Good afternoon!
Johnson with landslide! As it turned out, just too hard for No-Brexiters to vote for a hardcore socialist??? We will never know - but England is gone now! Pity!
Trump envisages to sign Phase One trade deal…well we will see what´s happening! The market wants details! We are sick&tired of this!
Base metals, initially stronger today, are now read …just.Palladium continues it´s amazing run, while gold is now slightly up - holding surprisingly well given the fact, that markets this morning were celebrating a trade deal! Perhaps some people are understanding, that gold should not be bought because of just trade wars!
The US$ is fluctuating against Euro - tendency:slightly weaker, again - the A$ st.ill relatively strong. More comments about a growth pick-up next year around the world. But this certainly assumes some halfway serious trade deal!
Interesting, how aalmost dramatically weak the larger, Australian miners have been today! Was thisin expectation of a trade deal, or are some investors expecting a strengthening A$? This could certainly happen, as the mood for a small growth recovery and stronger commodities in 2020 is getting better. We might well see a nice recovery on Monday!
Resolute - once again, are reviewing what to do with Bibiani in Ghana. Planned to produce 100.000 oz over 4.5 years, the project is pretty marginal. Macquarie gives it a value of 54 mill$ - unless gold is going substantially higher, this sounds about right to me. This is an old asset - it´s not that you suddenly will find another mill ounces here. I believe,, that RSG will be inclined to sell it for a relatively small amount - say 30-40 mill$ (?)…especially given their relatively tight balance sheet. Nobody wants to see more debt in Resolute, I think!It´s much more important to get the start-up of the roaster right over the next few days, and the underground mining operations of Syama. The next Quarterly should give some strong indications!
Cassini - management is exercising options worth 830.000$ at 6.8ct - not a large disount. I believe, that this amunt is relatively serious money for them, and hence, a strong indication! In January, we are supposed to see the PFS from Oz MInerals, finally - that´s only 4 -5 weeks to go! The stock is strongly undervalued - that´s assuming a positive study, which is a high chance.
Have a nice weekend!
WS