Good afternoon
risk-on continous too be on! Despite US interest rates rising somewhat last week, to 0,77% for the 10 year-bond from as low as 0,51% by the end of July. Equities are stronger across the board, led by Nasdaq.
Base metals are little changed, and gld is down a few$, with also little change in currencies today.
The Diggers & Dealers in Kalgoorlie started today, with 1850 delegates…all from Western Australia, as the borders to other states are still locked! There is no corna anymore in WA, and also there are no restrictions except for travel!
No major news on day 1, as the attention is still on the very large NST/SAR merger and it´s potential ramifications - the most tipped next target is Bellevue.
Nickel miners and explorers continue to get a lot of attention - especially Centaurus, Nickel Mines, Poseidon and Mincor.
Evolution announced their Quarterly production, which at 170.000 oz at 1198 A$ AISC and All-In-Costs of 1663 A$/oz ( incl sustaining capotal, grwth capital, royalties, G&A - so really everything except for tax ). Despite div-payments of 154 Mill A$, net debt decreased to a residual 180 Mill A$ ( from 196 Mill ). Looks like a good Quarter - full details later, once the full report has been released on the 27th.. The company has now applied for license for the new underground mine at Cowal, which should incease production by about 20% p.a.
Strike - have secured the large rig, which is currently being used for the West Erregulla wells, for anther 3 wells to be drilled in 2021 at the Walyering discovery ( 50% ventured out to Talon Petroleum ) and South Erregulla ( 100% owned by Strike ). These wells are targeting a potential resource of 1686 PJ ( Strike´s share ), which is roughly as large as the West Erregulla discovery! Following interpretation of recent 3D-work, Strike is giving South Erregulla a 57% chance of success. These two assets to be drilled ( and being the perator ) differentiate Strike from Warrego. Still - as this concept remains to get proved, I think Strike are cheap, and Warrego probably very cheap! I hear, that the current placement of Warrego is going very well. Stock should relist on Wednesday.
Panoramic - announced the sale of the Panton PGM project. In a way, this is a pity - but having said that, fr example Macquarie attributed zero value to it in recent research. The sale proceeds of 12 Mill A$ ( once due diligence is finished, latest by early Dec ) for 80% of the project, and potentially another 3 Mill A$ for the last 20% no later than 6 month after that should ensure, that the ramp-up to full production of Savannah can be done relatively easily with some bank-financing! The market is currently nt paying all that much fr fundamentals , but loves exploration. I therefor hpe, that the current drilling will deliver some juicy results, and that the company will also increase the exploration budget by 1-2 Mill$ for a few more holes! The stock remains to cheap - definitely in relative terms!
Centaurus - announced a number of excellent exploration results from their Jaguar Project in Brazil: 45m with 1,36% Ni/ 11m with 1,96% , 27m with 0,9% Ni frm step-out drilling - 45m with 1,07% Ni/30m with 0,93% Ni from jaguar Central - various results arund 10m with around 1% Ni frm drilling at Jaguar North. At the Onca Deposit, they hit 6,3m with 3.2% Ni. All the aove holes also show some values for copper and cobalt. Jaguar is really shaping up as a potentially large project, with a resource of 48mt at 1,08% Ni fr 517.000t of contained nickel, which also includes a high garde resurce of 20.6 mt at 1,56% Ni for 321.000t. The above results will add to this…and it´s not too hard to see a 30.000t p.a. project shaping up here. The stock has had a pretty good run ( I sold my stock to early ), but with those kind of results as above, there should still be room!
Poseidon - have a few DHEM-conductors at their Black swan deposit, which recently had some spectacular intersections like 9m with 10,5% Ni and 7.5m with 8,8% Ni. DHEM conductors have proved to be a very succesfull indicatior for nickel deposits in Western Australia and elsewhere. The stock reacted very strongly to the news. POS are currently drilling to test the first DHEM. I have to say, that POS are not that cheap vs say Panoramic - but in case of successfull drilling, they would probably go higher!
Have a nice evening!
WS
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