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Ballard Power, NVIDIA, SolGold - copper, processors and fuel cells for the portfolio

Mario Hose Mario Hose, news.financial
0 Comments| August 27, 2020

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The mobility of the future will be diverse. In addition to internal combustion engines, vehicles with electric motors will also define future everyday life. This politically motivated development will be supported by subsidies and premiums in various areas. Investors who would like to participate in this trend have the opportunity to buy the shares of companies that will be part of this development. Besides the well-known car manufacturers, suppliers and plant manufacturers will also benefit from this trend.


Electric mobility drives the copper market

An electric car needs on average three times as much copper as a vehicle with a combustion engine. This simple example makes it clear that this raw material will be in great demand in the future. Even though around 35% of the world's copper demand can now be covered by recycling, a large proportion is still needed for global electrification and there are many examples. The anode of a lithium-ion battery is usually made of copper and the cathode of aluminum. In total, such an energy storage device consists of about 18% copper.


Copper deposits for the market

Experts predict that the share of electric and plug-in hybrid vehicles will rise to 19% by 2030 and could even grow to over 70% by 2040. Whether this estimate will prove to be true is uncertain, but the demand for copper will also increase due to other industries. Against this background, SolGold (TSX: SOLG) is an exciting investment opportunity as the company has already discovered 9.9 million tons of copper in Ecuador.


Precious metals as a bonus

In addition, SolGold has already reported 21.7 million ounces of gold and 92.2 million ounces of silver. From today's perspective, the mine life expectancy is projected to be 55 years, CEO Nick Mather stated in a recent interview. The market value of the company is currently less than CAD 900 million. Given that SolGold has a total of 13 projects and that the current market value of the precious metals is significantly higher, in a nutshell, investors have the opportunity to participate in a bank with an affiliated copper dealership.


Technologies in the race

A name that is often mentioned in connection with autonomous driving is NVIDIA (NASDAQ: NVDA). However, the market value of the processor specialist is now more than EUR 260 billion. In comparison, the value of fuel cell manufacturer Ballard Power (TSX: BLDP) from Canada is still low at EUR 3.2 billion. The company plays an important role in creating hydrogen demand through consumption. Ballard Power's fuel cells are used in all types of vehicles and have established a good reputation over the past decades.

Imagination vs. values

At the end of the day, however, the investors themselves have to estimate how much future potential can still be exploited at these two billion-euro companies. In comparison, the chance/risk potential of the SolGold share is probably more attractive based on the values in the ground.


CONFLICT OF INTEREST & RISK NOTE
We would like to point out that Apaton Finance GmbH, the owner of news.financial, 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. Further details can be found in our ´Conflict of Interest & Risk Disclosure´.



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