Good afternoon
finally, there seems to be some activity in Australian small caps…not that insto´s are buying ( following the desasters in Dacian and Gascoyne they are still on strike! ), but it appears, that selling has dried up in most cases, and moderate interest is drving share prices higher. Certainly, the much better mood in gold also helps!
There is still a lot of deep value left at the junior end - just to mention a few names, like Sheffield, Metro, Panoramic , West African, Graphex, and probably also Breaker / Paringa / Australis / Tietto / Horizon, Liontown among others. Some of these names can do with a bit more cash - like Graphex, which is currently finalizing a placement - and that might well put some short term pressure on those names. But the mood is certainly better than it was 3 weeks ago!
Equities are continuing their more constructive mood, while bonds are seeing some pretty good selling today. The CPI in the States yesterday took the wind out of the bond-bulls for now! Metals are also looking better - copper is knowcking at the 6000$-level again, while nickel is having yet another strong day ( trading currently above 19.000 A$/t for teh first time since early March ( back then, it lasted up there for 3 days only ). Nickel stocks fell strongly again today - now at 150.500t vs 368.000t at the beginning of 2019. Not all of that is a sign of more demand than consumption, as more and more metal is being held in off-LME stocks these days -nevertheless, it´s a good indication of undersupply at a time, when the take-up of EV´s by consumers is only just starting ( and big numbers from EV´s are probably at least 12 month away ).
Breaker - announced some good drilling results from the recent start-up of drilling within their Borborema deposit, which is more and more shaping up to be a nice mine ( pre-feasibility study out in late September, next resource estimate out soon ). Especially with the A$ gold price at 2000 A$/oz, this remains a good prospect and a cheap stock! At least that´s what I believe - we will have a more definite chance to validate this view with the Pre-Feasibility in Sept
Have a nice weekend!
WS
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