Good afternoon
trees don´t grow into the sky! Some profit taking in equities tody, as well as in base metals. Bonds are stronger…for now at least, longer dated yields don´t want to go higher!
The EU stimulus budget has been put on hold because of Hungary and Poland…these guys don´t want to to sign-up as the stimulus payments can be stopped, if a country does not adhere to basic, democratic rules. As we know, this is the case…terrible, that this happens within the EU!
In the US, stimulus is realistically also on ice, at least for this year…
And Bank of America reports from their survey, that market participants are as bullish as never since 2002 on equities. Not good - but a caveat: Fund managers with a total of 500 bill US$ took part - that is just about the size of a medium-sized fund manager these days!!
Macquarie turns negative on gold, as they are expecting a substantially steepening yield curve next year - long bonds in the US possibly topping 2% yield from now 0,9%, and gold going to 1600 US$. Goldman Sachs re-affirm their expectation of 2300 US$ for gold….I have never been a fan of Goldman´s…but I think they are much closer to my expectation than Macquarie in this case!
Gold ETF saw relatively heavy outflow recently - about 1 mill oz in only 6 days. No good….
Tietto - are starting a new, 70.000m drilling program to increase their resource in Ivory Coast from the current 3 mill oz…Their pre-feasibility study is due late in the 1.Quarter 2021 - we will get more clarity , once that has been announced. The market is still having doubts about the quality of the resource.Tietto have nearly 60 mill A$ left in cash - so they will never come to the market again until decision to mine!
Panoramic - respected broker Foster issued some new research today, increasing their price target to 24ct. It´s based on realistic assumptions for nickel and the currency - but still halfway conservative on costs, and very conservative on production….As one client said today: Would be great if thy can get it going at the third or so attempt! I can only see one issue: Shortage of labor…assuming, that the nickel price will not fall like a stone!
Osino Resources - announced more low grade drilling results, potentially extending the strike lengfth of their Twin Hills deposit substantially. 27m with 1,22g / 76m with 0,75g / 22m with 1,19g are not what I call a mine-maker - but I have little doubt, that they will over time also have better grades. Another step in the right direction for them! The potential resource continues to grow with this sort of intersections. For a starter operation, I would certainly like to see some more, better grades as well!
Have a nice evening!
WS
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