Good afternoon
the Sun King most have a that warm and fuzzy feeling again...45 Palestinians dead in Gaza , and the Chinese happier with him , as he overturns the sanctions on ZTE Corp.....what a disgrace!
Equities are shrugging off every bit of bad news these days - they are stronger in the US and are strengthening currently in Europe...bonds weaker in Europe...the 10-year holding at 3% in the States for now.
Metals are mixed - nickel is up quite strongly today, apparently on technical buying ( according to Bloomberg ).
Albemarle is reporting, that industrial customers now want 10-year contracts for delivery of battery-lithium - that is unheard of in the mining industry. Does not really sound as if battery-producers believe the story of ample supply coming! I think quality producers like Mineral Resources, who are heavily investing in downstream rather than just producing spodumene ( = lithium concentrate 6% ), are still absolutely ok to hold, or even buy. They have the added sex-appeal of being in the process to sell part of their lithium assets - presumably at a fantastic price. The company has a habit of looking after it´s shareholders ( well, the MD owns 11% of the stock ) , and I have no doubt, that we will be looked after again, if the sale price is exceeding 1 bill$....which the company does not really need for current expansion plans. By the way - it´s not that MIN want to get out of lithium - but the earnings are extremely heavily geared to it, and I believe, that they just want to balance the companies assets a bit better.
Peel Mining - the company announced some more drilling results from deeper drilling., which confirmed continuity with excellent grades. St.Barbara had a good idea of buying them earlier on, to currently own 16% of the company. But at 120 mill A$ market cap, and Foran at 50 mill A$, I know which one I would prefer! PEX have not even announced a resource as yet, while Foran is much more advanced, having completed a PEA and working on the feasibility study.
West African - have today completed the placement. Van Eck International Investors - that´s the Joe Foster managed fund, not the Index fund - have become substantial shareholder with 37 mill shares.
Highfield Resources - the company is currently fine-tuning the feasibility study - as if they have not had the last 2 years to do so???? The comapny is indicating higher capex, based on this work. The company believes, that this optimisation work will be finsihed by the end of August!! I am asking: What the f..k have you done over the last 12 month????And reading this announcement, it will not get just a few mill $ more expensive...they will also include the salt plant into Stage 1, not only Stage 2. And they even dare to ask for a 45-day extension to the ministerial deadline to answer recent questions! someone urgently needs the sack, I think...but I have not spoken to the company as yet.
Have a nice evening
WS
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