Close menu




May 20th, 2021 | 09:24 CEST

XPeng, Kodiak Copper, NIO - Megatrend scarcity

  • Copper
Photo credits: pixabay.com

Bitcoin, Etherum and the entire crypto family are rushing into the basement. The reason for this is once again the Middle Kingdom. After a statement by the Chinese central bank that one may not use digital currencies for payment purposes, they lost more than 20% in value yesterday. China's market power is even greater when it comes to raw materials for the energy transition. Due to the scarcity of the corresponding metals, prices will rise enormously in the long term. Producers who offer alternatives in the Western industrialized countries can profit significantly from this.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: US98422D1054 , CA50012K1066 , US62914V1061

Table of contents:


    Industrial gold as a weapon

    The energy turnaround is to come; the faster, the better. With the amendment of the Climate Protection Act, the German government wants to tighten climate protection requirements and anchor greenhouse gas neutrality by 2045. The car manufacturers are overflowing with promises of quickly replacing gasoline and diesel engines with batteries. But they forget that the rapid shift from fossil fuels to a sustainable energy supply using renewable energy requires many metals that are scarce in the Western world. Lithium, nickel, cobalt and rare earth metals are needed for decarbonization. 80% of the production and refining takes place in China. Due to the further intensifying trade war and the increased demand at home, China is the world's largest electric car market. There will probably be less, and less of the cake of industrial gold left for the Western nations.

    Copper the new oil

    Copper is also critical to the continued development of green energy and is increasingly becoming a scarce commodity. The production of an electric car requires around four times as much copper as a car with an internal combustion engine. Currently, the construction industry is struggling with a lack of material supply. Due to strong demand, copper for cables and pipes is in short supply. According to industry insiders, there will be no normalization in the next few months, resulting in obstructions in construction site operations and significantly higher construction costs. The picture of excess demand shown is currently reflected in the copper chart, which has more than doubled since March of last year and is now reaching new highs almost daily. The shares of copper explorers have also risen in recent months, but there is still considerable potential to catch up with the copper price.

    Kodiak Copper with the best prerequisites

    The Canadian Company Kodiak Copper offers ideal conditions for a success story. The exploration Company owns 100% of the MPD copper-gold porphyry project in British Columbia, located in a productive copper-gold belt in a first-class location with excellent infrastructure. In 2020, the project's Gate Zone intersected significant copper-gold mineralization over a width of 350 m (east-west), a length of over 100 m (north-south), and a depth of 800 m, open in all directions. In the immediate vicinity are the producing mines of Copper Mountain, Highland Valley and New Afton. Kodiak Copper gained greater attention last October when industry giant Teck Resources took a 9.9% stake in the Company.

    Steady positive news flow

    With a cash cushion of CAD 14 million as of the end of December 2020, a total of 30,000 meters of drilling in several target areas are fully funded for this year. Thus, management promises a steady flow of news and an acceleration of the drilling pace. The Canadians also took action on the acquisition side. In exchange for 950,000 shares and additional payments, Kodiak Copper secured the Axe Copper-Gold Project. The acquired property hosts several significant historic copper-gold porphyry centers and has the potential for large-scale copper-gold porphyry mineralization. The Vancouver-based Company's stock also has potential. Following successful drill results last fall, the share price reached an all-time high of CAD 3.37. After bottoming out around CAD 1.50, the share is currently trading at CAD 2.16, still 50% below its high. The continued positive drilling programs are likely to put the old highs at risk in the long term.

    With 50% discount

    USD 66.99 was the previous high of the NIO share at the beginning of January. Since then, the Chinese electric carmaker has lost more than 50% in stock market value. In addition to the general market correction, the shortage of raw materials was also a decisive factor for the share price slide. Production was already suspended for a few days in individual plants in March. Due to problems with the procurement of batteries and the current global chip shortage, the e-car producer lowered its monthly production plan from 10,000 units to currently 7,500 units. Citigroup, which rates NIO as neutral, left the price target at USD 57.60 despite the current difficulties. The share price is presently quoted at USD 32.70. Therefore, there would be a turnaround opportunity of more than 70% here.

    Strong growth

    With currently 63%, the correction at the electric car startup XPeng was even stronger. The industry competitor has now announced its figures for the first quarter. Both sales and loss increased sharply. In total, XPeng delivered 13,340 vehicles from January to March, 487.4% more than in the same quarter last year and 2.9% more than in the fourth quarter of 2020. The loss in the first quarter of 2021 was EUR 98 million, compared to EUR 83 million in the same period of 2020. Chart-wise, XPeng's share price hangs below the prominent resistance level at USD 28. The chart would only brighten up at prices above USD 30.


    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 June 20th, 2022 | 12:58 CEST

    Nel ASA, Nordex, Nevada Copper, Siemens Energy: Energy Crisis 3.0 - Copper is the solution!

    • Copper
    • Hydrogen
    • GreenTech

    The copper market is constantly on the move. Along with Shanghai and New York, the London Metal Exchange (LME) is now one of the world's largest metal trading centers. In Europe, the LME is the benchmark for copper prices and metal trading. In contrast to other exchanges, part of the trading is still done by call and floor trading by brokers in an open ring. The LME copper contract is the second-largest exchange-traded contract on the London Metal Exchange. The demand volume for copper has been at a very high level since 2018, currently even at a 25-year high. Last week, prices came under slight pressure as the specter of recession flew through the trading halls. Where are the biggest opportunities at the moment?

    Read

    Commented by Nico Popp on June 13th, 2022 | 10:40 CEST

    Stocks on the brink - here is how you can trade: thyssenkrupp, Nevada Copper, K+S

    • Copper
    • Commodities
    • fertilizer

    When companies are on the brink of collapse, it is usually already over for the stock market: As a rule, share prices react quickly to corporate distortions. Sometimes, however, these difficulties are only anticipated by the market and exaggerated in the context of the overall market. One such example is thyssenkrupp. The Company currently has its back to the wall again. We look at the situation and draw parallels with comparable companies at differing stages.

    Read

    Commented by Fabian Lorenz on June 8th, 2022 | 13:50 CEST

    Shares: Plug Power and BYD with exclamation points! Patience is needed at Nevada Copper

    • Copper
    • greenhydrogen
    • Electromobility
    • Mining

    Hydrogen or battery, which is better? This question is often asked. The answer is simple: both technologies will play an essential role in the energy and mobility revolution. While batteries seem to be gaining ground in the passenger car sector, hydrogen has numerous other potential applications, such as commercial vehicles and ships. Plug Power and BYD put exclamation points on incoming orders and vehicle sales. At the beginning of the value chain are commodity companies like Nevada Copper, which has now suffered a setback on its way to becoming a copper producer. However, the price slide could also represent an opportunity for investors.

    Read