Silent players in the Electric Vehicle domain presenting thunderous opportunity
Most are well aware of the revolution wrestling with the energy sector at the moment. Electric vehicles are changing the landscape of demand for the materials required to manufacture the much-needed batteries used in said vehicles… Most are well aware of the revolution wrestling with the energy sector at the moment. Electric vehicles are changing the landscape of demand for the materials required to manufacture the much-needed batteries used in said vehicles (cobalt, copper, nickel, lithium).
For good reason – for example, if electric vehicle sales were to grow to 2 percent of current new vehicle sales, the world would need to increase current copper production by 1.7 percent to meet the increased demand.
Other metals are also expected to experience supply shortages due to the expected increase in the prevalence of electric vehicles and other 21st century technologies. According to metals giant Glencore, if electric vehicles can reach 10 percent penetration, global nickel production would have to increase 16 percent beyond current levels to meet demand.
This demand shift has generated a significant buzz around companies prospecting and mining these minerals. But not all companies are getting a share of the news flow spotlight, why is this?
Redstone Resources (ASX: RDS) is a prime example. They are a company with a sizeable land holding in the highly prospective West Musgrave region, with a resource of more than 38,000 tonnes of copper, and recent drilling of the first of eleven prospective electromagnetic anomaly sites revealing substantial sulphide mineralisation. Excitingly for Redstone, this last point led to the remaining 10 anomalies being upgraded to immediate drill targets.
Despite all this, the company is quietly trading at a relatively small market capitalisation of around $4.5 Million and hovering around $0.012-0.015 per share.
This could be an exciting opportunity for savvy investors seeking a hidden speculative gem ready for the next chapter in the electric vehicle revolution story.
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*Reach Markets are paid a retainer for assisting RDS with Private Investor Management
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