Good afternoon
Composite PMI in Euro area ta 55.2 still pretty strong, but manufacturing PMI slipping a bit more - while doing well in Japan, and strong in the States. manufacturing PMI there is at it´s highest since mid-2014.
Turnbull, the probably most faithfull vasall of the US government, in Berlin today, Macron and Merkel in the States later this week.
Speculation in metals on further sanctions hase more or less evaporated....all prices back to normal in industrial metals except for Alu. Nickel, following massive swings last week, is back to 14.260 US$/t - that´s a nice price, but certainly a bit disappointing vs the fantastic prices achieved last week of up to 16.800 US$/t. The US are also softening sanctions on Rusal, provided Deripaska gives up control. I am sick & tired of being at the mercy of politicians! Gold is also retreating a little further today, as the US$ is quite strong. Equities are up but having a slow start to the week.
The A$ is making recent lows against the US today.
West African - have extended the underground mineralisation by a furtehr 90m at deapth. Every drill hold now takes 3 weeks to drill, and in to tal 5 weeks to assay results. The new resource will now be announced together with results of the final feasibility study, in early June. Later than expected for the resource, earlier for the study. I acn assure you, that this is not another breaker. Every 100.000 ounces increas the NPV by about 50 mill A$, according to Sprott. I fear we will be needing a bit more patience here - but unless gold falls completely out fo bed, I am still very convinced, that West African are cheap. If corporate action does not happen, resulting in WAF going it alone, they might start financing the development themselves - that will also include quite a bit of equity, once the study has been published
Galaxy - produced less lithium last Quarter than expected, -16% QoQ. The slight hick-ups in production continue, which probably explains MIN´s comments recently about better than planned pricing for spodumene.
Gold Road - increased the forecast of the planned capex to the higher end of the originally expected range. This is all still within the parameters sugegsted in the original agreement with Gold Fields, but interesting to see, that cost pressures in the industry are definitely emerging. The timing for comissioning has also slipped a little, from 3rd Quarter the 4th Quarter 2019.
Foran Mining- finally some research from a respectable broker! Paradigm have initiated coverage with a 1$ valuation, which is based on slightly higehr operating costs, and loing term zinc prices of 1.10 US$ ( 25% lower than today, but probably fair ), copper of 3.10 US$ ( vs 3.13 US$ today and probably pretty conservative ) , and a Can$/US$ exchange rate of 85ct ( vs 78ct today, and very conservative ). On that basis the broker arrives at a tarhet price of 1$/share. I would be happy with 80ct for now!
Have a nice evening!
WS
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