Western companies are now cut off from these for the time being, and the search for alternatives has begun. Strangely enough, the industry always likes to focus on the same countries and regions, while others are criminally neglected, sometimes justifiably, but in many cases out of sheer ignorance.
Ignorance, however, is a quality that will sooner or later take its revenge in politics, in economic life and on the stock exchange. Then suddenly, as if overnight, everyone wakes up at the same time and everyone tries to quickly make up ground and make up for lost time. At present, this mood of optimism can be observed very well in Greenland. Commodity investors are therefore well advised to follow the events on the island closely.
American billionaires set the pace
Donald Trump simply wanted to buy Greenland in the last years of his presidency. True, he had made his calculation without the residents and the government in Copenhagen, but even if the advance seemed at first glance like one of the many Trump embarrassments, it shows that the island has moved into the focus of the Americans.
This is not so far-fetched, because Greenland - as commodity experts have known for quite some time - is very rich in raw materials. Moreover, the island is virtually on the Americans' doorstep. But Greenland is also an ideal raw material location from a European perspective. The country is politically stable, Danish law applies, and the distance to European ports is comparatively short.
Because climate change is massively driving the demand for green technologies and thus also the demand for green raw materials, i.e. battery metals such as cobalt, nickel and lithium, and because the political decision has now clearly been made in favor of the accelerated use of battery technology, the raw materials required for these technologies are now the focus of attention on all sides. They are to be found on Greenland in a quantity and in a quality that quickly makes Afghanistan forgettable.
Financed by American billionaires like Jeff Bezos and Bill Gates, companies like KoBold Metals are securing large tracts of land on the west coast where attractive deposits are suspected. But industry giants like AngloAmerican have also thrown their hat into the ring.
Crowding on the west coast, free choice on the east coast
The fact that everyone is once again concentrating on just one area, in this case the West Coast, is part of the typical herd mentality of the industry. You can be annoyed by it or you can use it for your own benefit by deliberately setting up anti-cyclically away from the masses and looking for opportunities exactly where the others are not on the move at the moment.
In Greenland, this is the east coast. Here, the young explorer Conico Ltd. (ASX: CNJ; FRA: BDD) is active. The early bird catches the worm, as we all know, and Cornicos CEO Thomas Abraham-James was very early on his feet indeed, having secured a project area for himself and his company that measures a whopping 4,521 square kilometers.
Following initial positive drilling results, the quotes jumped. In the last few days, however, the price came back somewhat. This opens up an interesting entry opportunity for those investors who do not own billions and therefore cannot sit down at the table with Jeff Bezos and Bill Gates at KoBold Metals, but still want to get their foot in the door in Greenland.
Buying is how the anti-cyclicals like it: when prices are cheap and the mass of investors are scrambling elsewhere. But the same applies here as everywhere else in the industry. The risk is high, though, because the young company is only at the very beginning of its ambitious exploration work.
According to §34b WpHG and according to paragraph 48f paragraph 5 BörseG (Austria) we would like to point out that partners, authors and/or employees of GOLDINVEST Consulting GmbH may hold shares of Conico Ltd. and therefore a conflict of interest could exist. We also cannot exclude that other stock letters, media or research firms discuss the stocks we discuss during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between GOLDINVEST Consulting GmbH and Conico Ltd., whereby a conflict of interest exists, especially since Conico remunerates GOLDINVEST Consulting GmbH for reporting on Conico Ltd. This is another conflict of interest.