. The current slightly weakening copper price should not hide the general state of the market. Resources are scarce, procurement markets are depleted, and demand remains at a high level. Current trends in the economy are further exacerbating this situation. Modern electric vehicles use about three to four times as much copper as a conventional internal combustion vehicle. It should not be forgotten that the construction of the charging infrastructure also requires significant amounts of copper. New mines are not currently in sight, but there is news from Nevada.

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09. June 2021 | 10:41 CET | by André Will-Laudien

BYD, Nordex, Kodiak Copper: The green revolution!

  • Copper

They have not yet been seen in the state elections of Saxony-Anhalt! However, the political green wave in Germany is starting to warm up for the federal election. Consumers expect greater awareness of the Paris Climate Agreement with corresponding measures in our country, especially in Europe. Already today, this is getting investors to focus correctly on the issues of the future. In plain language, this means continued tax incentives of the highest magnitude for so-called "environmentally friendly technologies" that include solar plants and wind power, including, above all, battery-powered mobility and hybrid vehicles. We shed light on some of the favorite stocks.

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