Good afternoon
Lagarde to become ECB-boss? That would be good news, I think - once the news broke, European equities went a little stronger.
ETF Gold holdings rise again..despite the little setback in the price of gold. They have increased by just under 4 mill oz since late May to teh highest since 2012.
Not much macro-news out today…
Equities continue their positive run today - don´t ask me, why metals are so weak! nickel is down again, holding just above 12.000 US$ in the moment. Gold is a little stronger - in A$, just short of 2000 AS$/oz again.
I had some more conversations with Australian contacts re Sheffield and Metro…the more I talk about them the more I become assured, that both stocks represent extremely deep value. If you have not read it, you might want to have a look at yesterday´s report.
Panoramic - are selling the Thunderbird PGM-project in Canada. Macquarie had valued it at Zero - PAN have it in the books at 4,5 mill A$. Hence teh sale price of 9 mill Can$. One little problem, though: The sale is conditional mainly on the buyer to raise the money first! In any case - there is a good chance, that they will sell it, while analysts have not valued it before. PAN continue to have good upside from PGM´s via their Australian apnton project, which is much larger, and strategically of more interest, as it´s close to Savannah, their existing mine. The forthcoming Quarterly will be important for teh short term performance of PAN - obviously, there are some doubts in the market as to they went over the Quarter. Whatever the Quarter will look like - I have no indication otehr than the share price, that it will be bad , PAN remain a good medium story with very stronge xposure to the battery-nickel market. As we can see in the case of lithium, the EV-market needs some time to ramp up to meaningful numbers, but in the emantime, a very strong market for stainless steel continued to support the price.
Liontown - They continue to hold up at around 11ct, which is a great effort, given the general weakness in lithium stocks. This tells me 2 things: The market anticipates continued corporate interest in lithium assets, and 2. the forthcoming resource estimate should be very nice at up to 60 millt at 1,4% of LIO2
Graphex - a reserach update following site visit from their house broker, Bridge Street, reads very well…Their analyst was pretty happy with senior government meetings incl the Minister of Mines, and also confident of GPX conevrting some of the inferred resources to indicated, one of the conditions of financier Castlepeak. The new estimate should come out this month. There have been some delays to the DFS, which will now be announced in October, about 3 month late. It appears, that reasons for this are outside of the companies control. He has a valuation of 163 A$, even including a large equity raise from Castlepeak and existing shareholders at only 23ct ( which I fear, is not that unrealistic! ). I continue to hold a serious position in GPX and am convinced, that the detailed work of MD with his financiers will continue to derisk the project. A bit of help is also needed from a sensible government - but all indications are, that Tanzania is very keen to get the project off the ground!
Bellevue Gold - broker Cannacord have inceased their valuation of BGL to 1$ from 80ct amid signs, that there is a lot of resource-growth left. They expect an increase of 250-400.000oz at 9-10g/t , which is a little lower than the current resource garde of 11.8g, but would still be excellent. It will be hard to continue the meteoric resource growth from the last 12 month, but Cannacord expect a number of 2.5 mill oz or higehr in 12-18 month. This expectation does not appear unreasonable to me.
Have a nice evning
WS
WS
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