Good afternoon
sorry, firstly yesterday´s daily...I forgot to publish it:
markets are pretty quiet so far today...but metals are still trading a touch higher, except for nickel, which is oscillating just below the 2017-high of 13.000$/t. The US$ is weakening again today, helping gold higher as well. The European central Bank indicated some response to the strong, European economy could be taking place...I think that´s overdue! But the very strong Euro is putting pressure on metal prices late in the day - and same on European equities - so forget the above, earlier comments!
It looks increasingly weak for bonds...the long overdue slaughtering finally happening?????
I continue to like Catherine Deneuve! Alongside 99 other, mainly french ( surprised? ) female actors, she is calling for the right to misbehave...good on her! It was about time to hear a different voice, amidst all this sexual correctness!
Sheffield - had a big jump today. There had a been a large seller of 3 Mill shares, who seems to be done...also, just before Christmas, there had been a corporate deal in the mineral sands space, which would value SFX 10% higher than today, based on resources. But this transaction had been done on a project without feasibility study - SFX has had a feasibility study done, is in Western Australia ( and not in Madagascar! ), and is fully debt-financed...subject to mining approval, and has offtake agreements in place for nearly all production ( which is not an easy thing in this very concentrated industry ). A recent research report values SFX at 1,92 A$, using a 1400 US$ price flat for Zircon. One of the largest producers in the world, has just increased prices to 1425 US$+. SFX is still not done on the aboriginal land approval deal...that could take another 2-3 month, but potentially much less. I have not seen any mining approval fall over in Australia for years, based on this Native Title Agreement, and clearly, SFX are very confident of having this completed in the near future. Given the top quality of the project, I think it´s very worthwhile to accumulate stock at current levels, to expect a rerating on Native Title Agreement.
Prairie Mining - have steadily increased in price , and look like tehy might be making a new 4-year high in London today. There has not been any news, but the market is aware of more information to be released shortly with regards to the Chinese feasibility study, and possibly financing of the Jan Karski Mine in Poland, one of the two major coking coal assets being developed by PDZ. I have long believed, that PDZ is significantly undervalued - it looks like their time has come! Theoretically, the stock is worth 2-2.50A$ vs the current 60ct.
Foran Mining - finally, this little baby has broken out! Long overdue, given the great copper/zinc prices! And the company has just finished raising 5 mill$ at 49ct. Turnover has been strong ( at least vs recent history! ), and I think they are gaining recognition. Even after the rise - the PEA ( which arrives at a NPV above 500 mill Can$ at todays metal prices ) tells us, that the stock could still go up by multiples. But only for small players, and for investors with stamina, I think! The company is only capped at about 60 Mill$ today. I declare my personal interest!
And now to today! :
Germany finally has made a big step forward to a grand coalition between the Social- and Christian Democrats. That has fired up the Euro ...US$ has also broken significant support on the Charts. This could be a real trend change - unfortunately hurting us here in Europe, as the A$ is falling with it....Good for gold, which has shot right up to 1332 US$ currently - and also a new, recent high in A$ terms of currently 1690 A$/oz. Metals otherwise are only up a fraction - some profit taking following a few, very strong weeks.
Credit Growth in China has slowed down by more than expected, also helping to put a lid on the base metals today.
Market share of Electrical Vehicles in China increased to 1.9% in 2017, from 1.2%. Apparently, and according to Macquarie, it was substantially higher in december - but subsidy-changes from the 1st of January probably played a big role here.
West African Resources - started the new year with some more, spectacular drilling results. 4m at 74g; 9m at 17g; 16m at 15g; 3.5m at 30g; 10m at 54g - the resource is now well established down to 500m . A large part of teh drilling was infill drilling, to increase the confidence level from inferred- to indicated resources as part of the feasibiliyt study, to be published by mid-2018. A new resource will be announced late in the current Quarter. This stock is still one of my largest holdings - expected AISC of 650 US$/oz for teh first few years, at more than 200.000oz production p.a., are making this ( Burkain Faso-based ) project a no-brainer, in my opinion. The only question is, how much it´s worth...well I believe certainly more than today, and I am hoping for 60-65/ct share. The company is fully financed to finish the feasibility study, and ongoing drilling after that. he limited availability of serious, new projects are making WAF a strong coroporate target, in my opinion. Neighbouring B2Gold could be a buyer, as could Iamgold, who are already producing in Burkina. But there are several other, potentially interested companies, I believe, for this stand-out project.
Genex - the share price is not doing anything in the moment. reason is the option excercise - another 15 mill options could/should be exercised at 20ct before the end of February, dampening the stocks performance. But the current Quarter should slo see very important announcements: I am hoping for substantial progress on the financing side, as well as an offtake agreement at a guaranteed minimum price with one of Australia´s large power-distributors. Still - alongside Strike, Panoramic, Foran, Finders, West African, Prairie Mining and Paringa - one of my largest holdings in the fund!
Have a nice weekend!
WS
Schröder Equities GmbH
Seitzstr.7a
80538 München
Tel. +49-89-4613440-0
Fax +49-89-4613440-10
email: wschroeder@schroeder-equities.com
website: www.schroeder-equities.com
eingetragen im HR München, HRB 166985
Geschäftsführer: Wilhelm Schröder
The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by unauthorized persons