Good afternoon
Retail Sales in the States a little weaker than expected, while other numbers were meaningless and in line with estimates. European car sales, have been quite strong last month, as they have been in China. The last US-numbers today have been weaker. Perhaps the forthcoming election is having some impact on the consumer? Trump is very close to Clinton in the polls...just 3-4% between those two...Beware of the day!
Following a very strong day yesterday, metals are a little weaker today...as are bonds. Gold under some pressure by early afternoon, and could break some chart points today. The oil price is recovering by a small amount - I still believe, that we will see oil prices between 40-and 50 US$ for quite some time to come. Good for the miners, but not very promising for debt-loaden energy companies in the States!
A gold mine owned by Barrick in Argentina has a very limited cyanide spill...the mine had some issues before, and is currently suspended. It produces 600.000oz of gold at about 900 US$ AISC, at an elavation of 4500m.
The UK government approves the 24 bill US$ Hinkley nuclear power station.
The A$ looks on the charts as if it has had seen the top....could spend the next while between 72- and 75ct, in my opinion.
Goldman´s are bullish on my favourite subject, nickel! Their base case is, that additional 15% of Phillippino nickel ore production will be suspended - possibly more. It then raises the question, how much of this production will come back longer term, based on improvements of enviromental standards of those mines. Goldman´s forecast for the nickel price is 12.000US$/t in 6 month time - but they see downside after that, once and if production will come back. I am wondering, by how much improved enviromental standards will increase Phillippino costs, and hence, costs of Chinese NPI-producers? Goldman´s can see much higher nickel prices, if substantially more than another 15% of nickel ore production would be shut by the government. We should find out by next week! In any case, I am still holding my large position in my old favourite, Panoramic....
West African Resources - under some pressure since yesterday, under quite heavy turnover, despite announcing another set of good drilling. The wet season is over, and two drill rigs are working continously, which should see some more good news for the stock like yesterday´s 11m with 18g ( outside of the current resource )over the next month or two, before the new resource estimate as well as feasibility study will be announced closer to year end. The orebody is not as compact as the first one, and will have a much higher stripping ratio - but also much higher grades. I bought a few more today, as the stock should be in value territory again ( it´s trading under the last, heavily oversubscribed placement at 30ct today ). WAF have about 20 mill$ cash in the bank - only 2-3 mill$ needed to finish the feasibility study and hence, much room for further exploration.
Breaker Resources - spoke to the MD Tom Sanders today, whom most of you have met in Zurich. As Indicated before, tehy might well be on the something very sizeable....The company has now established mineralisation with some good grades over 600m of strike length, and has had some good intersections previously from an area, which is 1.6 km to the North, having very similar characteristics. They are drilling in between currently, and will drill further North as well. They are also excited by the presence of sulphide lodes, which in many mines in W.A. are responsible for underground mines, going pretty deep usually. If the company can indeed prove sontinuity, the sky is the limit for this one. Tom has run this company extremely frugally, and has been living from hand in mouth for the most part of it´s 4-years existence. Tom has paid himself a very low salary, and alwways only raised enough money for the next drilling program. The small cash position makes it mandatory to have another placement soon - this time, I believe he might be raising 5 mill$ or so, giving him enough cash for the next 12 month. The way this stock goes in the moment, he should have no problem in doing so, and for risk-investors, it might provide a good opportunity with very substantial upside. I am pretty excited, I have to admit, and am not selling any!
Have a nive evening and enjoy the weather! Very said - this might be the last day of summer!
WS
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