Good afternoon
Stocks are finally weaker today on US-China tensions…base metals slightly higher. the US$ is pretty weak - don´t really know why this is the case - 1.1133 against the Euro. This is also helping gold - 1226 US$ currently.
had an interesting chat today to a friend, who has a senior job at a worldwide software company…he currently has 1000 projects going on worldwide - 982 of those clients have stated, that they have no problem at all to continue these projects remotely. He has been running that divison without any problems remotely, from his holiday home in Bavaria, since corona started. ALL of his employees are currently in home office, from 15th of June, 30% will go to work again…One thing is for sure: you would not want to own any commercial property these days!
I had completely missed, that Evolution and Northern Star were included in the MSCI today. Apparently, 25% of Evolution and probably the same in NST are held by passive funds now! I don´t like that. Massive turnover in both stocks….also dragging other gold stocks higher, on good turnover.
Apollo Consolidated - announced results from extensional drilling: 22m at 3,44g gold! The same hole also intersected 8m at 2,84g. This hole is 120m below existing results, and should increase the resource. Apollo continues to drill, but I hope, that they will soon start a more serious program! Company has more than 21 mill A$ in cash, and a royalty, which is worth 15 mill A$ at least - valuing their 1 mill oz result at just approx 40 mill A$. This resource also has substantial upside, is close to Saracen´s Carusoe Dam Mine - but is also approaching a size, which makes stand-alone development highly probable. The project is located 145km east of Kalgoorlie.
Liontown - Chairman Tim Goyder bought additional 2.4 mill shares at 12,5ct!
West African - had their AGM today. Company is producing positive cash already - 7,2 mill A$ in April, despite still producing from open pit only, and 1.3g dirt. Sanbrado will produce higher grade ore from open pit in the 3rd Quarter, and will also produce much higher grade underground ore , starting 3rd Quarter as well. Infill drilling of the soon-to-produce stopes include stunning 13.5m at 133g / 13m at 64g / 17.5m at 26.8g / 7m at 39.5g / 12m at 20 g !!!!!! And extensial underground drilling will start in June again! So news-flow from exploration should be with us from say July on. The underground drilling has a high chance of increasing the very high grade resource at depth, and production results incl underground ore will be exceptional! In April, the plant was running at a yearly rate of 2.8 millt - above design capacity! I continue to believe, that WAF are very cheap - the only negative: It´s a one-mine stock in Burkina! Management are adressing this issue, and they are a declared aquirer of additional projects. I would love them to buy one-ore two additional, close to production assets, to reduce the reliance on Burkina, even as it will be impossible to aquire something of the quality of Sanbrado, which is shaping up to be a 10-year producer of above 200.000 p.a. at below 600 US$ AISC! This company will be capped at 1 bill A$ at some stage in the next 12 month I think, vs 700 mill A$ now.
This report is being finished at lunch time already - will be away for 10 days !
have a nice weekend!
WS
WS
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