Good afternoon
we are having a late entry to our resources conference in Zurich , Panoramic Resources. Please find following link for invitation/registration/presenters
https://www.schroeder-equities.com/conference/
I am very happy, that we will be able to have Victor Rajasooriar , the new MD, finding the time to come to Zurich!! Panoramic is one of the most widely held small resources companies in Switzerland, and so much has happened at Panoramic since last February - some production issues, capital raisings, management change, takeover bid etc etc….I am very keen to see, what Victor, who is an impressive MD, will be able to tell us about production progress, progress at Panton, as well as at Horizon, which I believe is worth much more than the current share price does suggest!
The CPI in the States was a touch below expectations and is still very subdued at 2.3%
JP Morgan with the most profitable year ever, at 36.4 bill US$ and above estimates. Citi also with a strong earnings report.
Equities are seeing little change in prices today. Base metals recover during the day - nickel is weaker , though quite a bit above the lows. Copper is up again. Palladium with yet another record today, and gold is trading above it´s lows, but down a few $.
Battery stocks in China ticked up again today, and there was strong follow-through of Australian battery-related mining companies. Mineral Resources, which also profits from the strong iron ore market, made a new 18month high today.
Endeavour dropped takeover-talks with Centamin today.
Oklo Resources - announced a few very good drill hits, 2 km South of their main location , Seko in Mali. Best holes were 37m with 3,2g gold/t, and 29m with 3,5g. The company is mobilising another drill rig to drill the gap, from next week. Quite a few more results are outstanding still, especially from follow-up drilling of the recent hole, which found 47m with 11g gold. The company is still well cashed up from the placement late last year. There is a lot of work left to be done ahead of the first resource estimate in the 2nd Quarter, and most probably, after that! OKU are shaping up well…
Saturn Metals - the same can be ais about them. The company has announced several rounds of positive drilling results since Nov 2019, including todays best result ever of 12m with 10 g gold, 36m with 1,3g and 13m with 1,2g gold/t. The company ahs so far established a resource of 700.000 oz at just above 1g. Grades are obviously a bit skinny - but the last few results will not only increase the resource, but should also increase the average grade. Their are continuing to do a very good job with little money…but to to be a real chance of success ( = a mining project ), we need to see a bit more of the same. The market cap of 29 mill A$ is not demanding.
Fortescue - reportedly, the discount for 58% iron ore is widening again - but the price itself is holding up extremely well at about 96 US$/t. The forthcoming Quarterly should be very strong, as production looks like having been good, prices strong, A$ weak. Some analysts are tipping a pay-out of 80% of profits, given the relatively low capital needs! A big dividend could be announced, once again - filling up the bank account of Andrew Forrest, who´s charity gave 70 mill A$ recently as donation for several bushfire-related causes!!! Good on him - we have not heard of something large coming from Gina Rhinehardt, who is estimated to be even wealthier than him!
Panoramic - the recent rights issue got 72% acceptance - that´s a little disappointing, given that the largest shareholder with around 35% took up his full entitlement. Again and again amazing to see, how shortsited investors can be! We are looking forward to updates in the Quarterly report, how the change to contractor mining is doing - as you can imagine, that can be disruptive. But I continue to see great value in PAN - mainly because of Savannah North, but also because of the hidden value in Horizon Gold ( the 51% holding could be worth 50 mill $ or more!? ) and Panton PGM ( anybodies guess, but potentially a similar amount or more). Following the rights issue, there are 763 mill shares outstanding, valuing the entire company at 228 mill A$ ( which should be roughly equivalent to Enterprise Value as at today ). I think we already would have a new bid on the table today, if not for the reluctance of the major shareholder to sell - in fact, I believe, that IGO would also be there still, if they had a chance to get the company?!
Have a nice evening
WS
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