Good afternoon
Corona cases are still racing ahead in the Americas…not good…California and Florida with rising numbers! And Germany is fighting a big outbreak at a slaughterhouse in Paderborn, which infcted more than 1300 workers.
The financial market watchdog in Germany under scrutiny of having missed to find out what´s happening at Wirecard! I wished these guys would evaluate the big boys, and not waste their time with small boys like my firm! But 1.9 bill Eur gone missing can happen , can it????
500 “party-people” in Stuttgart rioting in the Streets - for no apparent reason and without a specific cause. Inequality issues coming to mind - or are tehy just under some emotional prssure because of corona? I fear it´s anger of people being left behind. And to some degree I can even understand them. If some super-rich people like Mr.Thiele are trying to blackmail the German taxpayer to put more money ( or less voting rights in return for a 9 bill bailout! ), just to add afew hundred mill Euro´s to their 9 bill Euros net worth, I could become very angry! Irresonsible ultra-capitalists like him are not good for what we call in Germany the social peace!
European equities are seeing some profit-taking - finally giving in to earnings-pressure on most companies? But the US are slightly firmer, once again - especially NASDAQ.
Not much happening in base metals today - but gold is trading around 1750 US$ all day. Inflows in Gold ETF´s have increased quite markledly last week, following two quieter weeks previously. I guess they have mainly been responsible for pushing gold out of it´s recent trading range. And we are seeing the same trading pattern again today: Some profit-taking during early European hours, but strong interest , once the US wakes up…and by now, it´s trading at 1757 US$!
There has been some concern about virus outbreaks in Africa - some countries like Tanzania seem to be very complacent ( well, perhaps tehy have no other choice? ).
Ramelius - continue to perform very well operationally - guidance for the current Quarter has been increased to above 80.000oz, from 65-70.000 previously. The company is continuing to build a nice cash position, probably approaching 200 mill A$. Guidance for next financial year is 250.000 oz. I think some of tehse Australian producers have run a bit hard….When I see Ramelius at EV of about 1.5 bill A$ or Bellevue at 700 mill A$, I think valuations are getting up there at an A$ gold price of 2540 A$/oz. When I compare this to West African at an EV of less than 700 Mill A$, I know where the value is! And good value is also with some smaller companies, like Tietto, Apollo Consolidated , Horizon , Dacian and others! Mind you - I am a holder of Bellevue - but I am inclined to take profits.I am also a holder of the other names except for Ramelius, which I have missed unfortunately!
Prairie Mining - has been in volatility interruption all day in Poland today so fra. A newspaper report in Poland speculates about somebody financing PDZ´s litigation against the Polish State, which could cost 10-20 mill A$. The pre-market price seems to be nearly 0,24A$….
Cassini - have received a takeover bid from Oz Minerals, their JV-partner! All other assets except for the JV-stake will be left with Cassini shareholders, and will form the basis of a new company, which will be listed. OZL are paying 15ct in shares + 1ct cash for the reminder. That´s a good eal for Cassini holders, I think, giving them relief from having to find financing for something. which is not viable at current base metal prices, and some years away from production ( probably 3-4 years ). The ex-JV interests are probably worth 3-4 ct at this stage, and include some interesting exploration ground not far away from Chalice´recent Julimar discovery. Shareholders will have the chance to vote about the proposal at an EGM. The board of CZI is supporting the transaction.
Osino Resources - the Canadian company continues to profit from several buy-recommendations. They are certainly not cheap for what they have in Namibia - but many experts can see the potential. If Osino can live up to that, there is certainly much more left in it, and Namibia is one of the ebst countries to be active in in Africa. The weak currency is also helping operating costs, which generally are very low ( Otjikoto for exmple, previously owned by a company run by the current Osino-management, had cash operating costs of below 400 US$/oz last Quarter ). Recent broker research valued them at potentially 2 Can$/share. I declare my interest…as in many other companies I am talking about in this blog !
Have a nice evening
WS
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