Good afternoon
Europe was a bit weaker from the start today, and once the US labor market figures were worse than expected, the downward move intensified. But as the day progresses, the US is starting to recover from a weak opening and the DOW is now unchanged!
Trump continues to slam China - well it´s election year, and with 25 mill unemployed in the States, it could be a desaster for him! So somebody has to be blamed for more than 1,3 mill corona cases in the US ( N.Y. alone has 340.000!! ) …
Gold ETF´s added another big number to their holdings, up by 360.000 to 97.7 mill…they are up by 600.000 so far this week, which is a litle less than recently - but the week obviously is not finished. I am watching these numbers very carefully, as the ETF´s are the single most important source of demand in the moment.
Gold is having another strong day at currently 1730 US$ ( which would be a new 8-year high, if we close here - it´s also strong in A$ at 2694 A$/oz
The IEA came out with a pretty positive outlook for oil, expecting non-OPEC production to fall off a cliff this year, and sees demand recovring. WEll - Munich-traffic I can say is back to the good old traffic jam at rush hour! We must be within 2-3-4% of pre-corona rafiic numbers.
The price of iron ore is holding up against all analyst views - it´s even making new, recent highs just above 90$/t. The Aussies are making it big time! Not unimportant at a time, when the economy is on it´s knees! It won´t be long, and people will be asking for higher royalties! I have to say, that I might even understand that!? It´s easier to increase taxes on 3 companies with extraordinary profits, than on say 500.000 wealthy Australians!
Middle Island - they have been able to raise 4 mill A$ at 1,1 ct and looking at the share price of 1,3 ct, even quite easily. They are trying to consolidate starnded resources in trucking distance, which makes sense, and also to establish large enough resources them selves to validate 10-13 mill$ capex for the refurbishment of their old plant. They have tried for years - their action makes sense to em - but it will probably continue to be too smal for serious players to invest in!
Tietto - that could be a little different, with an existent resource of 2,2 mill oz already, and more to come as proved by recent drilling. They reported some outstanding metallurgical test results today. They showed, that with limited crushing, the recoveries were between 54- and 88% from Gravity Recovery, and around 97% after leaching. These results augur for very low costs to process the ore - little capex , little energy use and high throughput. These type of results are equally important as good grades! The best news is, that Tietto seems to have both of it! Beside of ongoing drilling results, the next really important news will be the next resource estimate in September.
Chalice - finished to raise 30 mill$ at 1,05$ + chairman selling 10 mill of his 47 mill shares, and ended up with demand of 75 mill A$, which is stunning result for an Australian exploration company! They will no doubt spend big time on exploration for the enxt 12 month at least to find out, just how good their ground in Western Australia and in Victora is!
Gascyone - more hope for holders…anothe good month with 6500 Oz produced, 60% of which were coming from the Gilbey pit, which will increase over coming month and should increase production a little more. The next reserve estimate is due some time this Quarter, as well as a new Life-of_mine plan, which will form the basis of the equity raising.
Have a nice evening
WS
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