Good afternoon
US services industry is very strong, while in Europe, manufacturing is stabilizing, and the overall PMI was better than expected.
these Americans are crazy - well they probably are, but they are certainly crazy about their Tesla, and anything related! The Tesla-virus spilled over to lithium stocks, and many things to do with batteries…Albemarle went trough the roof, now trading 50% above the lows from November…and in Australia, the lithium sector was very strong as well. Today, though, Tesla is down by 11% as I am writing this in late afternoon…
I giuess todays strength in metal prices also had to do with it….there was some profit-taking once I had left yesterday, but today, they are all powering ahead again: nickel + 3,3% / copper +2,3% ….palladium not far below recent all time highs…gold a little bit weaker, currently 1550 US$. And equities are shooting the lights out, once again…the virus and Chinese ( very valid ) growth concerns get oushed aside amid the expectation, that we will see big stimulus in China, if we really see a slowdown, and prolonged impact from the virus-outbreak. Later in the afternoon, metals retreated from their highs - probably not helped by a strong US$.
The fact, that infections are pretty mutch concentrated to Heibu Province, gives markets some hope, that authorities will be able to contain it.
Trump has got 49% approval rating - the highest since he took the job.
Oklo - and another round of spectacular results from extension drilling! The two drill holes we spoke about a few days ago came in - and they surely did not disappoint! 30m with 8,5g gold and 13m with 15.8 g are the stuff which gets us excited! They might well have 600-700.000 oz by now, at average grade of say 3g/t - but this is pure speculation. Their very actice drilling program is ongoing, and their first resource estimate will come in Q2 of this year. The stock is getting so much attention, as tehy are in elephant country - and next to a few big mines in the neighbourhood. 103 mill A$ market cap is probably not dirt cheap - 100 mill A$ market cap for no resource as yet - but I think well warranted. I am having a foot in the door he, and you should was well, I think!
Liontown - was not only dragged higher by the general lithium-frenzy today, but also announced excellent drilling results from their main project, Kathleen Valley: Numbers like 13m with 3,1% Li2O / 33m with 2% / 40m with 1,7% / 58m with 1,3% are truly oustanding and easily underpin the “exploration target” of an additional 25-50 mill t ( on top of existing 75 Millt at 1,3% )at 1,2-1,5% LI2O. The next, interim resource estimate will be published in mid-February and gathering from these and other results, should not disappoint!!
Have a nice evening
WS