Good afternoon
it appears, that the Hongkoong situation is standing in the way for a trade deal….so markets are cautious today. Bonds are slightly weaker, as are metals - although this time, nickel is slightly up and might have found a base? Citi is expecting 17.500 US$/t for 2020, and a supply deficit of 42.000t.
Very low treatment charges agreed on by Chinese smelters for concentrate from Freeport indicate some tightness in the copper market. The value of Zambian copper exports falls to the lowest since 2016 last Quarter.
Genex Power - announced the financing for the Jemalong solar proejct today. At the same time, the existing facility for the Kidston Solar stage 1 project, operating since Dec 2018, has been refinanced at better terms, as the project has been successully operating for a while. The full facility is now 175 mill A$, subject to final documentation. Once done, consttruction of Jemalong can start, for delivery in the 4th Quarter 2020. The company is now in a position to sign an offtake agreement, if that possibility arises, to further derisk the project. This is another, very important step forward for the company - probably not underpinning the current share price on it´s own, but it will generate cash as well as value, until - hopefully - the large hydro-pump project at Kidston goes ahead. I am hoping for some info on the way forward from the AGM !
Mincor - today announced the succesfull placement of 35 mill A$ at 60ct - partially to Squadron ( Andrew Forrest´s investment company ) and Independence, who are a shareholding already, after selling their Long Nickel mine ( which is on care & maintenance ) to Mincor earlier on. I have to do some more work on Mincor - but the company has made the Cassini dicovery this year ( not to be mixed up with the company called Cassini ), which looks like an excelelnt high grade nickel resource. The placement will give them ample cash for exploration, and early development work for the future mine.
Fortescue - the MD, Elizabeth Gaines, was named the second most important business leader this year - only behind the CEO of Microsoft! Incredible recognition - even though I think she might have been lucky here, profiting from the work of the previous MD, Nev Powers, who really has been the force behind FMG for the last few years, and made it, to what they are today. As we know, timing is everything! But I think we should take it as a success to the entire management team of Fortescue since they were founded only 16 years ago by Andrew Forrest, and the unbelievable financial returns the company has generated more recently.
Have a nice evening
WS