Good morning
will have to leave early today - going North to my families farm for the weekend.
Following Draghi´s comments yesterday, the US$ went stronger initially - but then tanked, based on his comments, that the EZB will revisit a potential scaling down of bond-buying in the autum.
Gold profited to a little degree - one has to say, that golds performance in light of this weak US$ is not very convincing.
Surprisingly, European equities are holding so far.
Base metals are having a strong day- aided by the US$-weakness, following2-3 days of consolidation. Copper is back up through 6000 US$/t and wants to make a new, recent high today.
A good Quarterly today from Regis - more on that on Monday, and a new presentatiopn from Finders, incorporating June production numbers - slightly weaker than the record-May numbers. More also on Monday.
Strike Energy - Quarterly out yesterday - and I am surprised, that the stock does not move a bit! Obviously, many disgruntled shareholders, sick & tired of waiting - I am sick & tired as well, but am buying more, if anything! The new MD I am very happy with...he is cutting costs, is relocating to Adelaide ( much cheaper to perate, and the asset is in South Australia ), which will give them access to relocation-subsidies. More importantly, he and his team have reviewed all technical aspects ( he has been in the job for 100 days now ). All three Klebb-wells are now comissioned with new pumps, Most importantly, the wells are responding very positively - gas flares at all wells, and production increasing strongly late in the Quarter - and I believe, continue to do so in July!
I am of the opinion, that we will see this Quarter what the company calls "technical Success" from these wells. This is NOt equivalent to "Commercial Success"., though. His team believes - and that has been indicated by the company before - that commercial success will NOT be erached with the Klebb wells, but with drilling horizontal welsl called Jaws 1 and 2.. I am not at all worried about this. Let´s face it - the old management ahs tried for 2 years or so to make a commercial success out of the Klebb wells - without getting there. What tehy have done though, is to pave the way for more succesfull wells, enabling learning from those old wells.
Technical Success is very important, as it will pave the way for JV-agreements with much larger companies, coming into the JV. This is what I have been waiting for for some time - somebody with big $, who can help paying for the learning-curve and eventually, make this stock the success I am still believing in! I understand, that the company is talking to various parties here.
The company indicvated, that talks with Orica re a new gas sales agreement are progressing very well - I am also expecting a solution here this Quarter. The situation is unchanged - the market is short of gas, and large consumers like Orica are desperate to get their hands on it!
And last but not least at all, the company is very hopeful to get "up to 8 Mill$ in grants from the South Australian goevrnment ( on top of the 2 Mill$ they have received ). Reading between the lines, I think STX would be disappointed, if tehy did not get the whole amount. That would certainly solve all cash shortages for some time!
I am of the opinion, that the new team is doing a rey good job -technically,, as well as on corporate level. Don´t loos faith - I think the time between now and year end could be very exciting for us shareholders!
have a nice weekend
WS