Good afternoon,
Australia posted it´s largest trade surplus on record - obviously driven by iron ore.
bonds are weak again today ( German 10-year is now at 0,00 yield ) , following a set of more positive economic numbers ( European Services PMI pretty strong ) and some hope, that a hard BREXIT can be avoided. In the US, Services PMI is also positive…
Equities are racing, metals as well…nickel stocks fell for 31 days in a row now - at the recent pace, all LME stocks will be gone at the end of the year!
In my opinion, the market has never expected the worst case of a hard BREXIT -and at least for the last few weeks, has also hoped for a halfway positive outcome of the trade negotiations. In so far,the market will be a buy-the rumour / sell-the-fact situation. And the conservative investor should continue to progressively take a few chips of the table.
Quite a few placements today…to mention a few: Antipa Minerals, Cassini Resources….details tomorrow, once publicly announced.Looks like market conditions have improved somewhat, to enable smaller companies to raise some funds.
But I have to say, that there is no real interest in our part of the market. The only stocks running are the blue chips - and they are very much driven by iron ore.
Perseus - Frankling Resources increased their shareholding, mainly by excercising 44ct-options - good news for the company.
Matador Mining - that is interesting. I have never heard of them before, but Mark Clark and Nick Giorgetta acted as cornerstone investors for a 5 mill$ capital raising at 16ct, with a one-for-one free option, three years, exercisable at 23ct…The terms are extremely generous….I thinkw e all would have taken stock in the placement, with 2 very highly regarded mining professionals on board here. I am inclined to bulk at the current price in the market - 26ct - I hate to give that much to the initial investors, even as they are nice guys! But they will have a nice following in the market. I am surprised, that ASIC let´s the company et away with this extreme discount ( certainly incl the options ), without letting small shareholders having a bite via an SPP…The company has a 1 mill oz gold resource in Newfundland, Canada, incl a central resource of 800.000oz at 2.6g. I know nothing about it at this stage - but will certainly watch this stock.market cap is now 22.5 mill A$ incl the placement - undiluted for the options. So not a crazy valuation at all. Perhaps exploration stocks in Canada really are cheap these days….
Panoramic - the rights trading has finished! Nickel continues to run, and most analysts have targets of between 15- and 20.000 US$/t for the next few years. Panoramic will have full production in calendar 2020, and after that, for 7-8 years - most probably much more. Now is the time to buy…technically, all pressure from the rights issue is gone! I am sure, that the various, small hickups are behind us - the only question being, whether full production will be reached by year end, or say 3 month later. This is a risk I can take!
Have a nice evening
WS
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