Good afternoon
and here we go again! Equities up! Google with stunning numbers is dragging markets higher! Also, the fact that Gilead´s drug does not seem to be useless, is used as an excuse to drive equities higher! NASDAQ ist just 1% below the level from 31.12.2019!!
And gold seems to stay above 1700 US$ - but the strong A$ is not helping the A$ gold, but it´s holding above 2600 A$/oz…
Base metals are also a little stronger, and oil is jumping today
West African - announced a stunning deal today! Aquired B2Gold´s 1.1 mill oz resource in just 14km distance, grading 2,1 g - but at this stage, it´s only inferred. WAF paid 10 mill US upfront, 10 Mill once feasibility study in finished or in 2 years, and 25 mill from production royalties. Even if only half of this resource will convert to reserves, this transaction will increase mine life to something like 10 years, and by replacing sub 1,5g gram material with say 2g, it will also increase yearly production! And there is a lot of exploration potential!
It shows you the worth of an existing operation, when you can add value of buying resources nearby!! The stock has at least 1$ written all over it ! One experienced mining guy in Australia commented today: They are probably on their way to a 1 billA$ company!
Metro Mining - Quarterly out today…production only started 2.4. on one shift, and a week later, on double shift. Operation is going well and according to plan. But the company spends a lot of time outlining the risks of the bauxite market…alumina has been weak, hence the refineries are trying to put pressure on the bauxite producers. Freight rates are well down, but Guinea-producers, having dramatically more distance, are profiting more than MMI from it. Let´s wait, how the bauxite market will pan out over the next few month…The company probably saves 2$ per t in freight, and another 2-3 $/t they receive more due to the A$ being weaker than last year. But that is probably not enough in the moment at least to make up for bauxite prices, which are probably in the mid-forties rather than 51-52 as last year. So while operationally all is going very well, prices received are not so good! Still, for everybody having the view that that world will come back to normal over the enxt 12-18 month, this is a cheap stock! I am holding my large position - tremendous medium term value here!
Oklo - became a victim of their recent success! Strong drilling results, extending the SK1 North resource further at depth, with good intersections - but not as spectacular as the recent numbers. Assays from 18 drill holes are still oustanding,a nd drilling is continuing. The exploration program has been extended, due to the recent success, and hence the first resource estimate will take another 3 month or so. The wet season is starting in July, and the company wants to continue drilling until then.
Panoramic - published a bad Quarterly, but it´s pretty meaningless. It looks liek tehy have started mining from Savannah North stopes only very late in the Quarter. Infill- and grade control drilling results have been pretty good, and there is no reason to believe, that the Savannah North ore body is not performing as planned. That´s the main takewaway for me…We will have to wait for the planned announcement re financial restructuring, and operational plan going forward, which is planned for before 5th of May - so late next week.
Have a nice evening
WS
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