Good afternoon
markets are relaxing a bit, following some volatility last night in Asia. The Iranian retaliation was much weaker than could have been, and appears to me very much as a face-saving exercise - especially, if reports are correct, that they have warned the Americans prior to the attack.
German manufacturing orders start the year on a weak note.
Gold, which initially surged higher, is holding up well…trading just below 2300 A$/oz, which is record level and makes Australian producers look pretty sexy at current levels. My favourite and largest holding ,
West African Resources - despite it´s location in troubled Burkina Faso - is set to generate 300 mill US$ in it´s first year of operation, with a margin of a staggering 1000 US$/oz, before falling of. The pay-back period is getting shorter by the day, and production is getting very close. I am very excited to see their Quarterly later this month - looking at recent videos, they should be in production earlier than the planned June 2020. We are finally there! Succesfull comissioning should further rerate the stock. Very satisfying, when you have followed a stock for many years! With Evolution in the majors, West African in developers, and Tietto in explorers, I think there is good money to be made this year! These are my maine holdings in the sector, alongside Osino Resources in Canada.
Panoramic - after extending the takeover just before Christmas, IGO decided just after Christmas, to let the bid laps! Tactics, or frustration with little chance, to get Savannah? I guess the latter. Panoramic also announced the sale of their Canadian PGM-asset as planned - but to a different company. 4.5 mill Can$ will be received on cmpletion of the sale - I guess that might take a month or two - and 4.5 mill in three instalments. Good to have it done - even though in light of a massively rising Palladium price, it might turn out to have been a cheap sale. But it´s good to get the cash - Panoramic announced the other day, that the large diameter drilling for the ventilation shaft has hit bad ground conditions, again. I thought, that this shaft would be essentially needed to be finished by the middle of the year, to enable unconstrained production from the new ore body, Savannah North. But after speaking to the company today, I learned following: The ventilation shaft will be re-designed, which will take additional 3 month until Sept 2020, and will cost up to 4 mill$ more. But technically, this is not a major issue. Production could be affected - but only in a very small way, if at all. So this gave me much needed relief! I had originally been very concerned. The rights issue, which is fully underwritten, will close on Friday - this is probably also putting some pressure on the share price. I am only reminding you, that the largest shareholder, who is also represented by the chairman and owns about 35% of the company, did not accept the recent takeover, which valued the company at around 46-47ct. And last but not least, the Independent Report by KPMG valued the company at slightly more, without valuing exploration upside, with very little value attributed to the shareholding in Horizon Gold, as well as the Panton PGM project. So looking past all the current and recent hickups - I am still very convinced of my opinion, that PAN are worth a lot more today than the current share price does imply - setting completely aside, that the stock continues to be in play!
Resolute - announecd production numbers for the last Quarter today. Mako, their new aqusition, contiunes to do very well, as is the oxide circuit at Syama. The Syama roaster is now running at full capacity again, and the underground mine has delivered 400.000t in stock pile, ensuring a good Quarter . The company also states, that the Syama undergound mine is now fully comissioned,. If this is true, the stock is a buy….but certainly better to see this in numbers , once this Quarter is finished. In the meantime, the cash situation is quite tight - no room for many hickups!
Perseus - published video , showing that construction of Yaoure has started in earnest, and is in full swing. Production is planned for the end of the year, and all seems to be on track to achieve this.
Have a nice evening!
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