Good afternoon
equity markets are in holiday mode, while bonds continue to slip. Is the end of sub-zero interest rates in sight, as the world economy is looking a bit brighter for 2020??? The Swedish Central Bank raises interest rates, not because of their economy doing so well, but to avoid unintended consequences of ultra-low interest rates. It´s being discussed relatively widely today - an example for others in 2020? Is that our main risk for the new year - rising interest rates?
Metals are little changed, except for nickel, which is recovering today by 2.5%. Macquarie reports about a large, recent fall of stainless steel stockpiles in China.
Australian exports of commodities to hit 280 bill A$ this year, driven by iron ore, coal and LNG.
Not much news out today in our space!
Hot Chili announces good drill results from it´s project in Chile - 80m with 0,8% copper and 0,3g gold/t are not as mindboggling as recent results, but importantly, start from surface. More results are expected shortly. I still do not own any, but I am getting more tempted by the day!
Centaurus Minerals - has identified several new high priority drill targets at it´s Jaguar Nickel Sulphide project in Brazil. As i wrote recently - they are targeting to establish some smaller, higher grade deposits within the large resource, established by Vale over the last few years. More drilling results from the current program are expected in mid-January. Again - I do not own any, but I am tempted!
Apollo Consolidated - is another one I am tempted to buy! The company owns 20% ( free carried until decision to mine ) of the Bagoe and Liberty projects in Ivory Coast, which are being explored by Exore. Exore today announced some more strong drilling results from them. The main proejct , though, is the Lady Rebecca project, 150km East of Kalogoorlie. The company has an active drilling programm going on there, and the first resource estimate is expected early in the new Quarter.The resource could be not far away from 1 mill oz at reasonable grades, driven by many, strong drilling results over the year.
All three companies have sufficient cash for now.
Breaker Resources - broker Patersons took up coverage today, valuing them - at what they believe to be conservative assumptions - 55ct/share. Good news for the company - tehy are trading very friendless, despite the recent 8 mill$ placement at 35ct to a North American resources investor.
Strike Energy - Credit Suisse is teh first , major broker , which started coverage of the stock today! This is not to be underestimated, even though the timing of it is a bit useless - just a few days before Christmas, Australian fundies are occupied with drinks and Christmas parties! CS value the stock at 28ct, with upside to 50-60ct, depending on the outlook for gas prices in WA, as well as on exploration success. Like Rystad the other day, they see substantial potential for exploration success - every 500 mcf on top of the 1.18 tcf resource are worth 7ct/share, according to them.
Bellevue Gold - broker Argonaut sees medium term potential of 4-5 mill ounces in resources here, following a recent field trip - this is vs the current 1.8 mill oz , inferred resource. For the enxt resource estimate in the second Quarter 2020, they see potentially 500-600.000 oz as a maiden, indicated resource, and an overall increase of the resource by 500.000 oz or so. As I reported, BGL had several positive announcements with strong results over the last few month, and has 8 drill rigs working on the project. Interestingly, they have put a number to BGL´s recent announcement, to dewater the old undergound mine, of 6-8 mill A$ to open up access as a base for future resource-upgrade drilling from underground.
Have a nive 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