Good afternoon
ISM Manufacturing late yesterday was pretty positive.
Merkel survived - just! I admire her patience!!!
European equities exhibit some relieve today, as are the metals.
Resolute - announced an updated feasibility study for Syama Underground today, their main mine. Excellent stuff: Resrves up by 38% to 3 mill oz ( grades down 0,1g to 2.7g ); mine life until 2032; AISC of 746 US$ ( improvement of 135 US$ ); but pre-production capital increased by 20 mill US$ to 116 Mill US$. Also needed: nearly 100 mill US$ in ramp-up capital. The main difference to the old numbers is the use of autonomous mining of the sub-level cave mine. This is pretty sophisticated stuff for every miner - I guess in Africa, that´s even harder to get started without any hick-ups. And tehse increased risks are the only real negative - but one which is not to be underestimated. The mine has still excellent exploration potential - I think nobody has any doubts, that more ore will be defined over time. Syama will produce 270.000 oz, once in full prduction for the first few years. This thing is not without risks - but the potential returns are strong as well. Analyst value the stock between 1.50 and 1.80 A$, while most, larger Australian producers are trading above their fair value .
Not much more to report today! I might be watching Sweden-Switzerland now...seems to be an interesting match!
Have a nive evening
WS