Good afternoon
unless we will have a big surprise, Germany will need to have a new election...Merkel did not manage to get everybody to agree on a Liberal/Green/Christian Democrats-coalition. Uncertainty is never good - surprisingly, equities as wella s curency are about unchanged here in Europe...while gold is still edging higher. Base metals are also unchanged - so no real action today! As the day progresses, the $ is getting stronger - but that was due to a very strong Leading Indicator in the States - the strongest since Oct 2013.
The interest in gold stocks remains surprisingly subdued, especially in North America...
One interesting statistic: The ASX Small resources Index closed up for the 7th, consecutive week. This has happened 9x over the last 23 years. Whenever this occured, the Index was higher 6-and 12month later ! Let´s hope, that the same happens again!
Crusader - surprise! The old MD, Rob Smakman, got replaced by Marcus Engelbrecht, who was until very recently the MD of Stratex, the partner in the failed merger. Obviously, Engelbrecht is the candidate of major supporter and chairman, Steve Copulos. I think it´s pretty obvious, that Crusader need fresh equity....they have Zero currently...but I think both Brazilian gold projects are worth more than the current market cap. Will be interesting, whether the new MD can do more with them, than the previous MD! While I liked Rob, the progress over the last few years has certainly been limited.
Finders Resources - announced metallurgical testwork results from their next open pit mine, Lerokis. While the feasibility study had expected 66% recovery, newest results indicate 88 and 82.6% recovery, after 230 leach days vs 1.200 used in the original study. This increase in recovery could add 60 Mill US$ ( or 45 Mill US$ for FND´s 74% stake ) to the project value - that´s equivalent to 8ct/share. Additionally, the new Reserve Statement should show higher grades, as recent drilling results have been very positive, and maybe also more tonnes. The Indonesian consortium delivered finally their takeover-document. Of interest will now be the so-called Part B statement ( to be delivered within 14 days ) , the answer from FND and it´s advisors, and a valuation. I think they will try very hard to have the Lerokis Reserve Statement out before that date! As you know, I think any valauation of FND will show, that the value at 3$ for copper is a lot higher, despite the small hickups currently being experienced!
Paringa - is making good progress in construction of their new coal mine, and also the loading station for the barge transport. They also report good progress in marketing the coal - but I think the market will only react to fixed, new off-take agreements.
Gascoyne - contrary to what I wrote last week, they in fact ARE making a placement today! Obviously, they needed a bit of extra money. As the signing of the bank loan, which was expected for Nov/dec, will now only take place in mid-Dec....Whenever that happens, I have my slight concerns. Anyway - any fund raising now will address these concerns, plus should give them funds for agressive exploration surrounding existing projects Dalgaranga and I stick with my previous advice, that this is a relatively easy and straightforward project, which will generate excellent returns at the current A$ gold price of just above 1700 A$!
Marindi - well, no luck in the courts, but luck with conglomerates! They have actually found 60 nuggets in their conglomerates property, just next to Novo Resources´ground. Whatever this will be - for now, the market likes it! I have my reservations....They have a few interesting properties - funny, that they rise ( probably ) based on the least worthy...or shouId be wrong with my very critical and cynical assessment of the conglomerate story!
Have a nice evening
WS
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