Good afternoon
equity markets weaker today - investors fear, that Hongkong protests and related actions by the US, could come into the way of a trade deal. Bonds, stronger, while metals don´t do a lot - except for nickel, which continues it´s malaise. Looks like the nickel bubble has definitely burst - despite very low nickel stocks on the LME. Reportedly, nickel demand from China is not very strong…On the charts, around 14.000 should be reasonable support for the metal
Mineral Resources - had their AGM today. very positive on Mining Services Division, which continues to be the back bone of the company - 280-300 mill EBITDA this year, and they see strong growth for it over the enxt few years. Iron ore division is also increasing production - but obviously, always depending on halfway good iron ore prices, as tehy will never be able to be competitive on costs with the big 4 producers. And as we all know - sold a good chunk of the lithium business to Albemarle at a great price, and now gained downstream processing as well. But the Wodgina mine, the flagship, on care and maintenance and waiting for better tiems for lithium -probably 2-3 years away. I cntinue to be a fan here - very strong balance sheet, and Mining Services making money at all times!
Panoramic - had their AGM today - after being in the job for a week, not too much could be expected frm the MD´s presentation. He is currently doing his Operational Revue, to be finished in 2 weeks…he gave a few hints in the presentation, what he is planning to do - and as I sadi yesterday: My strong impression is, that he knows what he doing!! Needed, I fear! The good news - though expected - is that the twin decline into the new Savannah North ore body has now reached the target, and should start producing some development ore, before real production from stopes is expected early in the March Quarter. The main event for PAN will be the announcement of the operational revue - which will also be the basis for the capital raising, which undoubtedly is coming. My guess - a raising of 30 mill $???
Horizion Gold - also had the AGm alongside PAN. The new MD of PAN, Victor Rajasooriar, is now Chairman of HRN. The scoping study has been finished, but not published. The company wants to verify a few things, and will also run one more drilling program for greater resource confidence. The 51% holding of PAN is not really material to them in the overall scheme of things - but I think HRN are a bit of a sleeper and could surprise, given the high grade open pittable resource for Swift ( 840.000t at 7,2g gold for 195.000 oz , within an overall resource of 1.39 mill oz ) could be toll treated, and the recent discovery of Altair Zinc/Copper shows early potential for something sizeable. It´s absoliutely impossible from the outside to get a feeling for the economics of gold production….but if I assume say 20 mill A$ for a pre-strip, followed by a margin of 300 A$ from the production of 195.000oz ( via toll treatment ) , the cash generated from the Swift open pit alone could be something in the order of 30 mill A$, which would already exceed the cureent market cap. I guess we will find out over the next couple of month or so, what the scoping study looks like.
Oklo Resources - I bought an initial position in them recently. OKU are having a very nice ground position in Mali, very close to the fantastic Fekola deposit, and also close to Barrick´s mine their. The company ahs had some promising results over the years, but todays 47m at 11g gold certainly topped those. The company is currently drilling in preparation of the first, maiden resource in April or so. Definetyl worth watching - elephant country - and I am sure, that a few of their neighbours are doing just that!
Lefroy - the same applies to them, though very different. The company ahs extensive exploration grounbd in WA, surrounded by Silver lake, Northern Star and Goldfields - with the latter, they have a very large exploration JV. LEX have had some initial success on acreage owned 100% by them, and announced some more good drilling results today: 19m with 4,5g / 17m with 2,4g / 6m with 5g are certainly notworthy! I met those guys recently in Perth..very experienced gelgist, and cmpany is chaired by Taurus-man Gordon Galt. Goldfields have been very successfull in exploration close by, and they are spending 25 mill$ to earn 70% of the project! What I like about Lefory: Strong 100% owned ground position, Goldfields spending, and potentially quick commercialisation of anything they find on their own ground, which stays at 100% ownership.
Have a nice evening
WS
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