Good afternoon
not a lot happening in equity-markets so far today…and even less in bond markets. Not much in base metals, either, except for nickel up by approx 1.7%.…gold continues to trickle higher, even against a stronger US$. Only oil is a little stronger, backed by continuing trouble in Iraq, Iran and Libya.
The IMF cuts it´s forecast for OECD growth this year slightly to 3,3% - from 2.9% in 2019.
Bellevue Gold - Quarterly out today..29.000m of the major 80.000m drilling program have bene completed, delivering a lot of good results…At the Tribune Lode, 9.6m with 14g gold / 3m with 33g….at the Viago Lode, 5m with 11g / 3m with 20g. The above from infill drilling. At the Deacon Lode, 2.3m with 39g / 3.5m with 12.4g; at the Bellevue Lode, 3.5m with 12g / 2.8m with 47g and 3m with 2og…the latter from resource extension drilling. The company will continue to utilise 8 drill rigs until I guess April/May - the next resource update in Quarter2, potentially a new update for inferred resources prior to that. The company has a healthy cash balance of 20.7 mill A$ - 10 mill $ will be spent in the current Quarter, before drilling should quieten somewhat for the next resource estimate to be prepared. The dewatering of the old underground mine hast started, and once complete, will make it a lot easier and cheaper to convert resources to the indicated status. I continue to like them - they will also present at our conference 21.2.2010 in Zurich! Next real ttrigegr will be the next resource upgrade - the market has got used to good drilling results from them!
Strike Energy - Quarterly out today. Not much news to report…doing seismic and more work like that, before drilling again in the second half. The next trigger here could be the announcement of a drill rig in a few month time….but in the meantime, a very interesting comment in the Market Talk-colum of the AFR : late today , they said, that the neighbouring Waitsia-owners, Mitsui and Beach, would be close to signing a deal for delivery of their cheap onshore-gas into the giant North-West-Shelf JV, owned by a few major companies like BHP, Woodside etc. This would be major good news - firstly, Waitsia is very close to West Erregulla, owned by Strike/Warrego - potentially opening this door as well for them, and secondly, it would remove a major source of gas from the currently oversupplied, West Australian gas market. It could trigger a scramble for gas at reasonable prices in Western Australia. This is the space to watch!!!! If the Waitsia-deal comes true, very bullish stuff! A strong cash position of 27.2 mill A$ is another positive…but Jaws in the Cooper Basin seems to be a longway from being commercial - even though STX have not given up on it, yet!
Oklo - nice, but not spectacular drilling results from their Seko prospect in Mali - this time very wide, but lower grade intersections of 52m with 1,27g and 25m with 1,21 g. Certainly economic intersections! More drilling news over coming weeks, including drilling near their great intersection of 47m with 11g, reported recently.
Silver Lake - repoted a strong Quarterly today, with 68.500 oz at 1192A$ AISC - both significantly better than expected from both operations, because of better grades. Cash equivalents of 186 mill A$ will let them watch for aquisitions- perhaps Bellevue? Cash increased by 31 mill A$ in the Quarter. SLR increased guidance for the full year to June by 10%. The stock has had a good run lately, confirmed by the excellent results out today. They are probably largely reflected in the share price.
Resolute - increased hedging again today, by 37.000 oz to a total of 215.000 oz until June 2021. I guess they have had little choice, and it might have been driven by their relatively large debt position….not everybody will like the hedging in a rising gold price enviroment.
have a nice evening
WS
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