Good afternoon
PMI´s in Europe were surprisingly strong, and also stronger than expected for manufacturing in the States - but Retail Sales in the States were down an unexpected 1,1%! The latter took markets by surprise - still, investors are still buying the expected recovery! A timulus program in the States is looking more likely
Base metals want higher, still…especially zinc and copper…nickel is now also trying to get into positive territory!
Gold tried to go higher this morning, but is largely unchanged late this afternoon!
Macquarie have increased their expectations for EV demand…they now expect EV-penetration of 12% in 2021, and 31% in 2025 for Europe. They have increased global battery demand to grow by an additional 12% vs previous forecast in 2021, and an additional 23% from previous forecast for 2025. I think they might be very right - the EV-trend is becoming stronger, and we will see contiuned strong demand for nickel, graphite, lithium, cobalt and copper over the next few years! As you know, some countries/States like England or California do not want ANY new sales of non-EV´s by 2030!
Geopacific Resources - incredible, what is possible in this market! The company raised 140 mill A$ at 42ct ( and in 2 Tranches, as well as a SPP , “assuring” underperformance until mid Feb ), without having the 100 Mill US project finance signed as yet ( I guess they have advanced it to a state, where it might be a formality now ). The market cap of the company is only 75 mill A$ so far! And this is for a project in Papua Neuginea, grading 1,1g gold/t, on a remote island! Good luck to them - I have to say, that I am absolutely impressed by this capital raising - but I did not take any…I think there are many things which could go wrong…
Chesser - announced some excellent drilling results from their main project in Senegal. the best results being 1m with 23g gold/t and 35m with 9,8g…But looking at it, I think the tonnage potential might be limited here. The market cap is just short of 100 mill A$ already…Anyway - I sold mine too early, and if I would still own tkhem, I would hold the stock based on these results.
Sheffield - I saw the first broker research today, following the FIRB approval…it values the company at 1,54 A$/share - but subject to confirmation from the updated BFS in the February 2021 ( I guess, but certainly during the first Quarter ). Well - I am certainlypositioned for SFX going higher! As you know, these things never reach their full potential, until they have show reliable production for some time - and that will be the case in late 2022. And so often, something is coming in the way, making some more equity necessary at some stage. But I would be very happy with 1 $ in 24 month time!!!
I might call it Christmas today, unless something very exciting happens tomorrow! The kids will ahve early holidays because of the virus, and we have to arrive in Austria by the 18th - after that, everybody arriving will have to go into quarantine! Returning late in Dec - and then 5 days quarantine!
If we should not speak until then, I wish you a great time, all the best, and a year coming up, which will hopefully be much quieter than this crazy 2020!!! I guess we all have done very well thios year - certainly, if you consider, that the world has just gone through a major crisis! But not everybody has done well - as usual, people with financial assets have been in the prime seat! So don´t forget to get your cheque book out before Christmas for the less-fortunate!
All the best!
WS