Good afternoon
PMI´s in China and Europe have been pretty strong for October…it remains to be seen, how economies will fare this month, following some strong Covid-restrictions! PMI´s in the US also positive - especially for manufacturing and new orders!
The elections are certainly occupying everybodys mind…
from a slow start, European equity markets are very strong now -up by 1.5-2%. The US also stronger, but probably held back my the election. Base metals also a bit weaker in the morning - but are green now by late afternoon. And gold is finding some friends in Europe, as well as in US-hours, trading at 1895 US$ right now.
Most Australian borders internally are open again now, which should alleviate some labor shortages for miners in Western Australia.But tomorrow, Australia will be very slow because of Melbourne Cup Day - even though it will take place without any visitors and the usually celebrating! But with COVID not an issue in Australia at all - hopefully not only for now! - the day will be full of long lunches and many drinks, without any doubt!
Queensland had elections on Saturday - the existing Labour-Government has won the election, which should be rather good news for Genex, which has experienced strong support from it in the past - even though the last missing piece of the puzzle, the maintenenance costs of the transmission line, has not been fixed with them as yet.
Last week finished witha few bad Quarterlies…
Oceana - very weak Quarter from haile as well as Macreas - and that´s just about all gold production they have in the moment, with Didipio still on halt and NZ ex Macraes being completely revamped. I fear there is very little reason to look at them - I cannot see the stock outperform anytime soon, as there are no indications for Didipio getting back into production!
Western Areas- had a horrific Quarter from both existing mines, as a seismic event prvented them from normal production. This came as a total surprise to the market - in my opinion, they would have been required to report this earlier! They are in the middle of developing their new mine, which will have generally higher production costs than the existing ones…I can see why they bought the stake in Panoramic - without Savannah, WSA will go backwards soon! But I have to say, that the near-term outlook for them does not make a potential paper-bid for PAN any sexier!
Marvel Gold - raised 5,7 mill A$ at 6ct, which does not come as a big surprise. They have had limited founds to drive their exploration push in Mali,a nd while 5,7 mill$ is not anything fantastic, I understand that the placement went into some very good hands. I would think, that the company did not want too much dilution at the current level, either. The wet season in West Africa is over,and we shoudl see some very active drilling from Marvel - and in fact many others- over the next few month. Colid does not seem to be that much of an issue in most parts of Africa - at least for now! I did not take part in the placement, as I already have a large position!"
Panoramic - updated on development of the ventilation system, which is going extremely well! They had targeted 54 m of development in October, and managed 122m! There is a chance now, that this thing will be finished a month or even two earlier than planned - provided they don´t run into any problems. But for now, this is excellent news. the market has been a bit cautious , as the problems with the ventilation shaft have been a major drag on mining Savannah as planned.
Have a nice evening
WS
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