Good afternoon
incredible days in the US-tech market….Microsoft, Apple, Tesla , Inteland Amazon with incredible Quarterlies ( as well as the Australian star, Atlassian ) and big moves, while Facebook is struggling!
Following earlier attempts to go higher, equities are weaker today….while base metals are about unchanged( surprisingly? ) and gold is back above 1580 US$ currently. The A$ is being pushed below 67ct to the US$ today - testing 10-year lows - A$ gold price with a new all time high of currently 2366 A$/oz
China will be largely on holidays at least for next week as well, disrupting the economy. And as analysts point out - when SARS hit in 2002/2003, China´s economy was dramatically smaller , especially as a percentage of the world economy. The number of infected people has now increased to more than SARS - but it remains largely confined to China at this point. Looks like the outbreak is being handled quite well - but as I said - the economic impact will undoubtedly be felt around the world. Surpeisingly, Fortescue yesterday, commenting on an excellent Quarterly Report, said that not a single cargo had been cancelled as yet
Tonight at 12 pm, the POM´s will leave Europe. Let´s hope, that relationships will improve from here! We like our love-hate with the English!
Freight rates are falling like a stone!
West African Resources - Quarterly out today and they are saying publicly, that comissioning will start this Quarter! That is 3 month earlier than originally planned! Mining has started on 21st of Dec at the open pit with 7 trucks and two excavators on site. The plant is basically done on he mechanical side, while electrification is in full swing. The underground development is going very well - development ore should be mined in March. So I think we will see more or less full production from he beginning of the financial year, if comissioning goes well! I have a lot of respect for engineers, who develope a mine somewhere in the middle of nowhere - but even more so, if it goes that well! Let´s hope, that they will continue to do so well on the homestraight! They continue to be one of my largest positions…
Panoramic - thanks god, that they recovered today! The Quarterly brought nothing new on the operational side - that was announced with the new guidance yesterday. But my confidence in the new mine, Savannah North, was bolstered again by strong infill drilling results…long intersections between 1.5% and 2.5% nickel should be in line with the reserve grade of 1,53%, after mining dilution. And again - they are still in “change of control” negotiations! Interesting enough, the MD of IGO has been publicly asked, whether tehy would contemplate making a new bid - and he said “never say never”. The company has just under 24 mill A$ in cash, and while they are burning cash in the moment and until Savannah North is in serious production, they have time on their side to get something done on the debt-side! All indications are, that the company will avoid another equity raising, which would be very damaging!
Tietto - the Quarterly did not contain so much news...the company ahd previously released a new resource ( as at early November - I guess cut-off mid-October ), TIE had a resource of 45 Mt at 1,5g gold/t for 2,15 mill oz of gold, which includes a high grade resource of 1.4 mill oz at 2,2g/t. Drilling with 4 rigs - and soon 5 rigs - which are all company owned and therefor, the company is a very cheap explorer. They will come out with a new resource estimate in the 3rd Quarter of this year. Tietto have raised 17 Mill A$ in Nov/jan and are well cashed up, spending about 2 mill$ this Quarter. They are planning to finish a 50.000m drilling program by the end of the 3rd Quarter 2020. Some people regard this little company as the best prospect in Ivory Coast. I cannot judge on this - but I agree, that the stock has a lot of potential, and I am a shareholder.
Breaker Resources - raised 8 mill A$ at 35ct last Quarter with a gold-focussed, US fund. They announced their Quarterly today . No stunning drilling results in there, but some good intersections from new areas, but all within a few km from their existing, 1 Mill oz resource. I think for Breaker, it´s make-or-break this year - the market is becoming a little impatient, which might be unfair - but it seems to be the case, looking at the share price. I think most people agree, that there is considerable potential - but Breaker needs to show this year, that the resource will be mineable.
I hope you will have a nice weekend!
WS
Schröder Equities GmbH
Seitzstr.7a
80538 München
Tel. +49-89-4613440-0
Fax +49-89-4613440-10
email: wschroeder@schroeder-equities.com
website: www.schroeder-equities.com
eingetragen im HR München, HRB 166985
Geschäftsführer: Wilhelm Schröder
The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by