Good afternoon
Sydneysiders are getting there daily carton of cigaretts for free these days…pretty bad news for the city!! But it should be a lot cooler the next few days, bringing some relieve!
South Africa´s electricity blackouts reach record levels, hurting the mining industry. Not good to have a blackout, when you need a lift to come up from 4000m depth! And also not good, to have to restart a smelter!
Markets are nervous ahead of Central Bank meetings, UK-elections and not least, the 15th of Dec-deadline on more tariffs…
While Chinese exports yesterday were weak, Germany´s exports were surprisingly strong…
There have been various comments from China, suggesting more support for the economy…leading to a recent high of the iron ore price, as well as copper.
Plat/Pall-complex strong…Citi forecast 2500 US$ for Palladium in 2020…the combined price for both commodities is 4130 A$/oz, yet another high. Base Metals are slightly up , incl nickel, despite stock piles rising by 14.000t - strange games
Fortescue is hitting consecutive, new alltime highs…
Takeover rumors surrounding First Qnatum, the large copper producer…Chinese names as well as RIO are being mentioned…
Legend - came back trading yesterday…drilling results, where great, but not nearly as good as the rumors…15m with 1,07% nickel and 0,75% copper are nice - and within a 70m disseminated sulphide section. of which 40m of assays are still pending - are nice, but don´t make a mine yet! We will have to wait for more results here to see, whether the Fraser Range can deliver another nickel mine !
Oklo Resources - reported another outstanding intersection from Seko, just 30 km or so from the famous Fekola Mine in Mali, of 65m with 7,1g gold. Looking at the drilling, and despite some more, recently announced top-results, this does not look like anotehr multi-million ounce deposit - at least not for now. The really strong numbers have been received from a relatively small footprint. Nevertheless, these results are very promising, and should lead to a first resource estimate in the second Quarter 2020. OKU are holding a lot of prospective ground in the vicinity of a few great mines, and Seko is just the most promising of it´s assets. Worth watching!
Resolute - have completed the repairs of it´s roaster at Syama ( essential to treat sulphide, underground ore ) on time and withing budget. The company has also used the downtime for maintenance work, which will probably extend the continued operation to January 2021, without downtime for maintenance. The roaster will start treating ore in 5 days. It´s not merely routine to bring a roster back on, so the market will probably watch it, until it´s all working as usual again.
Metro Mining - announced another strong month of production for November, even though not as outstanding as the previous two month. The companmy stated to be on track to deliver at the top end of production-guidance for this year. Well, with only 270.000t needed to get there ( following 452.000t in Nov ) this should not be too hard, evenm with the mine closing down from Christmas for the usual 3-month break ( due to the rainy season ,and associated high swells ). The final decision to proceed with the expansion from 3.5 millt to 6 millt p.a., is still oustanding, pending the finalisation of detailed engineering. Financing via the Northern Australian Infrastructure Fund, on very preferential terms, has already been announced. Stock is very cheap - but once the enxt Quarterly is out, it will enter a quiet phase until April.
Lynas - have announced, that the company will build a new cracking & leaching plant in Kalgoorlie. Good news for Australia and the old gold mining city, creating some 200 permanent jobs in a space, which could well see more to come in the future.
Have a nice evening
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