Good afternoon
cash is burning a hole in most people´s pocket! Everybody I know is waiting for a big correction - that hurts the funds, and greed is what driving the market! But I don´t want to complain at all, especially, as gold is also running , as funds still move into Gold ETF´s - every day! Nasdaq is currently UP FOR THE YEAR - even only just so!
Base metals are also stronger across the board! And bonds as well - goldilocks wherever you look! Oil is making up for yesterday´s loss and Brent is trading at 31$ again.
European countries are very surely reducing lock-up rules now, and corona-numbers are improving. Let´s hope, that this is not the beginning of a new outbreak!
Interestting is, that the situation in many countries, which are run by populists, is still not that good: US, UK and Brazil are examples!
I do not really make a lot of fuss about economic numbers, as I usually do - they are bad, but they are expected to be so, and they don´t interest anyone!
Risk-on is the story in the moment, and therefor it does not surpeise, that the A$ is just a few cent away from the pre-corona level. Against the US$, the A$ is almost there again!
Is it time to look at left-behind stocks now? Well, why we are all waiting for the big correction, some of them probably are. One of them is:
Metro Mining - excellent production report for April out today. Remember, they only start mining after he wet season - this time on the 2nd of April - and had their first shipment on the 12th of April. They mined 415.000t against Quarterly guidance of 900-1.100.000t, and shipped 245.000t vs Quarterly guidance of 900-1.100.000t. The latter appears low - but in the second half of last year, they shipped 450-500t/month - so again, April has been very strong. Bot numbers indicate, that guidance for the Quarter should be an easy task! The main worry for investors in Metro is the bauxite market, and lower prices than last year. But the way it looks, a substantial part of lower pricing should be made up for by lower freight charges, a slightly lower A$, and strong production. So I think this very well run company is worth buying at current levels….the bauxite market is not as bad as the share price might make you think!!
Tietto - again, some very nice intersections today! 5m with 14g gold, and 8m with 3,1g gold extend the resource at depth - 100m below previous, strong intersections. These results are from the AG Deposit, which currently has 19 Mt at 2,2g already….a lot of drilling results are pending, and the drill program is continuing with 4 drill rigs. No impact at all so far from corona.Once their 50.000m program is finished, we are expecting the next resource upgrade in August/September. at 122 mill$ market cap and well cashed up, the stock is still only modestly priced. Once the new resource is out, I think we might well see 50ct for Tietto.
Apollo Consolidated - have sold their 20% equity in Ivory Coast assets for 7 mill A$, subject to a few formalities. AOP have 1 Mill oz in resources , of which 550.000oz are indicated - at 1,5g and using a 0,5g cut-off / about 22 mill A$ in cash , and a market cap of 64 Mill A$. AOP have substantial upside from their Western Australian asset, right in the heartland of Australian gold mining and in trucking distance to several mines. The above mentioned resource was their maiden resource only! The only thing I do not like about Apollo is the fact, that they are a bit slow! With 22 mill cash, I would want them to employ people and get out there drilling with 2-3 rigs! But nevertheless - I think there is considerable upside for Apollo.
Have a nice evening
WS
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