Good afternoon
metals are still battling with yesterday´s Chinese numbers and are weak once again. Nickel is down by 500$ or so but mind you - it´s still 1000$ higher than at the turn of the month!!
Today, ZEW confidence in Germany surprisingly rose. ( obviously, numbers taken before the drone attack ). Industrial Production in the US has been very strong last month as well - you would think, that these numbers counterbalance weak Chinese numbers from yesterday - but China is just so much more important for metal demand than the US is!
Equities are a little weaker again, as the world tries to digest, what´s happening in Saudi-Arabia. No major moves in currencies or bonds either. Trump - for a change - is supporting sentiment by saying, that he does not want a war! We are happy with precious little from him!
Evolution - signed two relatively large earn-in deals today, with Musgrave to spend up to 18 Mill A$ ( and 4 Mill over two years ) on some earlier success the company has had on some of it´s tenements in Western Australia, and with a private company in Queensland, in trucking distance to the Mt.Carlton Mine. Evolution also received inclusion in the Dow Jones Sustainability Index Australia - only the second gold miner to be included.
Liontown - announced some more drilling results from their No.2-project, Buldania. Some nice inetresections ranging from 10m with 1% LiO2 to 19m with 1,5% and 14m with 1,7%. The deposit is still open along strike, and at depth. Generally, the results start from at least 50m of depth. The first resource statement is due for November - but I doubt, whether this one will be as good as Kathleen Valley - though it will most probably be worth something. Unless the resource estimate will bring a positive surprise, I think LTR will concentrate on their flagship-project.
Graphex - much do about the recent Syrah announcement. SYR reported about heavily and quickly falling prices for battery-graphite, and some production cuts. Other market participants dsipute that strongly, one of them being Walkabout Resources, the otehr one Grapex. Broker Bridge Street is seeing some strong indications, that prices are not as weak as Syrah makes us believe. Rather, they believe in bad marketing strategies. In any case, tehy see even slightly rising prices for the large flakes, which will predominantly be produced by Graphex, and expects them to receive prices better than the ones used in the prefeasibiliyt study. The results of teh final feasibility study are expected in November, leading to financing of GPX´s mine before the end of the year. Personally I believe, that this time table for financing is tough to meet, even with their financier heavily involved in the study. But I totally agree with Bridge Street, that this stock is very cheap indeed. Given that SYR are the largest graphite miner listed in Australia, and their well-documented profits, this little company might not show it´s true value before they are in production early in 2021 ( my guess ). I continue to be a relatively large holder, and strong backer of GPX.
Paringa - hopefully some light at the end of the tunnel here. John Middleton, ex-Director of Gelncore´s underground coal mining and manager of several coal mines in his life, will become a non-executive Director, specificially to provide guidance on PNL´s new coal mine in the US. Him taking the role should derisk the company somewhat - and he is obviously seeing a good chance of Poplar grove becoming a success to lend his name to it. The company recently update on production and remains confident to achieve name plate production of 1.8 mill t on an annualized basis by the end of this year. I think this might be crucial to secure the full financing from it´s PE-partner - not sure about it, but any PE-financing always has a security net built in ( well, security for them!! ). I don´t dare buiyng more at these bombed out levels - but I am holding them!
Genex - new presentation out today…as I said before - dirt bloody cheap but few seem to want it! I am very confident still on this one, and am holding a very large position privately as well as for the fund. There is still a very high chance to complete the transmission agreement ( as you know, already announced by the government ! ) as well as the JV-deal + equity injection! Analyst value it between 45-and 80ct - I would be very happy for now with 50ct some time late next year or early 2021 and I believe this to be a realistic target. By that time, construction of the much-needed hydro project should be in full swing,a nd Jemalong, their second solar plant, will be up and running.
Have a nice weveing
WS
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