Good morning
even though the gold price is holding up nicely, it feels a bit tired to me - that´s despite continuing inflows into the big gold ETF in the US.
I am leaving to Zurich later today - so different to the norm, I am finishing this update during the morning our time.
There is some value-hunting around in europe today - stocks are rebounding nicely eraly in the day, and metals also look like they will put on a halfway decent performance today
Copper production in Peru continued to rise strongly in April - but zinc production is under heavy pressure, increasing the shortage of this metal. I still believe, that zinc is by far the best base metal to own - copper I fear is not looking sexy for 2016, and probably 2017, before demand catches up with new production.
Regis - continues to get good press, based on their recent exploration success just 2.5km South of their existing mine Garden Well. Several intersections of around 70m , grading 2.5g gold, are certainly üpromising for a sizeable maiden resource later in 2016. Currently, the average grade of production is only 1g/t. But as so many, Regis are currently fully valued, at today´s gold price of just under 1750 A$/oz.
Crusader - the company has started drilling in Brazil a few weeks ago - some ersults should be available this month - and I would expect some good headline numbers here, as most of teh early drilling has been infill into their very high garde ore body, to increase the confidence level. The resource has been infreed so far - gardes around 12g/t - so small, but extremely high grade. Drilling such a thing should deliver some spectacular results, and the market tehse days is certainly reacting to good exploration. The sleeper in the portfolio is definietly Borborema, with it´s large reserve ( at least large relative to CAS´s market cap of 34 mill A$ ). In the hands of a producer, something like Borborema should be valued at 100 Mill A$ or so = 100$ per oz of reserve. the company has done some -so far - limited work to optimize the old feasibility studies, and has hiked a new development plan, which is going for something like 80-90000 oz of yearly production, with AISC significantly below 900 US$/oz.
Jurunea is small at this stage - 30.000oz p.a., perhaps a little more - but it should be seen as a starter project within a potentially large resource, and should only cost 10-15 mill$ to bring into production.
Iron ore is washing it´s face, I believe. The company has a few startegic options here, and before they go into production at Juruena in 2017 ( I believe and hope ), I would not be surprised to see this asset being sold.
Have a good day
WS
P.S. If you want to have some fun with hot little Graphex, look at the below link for their new presentation:
http://www.graphexmining.com.au/wp-content/uploads/2016/06/0020.pdf
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