Good afternoon
The link to this years´s conference in Zurich, on the 23rd of February:
http://www.schroeder-equities.com/conference/
Surprisingly little happening on the currency-front today...the US$ just a touch down, which could have been much worse, given the government shut-down in the US, and a basix approval from SPD to build a grand coalition again in Germany.
Metals are strenthening a bit, again, as is gold. The IMF raised it´s global growth forecast by 0,2% to 3.9% - best growth in 7 years.
Panoramic - Quarterly out - not much to report, as they have not be in production. The company has received various financing proposals - but one thing is for sure: Those are getting better, with cobalt, as well as nickel and copper continuing to trend higher. Also, there are bits and pieces within the feasibility study, which the company can still improve. On the exploration front, PAN still have very significant upside to improve on the 8.3 year mine life at Savannah. On the negative side, head office as well as the maintenenace costs of savannah are eating away the cash - about 6 Mill$ p.a.. At some stage, the company has to jump and decide, what to do. My opinion still is, that nickel wll go higher, especially after 2019/2010, when all major car producers will have mny new models on the market.The latest major car producer to announce plans for EV´s has been Ford, which will invest 11 bill US$ until 2022 to advance their EV-offering. But PAN definitely don´t want to be a "nickel bank" - at some stage this year I am expecting a go-ahead to re-starting Savannah. At todays prices, the NPV of Savannah is after tax 210 mill A$, just under 50ct/share - the fortunes of nickel can substantially improve this number - not too hard to see a doubling of NPV, when you put nickel at 15.000 US$/t into the equation - and at those kind of prices, their second mine, which is also mothballed currently, would certainly come back on as well. As you know - I declar my interest!!And certainly, Peter Harold will present in Zurich 23.2.
Northern Star - have increased their shareholding in Echo resources to just uner 20%, which would be threshold of having to make a full takeover bid. EAR are a very reasonable story - but at nearly 200 mill A$ market cap, you are certainly taking a view on positive exploration!
Tiger Resources - I guess there might be a few shareholders left in Switzerland. The companies asset in Congo has been sold for 260 Mill US$ to Chinese interests, which should leave about 20 Mill US$ for shareholders. Not a great deal, for what has been a disappointimng operation, probably mismanaged! Interesting to see, though, that the Chinese are still buying resources assets!
Strike - the first parts of the massive drill rig have arrived...drilling of Jaws is getting closer! this will hopefully be the company maker for STX - a miss would see the share price half, I fear!
Genex - as I have been writing last time - the option exercise is not doing anything good to teh share price! Understandably, some option holders are financing the exercise ( 20ct ) with sales in the market. This detracts from the fundamentals, which are still very positive. The planned hydro pump power station is still dramatically cheaper than all batteries , and the current Quarter should see two major pieces of good news: An off-take agreement, and very favourable financing for Australian government agencies. Both would represent major derisking, and I guess trigger substantial, institutional interest in the story. The options will expire in about 4 weeks - great time to accumulate stock. GNX will also present again at our conference on the 23rd of Feb.
Have a nice evening
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