Good afternoon
The PPI in the States lower than expected. German GDP rowth in 2019 was 0,6% - the lowest since 2013, but the 10th consecutive year of growth.
30-80 mm of rain expected in NSW for the next 2-3 days…let´s hope for a lot!
Equities Europe are down a little today - but stronger in the States. Kudlow saying, that the government is planning on even lower taxes by mid-year.
Platinum and Palladium are absolutely smashing it today - the combined price in A$ is a new all time high of 4734 A$ currently, in Rand Pall is up by 80% since 1.1.2019, Plat is up by 27.5% and gold by 20.7%…something like Sibanye must be cheap, I guess! What a fantastic aquisition Stillwater was for them - at the time, it was an ultra-agressive move and looked pretty crazy, given the massive debt involved they took on! And I guess Norilsk looks the same, still yielding 9% for this year according to Bloomberg - and earnings estimate would not take into account this years massive move in PGM prices!
Iron ore also continues to rise - nearly back to 100 US$/t - great news for all the big boys!
Base metals are mixed, with nickel gaining nearly 3%
The Center of Automotive Management says, that market share of EV ( incl Hybrids ) in Germany increased from 2- to 3% last year, to a total of 109.000 new cars - ahead of Norway with 80.000 EV´s, China was down by 4% to 1,2 mIll cars, and the US down 10% to 324.000 . Demand in the Netherlands was up by 150% to 70.000 . Europe is gathering pace…but is still small compared to China/US! 2020 will be an important year, with a large range of new models hitting the market - especially the new mass-market model of Volkswagen. The research body expects a small increase in Chinese registrations this year.
Osino Resources - the Canadian company, exploring in Namibia, has raised 10 mill Can$ at 0,78 Can$ including half a warrant, exercisable at 1,05 . Market cap is now 62.5 mill Can$. Excellent deal for the company, in my opinion! Small discount to the share price, and giving them ample money to go full steam ahead in 2020/2021! Recent drill hits indicate potential for a large, low-grade resource - with better grades hopefully complementing it. My relative, Heye Daun, who is the MD, is doing a great job here! Without the placement, I think the recent success in exploration would have driven it to 1$ - but that´s the way…small companies always have to look at their cash position! Placement was taken up by a wide range of international gold funds, incl what they call “insiders” in Canada. This placement has put the company on the radar screen of many investors, I think. The stock is not cheap in so far, as they don´t have a resource as yet - but this cannot be the priority. For now, they have to get a feel for the potential of their assets, which are close to two existing mines. And all indications are very strong. I think this is a great stock to have a really good look at - but keep in mind, that I am biased as a shareholder, as well as a relative! This stock fels very much like Auryx in it´s early days, which is now producing 170.000oz p.a. . But until then, a lot of water will flow down the Isar!
Resolute - have sold Ravenswood and thereby, completely exited Australia to concentrate on Africa! 50 Mill$ front up, and 50 mill in a note, yielding 6% and redeemable in 4 years. That does not take away all concerns with regards to their cash position…but 50 mill is better than nothing, and Ravenswood needs a lot more capital over the next 1-2 years. A satisfactory ramp-up of Syama underground remains paramount to the stock.
Have a nice evening
WS
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