Good afternoon
not much happening so far today - I guess everybody expects a rate rise in the States - bonds are little changed, equities in Europe slightly weaker, currencies little changed, and base metals looking stronger, as the day progresses. Gold looks pretty strong at 1325 US$
Cobalt jumped another 6% today! Now trading at 95.000$/t or 43 US$/lb!!
Has Zambia "learned" from Tanzania? The government claims, that First Quantum, the countries largest copper producer, underpaid 9 bill US$ in taxes over 6 years. This is not final - but it sounds - unfortunately - pretty much like Acacia´s experience in Tanzania. Would not be good for the continent, and certainly not good for Zambia - always assuming, that First Quantum have done the right thing. Zambia is a large copepr producer, with 850.000t p.a.
Holdings in the various gold funds are at a recent high - no wonder, given so many problems in the world!
Highfield Resources - 3 years later, and we are only three month away???? I cannot believe it! They updated the market today as to the Enviromental Approval for their potash projct in Spain. There are three issues outstanding: The relevant authority wants more info on the impact of seismic activity, and possible subsidence on local infrastructure, but more dangerously ( in my opinion ) , also more info on what HFR will do with the resulting salt-byproduct. The latter sounds more difficult to me. The authority expects an answer within 3 month - which should not be a problem. Given past experience, they will then take theirtime...say another 3 month?? As I said the otehr day - somebody must have mis-handled government relationships here - this sounds to b...y crazy to me. Unfortunately, I am still a shareholder, and I don´t quite know what to do with it...the project is basically a very sound and profitable project, but this approval process really tests my nerves!!!! And I would regard myself as a very patient shareholder, generally, used to the fact, that resources projects ex gold ( and ex Australia ) usually take a few years longer, than originally planned!
West African Resources - very good news here, already out yesterday: Extensive, metallurgical test work has given them 96.5% recovery of the gold from the M! underground resource, vs preliminary numbers of 90%. This is an extra 10.000oz or so in production p.a. for the first few years - going straight to the bottom line, without any additional mining- or processing costs! A big plus for my currently favourite gold stock!!! The updated feasibility study in June/July should be fun...the next resource update should be a few weeks late because of recent drilling success, so expected now sometime in April. By the middle of the year at latest, B2Gold´s major mine, Fekola, shoulde generate a lot of cashflow, producing at least 400.000oz p.a. at about 600 US$....given the small distance of their resource to West African´s asset, Sambrado, BTO are my favourite contender!
Graphex - completed a small 2.45 Mill A$ placement ( which leaves them with about 2 mill$ to raise additional funds with having to call a Special Annual Meeting ), to be on the safe side. Cash pre placement was probably around 1 Mill A$, and the company is in advanced negotiations with the planned, Chinese JV-partner, and other sources for financing. So beside of cash being potential squeezed, it will also improve the negotiating position of the company. Funds will also be used for an update feasibility study, which will incorporate increased resources, potentially increased production, and especially a much increased price for GPX´s special graphite ( which is up roughly 50% in 12 month, and for which the demand is only capped by current, very limited supply ). A recent broker report estimated the stock to be worth between 2.30-2.40 A$...I would not be surprised, if that should work out halfway correct. The placement was done at 28ct - the stock is trading at 29.5ct today. I participated in the placement, again inceasing my position in this excellent story.
Have a ice evening
WS