Good afternoon
a little bit of profittaking today in equity markets …at least for now.
Gold is doing it a little tougher as well - fighting with 1700 US$…base metals barely changed…
Not much macro-news today…but a lot of anecdotal evidence, that the re-opening of economies might take longer then expected. Retailers report about very sluggish turnover so far - and I guess, that e-commerce is still profiting from the recent lockdown!
Corporate ectivity in the gold space is waking up again: In Canada, SSR Mining is bidding paper for Alacer, and Gran Colombia want to merge with Guyana Gold and Gold X.
Chalice - reported next drilling result today, which might have been a touch disappointing for some speculators: 137m with 0,57% Pd/ 0,14g PT/0,14% Ni/0,1% Cu from 58 m and very similar results from 201 m; also another hole , where they have same grades from 29m over 113 m. All zones remain wide open, and all RC holes drilled so far have intersected mineralisation. I think it´s fair to assume, that tehy have a large resource here - but I guess the speculative market would have liked to see some higher grades. We should have in mind, that it´s still very early days for the geologists to understand, what we have here. Intresting, that the discovery hole has now also been assayed for the other PGM´s outside of palladium and platinum. 0,09% Rhodium have been noticable - Rh is trading at 7000 US$ so just a little extra does add some value.
The company was suspended late in the day for a capital raicing! This comes a bit of a surprise - there must have been strong institutional interest in Chalice for them to fill their coffers! More news on this, once it´s announced!
Liontown - announced the new resource for their great Kathleen Valley lithium project today: 156 Mt at 1,4% Li02 are certainly outstanding! that´s up from 139 Mt at 1,3% previously. And they have not closed off the resource, either! Nobody wants this stuff in the moment, though, but I am sure, that this will change in 2021 or 2022, once the uptake from EV´s has ( hopefully ) taken off.
Solgold - raised a remarkable up to 150 mill from Franco-Nevado via a royalty! Remarkable, that they were able to do that at such an early stage of the project….
Evolution - made a new all-time high today, closing at 5,51 A$. At the current gold price, EVN - like all the other sizeable producers - are not that cheap anymore. But in relative terms, the valuation is still not demanding! The underlying interest in gold stocks from institutions is still rising - and EVN is certainly one of the preffered vehicles to invest in.
Apollo Consolidated - I have been talking about the stock for a while, based mainly on the success of their Australian project Rebecca, with just over 1 mill oz as a maiden resource. I think this project still has considerable upside! What I had not realized, though, was the potential value of the 1,2% royalty they hold over Roxgolds ( listed in Canada ) Seguela project in the Ivory Coast. Roxgold back in April announced a very favourable outcome of their PEA, which is calling for 840.000 oz gold being produced here, of which 143.000 oz on average in the first three years. The royalty , based on 840.000 oz at 1700 US$ and current exchange rate, is worth about 31 mill A$ ( undiscounted ). The exploration upside from Seguela still appears to be substantial, and hence, today´s value of the royalty should approach 20 mill A$! That a lot of value for a company, which is only capped at 70 mill A$, of which 21-22 mill A$ are cash!
WS
Schröder Equities GmbH
Seitzstr.7a
80538 München
Tel. +49-89-4613440-0
Fax +49-89-4613440-10
email: wschroeder@schroeder-equities.com
website: www.schroeder-equities.com
eingetragen im HR München, HRB 166985
Geschäftsführer: Wilhelm Schröder
The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by