Good afternoon
iron ore continues to rocket , as Brazil´s presidents still neglects corona. Related, possible supply issues are a major worry for steel producers, while Australia has just 10 new cases versus 15.000 in Brazil! I think it will be a question of time, when we will have calls for a new mining-super tax for iron ore producers. The three big boys are generating approx 40 bill A$ in EBITDA at current prices!! An additional 5/$ in the form of royalties or other ways, would increase government earnings by approx 3 bill A$, while it would leave these companies extremely profitable!! But the market would obviously not like this at all - so a word on caution, as FMG for example are trading at a new all time high today. The net worth of Andrew Forerst & Family is now about 15 bill A$ - not a bad job in just 15 years! Who dares, wins!
Gold continues to power ahead - currnetly at 1761 US$ or 2733 A$ - driven by large ETF-inflows. A good finish on Thursday/Friday drove a 1.5 mill oz net inflow last week , worth about 2.5 bill US$. Gold equities definitely broke out today.
The oil price is up by 3$ to 35,50 US$ for Brent! That´s a the highest since early March, when it broke down from 50$.
Chalice - the AFR is writing today, that Robert Friedland, the famous Canadian mine developer, put 15 mill A$ into the stock in the last placement. All rumour for now - but if true, it would create a large North American following, I think! But unless he bought more, we might not know for a while, as 15 Mill A$ would be just under 5%!
During our afternoon, Moderna in the US reported sime success in developing a vaccine, which is depressing the gold price ( 1729 US$ ) , but has put a rocket under share prices otherwise! The same for base metals - they are up by 3-4% today. Gold stocks are holding unchanged from the US close on Friday.
Platinum/Palladium are very strong today, as the economy in China seems to regain some strength, and Impala has to close a mine for 19 corona cases - most probably, very temporary.
Not much micro news out today!
Have a nice evening
WS
WS
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