Good afternoon
The FED´s Powell today has been very cautious on the economy - saying that liquidity problems might well become solvency problems for many businesses. He believes, that further help from the FED could become necessary. The market fell on those comments, European equities are even weaker, catching up with the weak close in N.Y. yesterday.
Metal are trading lower as well, about 1% down on average, except for gold, which is looking solid at 1715 US$ currently, and a stable 2645 A$/oz.
German car sales have been very weak, obviously - but EV sales in Germany are reported to double the market share, as well as sales numbers, to 7%. Subsidies since mid-February are helping here.
Prairie Mining - JSW have repoted, that they have terminated talks with the company re aquiring it´s Polish coal mines/resources. Well, according to PDZ, there had not been any communication for many month! Funny enough, the stock is basically unchanged in Poland, and that´s where the turnover is usually happening! In it´s last update, Prairie was saying, that the company is finalising arrangements for international arbitration against Poland. Strange story…I am not sure what to do here.
Osino Resources - have started drilling again at their Twin Hills Project in Namibia, which could bring some excitement back into the stock.. Only one drill rig drilling in the moment, but more to to arrive soon to eventually three rigs. The company has a lot of drilling left to do, and is well cashed up to do so. I ahve seen some back-on-he envelope calculations by a geologist, who thinks that the resource will be easily above 1 mill ounces, and potentially substantially larger. Broker Stiiefel recently shared this view, and valued the stock at 1,60 Can$ or so. A bit adventurous at this point, but well possible down the track. Unfortunately, the market loves grades - and that is not the story here. I would rather expect a resource similar to the neighbouring Navachab Mine, which has been producing for a long time ( and will continue to do so for a long time ) - very profitably at low grades. Mining in Namibia is very profitable, partially due to the weak currency, as exhibited by B2Gold´s Auryx Mine in the country. I think it´s very worthwhile to revisite Osino and have another look - there should be plentiful news this year from the active drilling program. Once again, I declare my personal interest.
Bellevue Gold - appointed two new independant directors, both female. I do not know them, but their respective CV´s look good…
Strike - respected broker Euroz have initiated research on Strike. They value the stock at 25ct on a risked basis, which would rise to 40ct, if the appraisal drilling confirms their resource. It does not take into account success on other prospects. The broker values the Copper Eromanga assets at zero. That´s probably conservativ - but even if they valued it at 20 mill$, it would not make a big difference anyway. They have used a Western Australian gas price of 4,50 A$, which tehy have called conservative. I tend to agree here - long term contracts are probably around 4.50-5$ currently. Overall a very positive report, writen by a respected analyst. Most probably, the report has been the reason for today´s share price rise to 16ct. I continue to hold a large position in Strike.
Have a nice evening
WS
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