Close menu




March 29th, 2021 | 10:30 CEST

Xiaomi, SunMirror, Geely - An incalculable risk!

  • Commodities
Photo credits: pixabay.com

Electric vehicles currently account for around 10% of the cars sold in Germany. Since the "VW Power Day," the race to see who can jump on the electric car bandwagon the fastest, has officially begun. Whether Volkswagen, BMW or Daimler, the manufacturers, also driven by politics, are overflowing with promises of how quickly they will replace gasoline and diesel with the battery. However, it is still unclear where the lithium for the battery cells will come from. Other required raw materials such as copper or rare earth metals are also in short supply and are produced almost exclusively in China. There is a threat of scarcity and thus a price explosion that cannot be calculated. You, too, can participate in this development.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: KYG9830T1067 , CH0396131929 , KYG3777B1032

Table of contents:


    Energy turnaround as a trigger

    The main thing is that our future should be low-carbon. Politicians are pumping billions into the economy for sustainable investments to produce wind power plants, electric cars and solar plants. The ethical disadvantages are large open-cast mines in the countryside where copper ores are mined, inhumane working conditions underground with heat and dust in silver mines and companies that extract cobalt in dictatorships are skilfully ignored. More worrying is that this carbon-free earth creates an extreme demand for metals that has never occurred in this form before.

    Supercycle at the beginning

    The investment house JP Morgan had recognized it months ago and had already proclaimed a multi-year supercycle for raw materials. Indeed, prices such as copper are rising to multi-year highs. Nickel and rare earth metals, also critical raw materials for renewable energies, are only at the beginning of long-term upward trends. According to one study regarding lithium, the essential raw material for powering batteries for electric cars, demand is expected to increase by 25% per year until 2028. To make matters worse, nearly 80% of all raw materials are produced in China.

    The Middle Kingdom has virtually established a monopoly here. The dependency is enormous. The smoldering trade war between the US and China, which has been expanded since last week with the imposition of sanctions by Europe, is likely to lead to drastic price increases. For some time now, the Middle Kingdom has been restricting the supply for export. Now the Chinese want to go one step further concerning sanctions against the USA. The plan is to set up export controls for 17 rare earth metals, with the goal being to slow down the production of US fighter jets.

    Desperate search for alternatives

    Politicians and business leaders are alarmed. Alternatives are urgently sought outside China, which governments already subsidize. The goal must be to ensure a secure supply chain for rare earth metals outside China for the future. The approach of the Swiss SunMirror AG sounds logical as well as promising in this respect. Led by an experienced team that has worked in large, sustainable mining companies, it has created a multi-asset producer that focuses on the most robust long-term growth drivers through new technologies, such as the renewable energy sector and the electrification of transport.

    As a result, the portfolio already includes 4 prospective properties with significant proven reserves of lithium, cobalt and nickel, as well as iron ore, in addition to the precious metal gold. The focus of the deposits is in Western Australia, in the mining centers of Kingston and Mount Keith, which have a long history of high-grade gold mining. Past high-grade discoveries have included over 18,900 ounces of gold, averaging 30 grams per tonne. In addition, high lithium grades have also been found there. Due to the substantial increase in tin and lithium prices, the Company plans to advance the Moolyella project this year. High anomalous lithium, tantalum and tin have already been detected in initial samples in the 96 sq km area.

    The SunMirror AG share is currently traded in Düsseldorf and Vienna. In addition, trading in Frankfurt is to be made possible soon. A listing on the London Stock Exchange is also planned for the second quarter. The Company has an extremely interesting long-term approach. The rise in raw material prices is likely to intensify over the next few years due to extreme demand.

    Numbers stagnate

    Geely, a Chinese electric carmaker focused on the luxury segment, fell short of analysts' estimates last week with its annual figures. Annual sales of 92.1 billion yuan were down 5% from the previous year. Net income for shareholders also fell year-on-year to 5.5 billion. The investment house nevertheless remains optimistic and left the buy rating. Only the price target was lowered from USD 50 to currently USD 46. Currently, Geely's share price, in which the Swedish car Company Volvo also has a stake, is quoted at USD 20.45, which is significantly below the price target issued by JP Morgan.

    New player

    As previously reported, technology company Xiaomi is planning to enter the electric car business. The plans, which the Company initially denied, are becoming more concrete. To this end, the Group is cooperating with Chinese carmaker Great Wall Motor Company, according to a report by Reuters. The release could take place as early as this week. The number 3 of the world's largest smartphone manufacturers announced an online event for March 29.


    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

    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



    Related comments:

    Commented by André Will-Laudien on March 27th, 2024 | 08:30 CET

    Watch out: DAX record chase! Automotive stocks in the fast lane: Mercedes-Benz, Globex Mining, VW and Tesla

    • Mining
    • Commodities
    • hightech
    • Electromobility

    The DAX 40 index is chasing from one high to the next, surpassing the 18,400 mark yesterday. In addition to artificial intelligence, it is primarily high-tech and defense stocks that are moving the market. The automotive stocks are still in the doldrums, as an expected decline in GDP also means smaller household budgets. Nothing is worse for the industry than the postponement of new car purchases until next year. The stockpiles are getting bigger, and dealers are plunging into desperate discount battles. However, the market is changing noticeably. Currently, there are clear buying candidates; we analyze the current situation.

    Read

    Commented by Juliane Zielonka on March 22nd, 2024 | 07:45 CET

    BYD, Globex Mining, Mercedes-Benz shares: The energy transition is picking up speed with these companies

    • Mining
    • Commodities
    • Electromobility
    • renewableenergies

    BYD in China is regarded as innovative and successful with its wide range of models and brands. The Company has become one of the top ten car manufacturers and is the global leader in the production of new energy vehicles (NEVs). In the fourth quarter of last year, BYD even overtook Tesla with over half a million electric vehicles sold. BYD is now pushing further into international markets in order to maintain its growth trajectory. The increasing demand for electrification also means a higher demand for the corresponding raw materials. Globex Mining is well positioned in this regard; with 247 different projects and over 40 years of industry experience, investors benefit from the unbeatable expertise of the experienced management team. Mercedes-Benz leadership has reason to rejoice. The figures from the last financial year are solid, and the salaries of the Executive Board have been generously increased. Who is really picking up speed now?

    Read

    Commented by Stefan Feulner on March 5th, 2024 | 08:55 CET

    Globex Mining, Rheinmetall, Fisker - Correction nearing its end

    • Mining
    • Commodities
    • Gold
    • armaments
    • Automotive

    The German economy is shrinking, and there is no sign of an end to the downward spiral in the current year. Only the defense industry, which was dubbed socially harmful before the Ukraine conflict, is acting as a growth engine, with shares in the sector rushing from one high to the next. The growing and likely continuing demand for defense goods is increasing the need for critical metals. After a prolonged correction, copper, lithium, and others may now have completed their bottoming out.

    Read