Good afternoon
Chinese trade figures today got markets pretty excited: Imports rose by 5.2% YoY, vs expectations of 2.5% - indicating more strength of the Chinese economy.
Base metals very strong earlier on - copper is giving back some of the strong gains now. But zinc is making a new high, up by nearly 3%, and nickel is up by 3% as well, hitting a new 1-month high. Gold is profiting from ongoing BREXIT talk, as well as the weak US$. So more fun to come here, hoppefully - US gold mining Indices are up by 5% and trade at new highs.
Nickel is doing well because of the impending strike at Cerro Matoso, as reported, and on the relatively militant wording of Philippines new president, who specificially mentioned his home state, Mindanao, where more than 40% of the countries nickel ore production is based, as being enviromentally damaging. Last but not least, oil is trading strongly up as well.
West African Resources - announced some drilling results yesterday. The results in itself were nothing spectacular, but the holes had been drilled mainly to check previous RC drilling with the more detailed and secure diamond drilling. Previous results have been confirmed, and the core can be used for density estimates for the updated, bankable feasibility study which has just started. The results were from the M1 North deposit, which is shaping up as being a nice add-on - but the "real" stuff is in the M1 South desposit, were gold grades have been much better. The company has started a large drilling program for both parts of the resource, as well as for step-out drilling, and the next few weeks/month should see very good news flow. The stock has come back a little, following the listing of the last placement a few days ago - that was done at 12.5ct, and it always had to be expected, that some investors would take the short term profit of 30% or so. In my opinion, a good time to accumulate some stock. As with so many gold stocks, the deep value might have gone - but the upside frome xploration, and delivery of the updated, bankable feasibility study should still be significant.
In the emantime, the amazing run of lithium/graphite stocks continues...I am looking at a few of them, mainly Kibaran Resources, and a new IPO called Graphex - but I am still not that sure, that I will find good value in the sector. The other metals, which should be looking good, like Rare Earth, are still not finding any market interest - it might be more worth while to search for value here!
Have a nice evening and enjoy the ride!
WS
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