Good afternoon
party boy Djocovic, this dickhead, was infected with corona virus…what an idiot!!
It gets a bit boring - but equity markets are strong again today! The Nasdaq is now up by 13.5% this year! the S&P is down by just 2,5% in the moment….while European markets are down by about 10-12% on average, Australia down by 11%.
PMI in the US as expected, but in Europe, better than expected and above 50. The most important German economic advisors see a bad recession this year with -6,5% GDP, but a 4.9% increase next year.
Base metals except for zinc are marginally stronger, and gold is having another strong day, currently at 1767 US$/oz…the all time high from 2011 is in sight…and given what is happening around the world, probably a question of time, when we will see it being eclipsed! But in A$, it is not moving higher…still around 2540 A$/oz.
Western Areas - have made what could be a very large nickel/copper discovery in the Gawler Craton in the west of South Australia. The area has been targeted as a an area of potentially large base metals deposits, but had gone quiet ove rthe last 2-3 years. But 200m of intersection with 2-5% sulphides - grades not known as yet - and with an EM anomaly, which indicates, that it will be there much deeper as well, got the market very excited today! The company added about 100 mill A$ in market cap….one hole is no reserve, but it looks VERY promising. Panoramic moving up by 10% today as well - are investors expecting WSA to make a paper bid for them? I have no idea, but certainly possible. PAN are technically in an interesting situation, with the stock trading just above the recent, large capital raising at 7ct….I think we would deserve to be in for som fun here!
Oz Minerals - will expand Carapateena with a 1.25 bill$ block cave. This will not affect earnings of OZL until 2025…but it secures a very long term future of this excellent company into at least the mid-20thirties…probably at costs sub 1$/lb. The company remains Australia´s only, serious copper producer, with nice leverage to gold.I do not own any, but I probably should!
Osino Resources - just written about them yesterday, and they announced a 15 mill Can$ capital raising late yesterday, at 1,10 Can$ + a 1:2 free option, exercisbale within a year at 1,50 ! My wifes cousin is making hayhile the sun shines…I am sure, that he has his previous, very successfull venture Auryx in mind, which developed into an excellenmt gold mine. But the fruits were hanging too high for them then - it would have been really difficult to raise the financing for a small company. So - while this comes as a surprise, it certainly puts Osino on a very sound footing, and gives them ample shots for drilling a 2 mill oz+ deposit ( hopefully ) in Namibia!
Evolution - tehy are having a bit of a quiet time, marketwise! When tehy got included in the MSCI recently, the share price exploded - only to come back to erath, when tehy announced some problems at their smallest mine, Mt.Carlton. I think the current level is fair value for EVN at this stage,a nd tehy will probably move with the gold price. They have indicated, that outside of Mt.carlton, the Quarter will be a good Quarter. But at their largest mine, Cowal, they are currently only treating ore from the stockpile, which has been well flagged - but we have seen numerous example of analysts not listening, to what comapnies tell them. But closer the the 3rd Quarter 2020, things should get a bit more exciting: Cowal reservbe statement ( and first reserve from undergound, which should be large ), drilling results from underground Ernest Henry, and more clarity about what I think will be a bright future for Mungari shoudl be announced. I am also believing, that their first venture outside of Australia, Red lake will come up with many pleasant news. So give them the benfit of the doubt, and be a little patient here. I think you will be rewarded later this year!
Have a nice evening, and enjoy the ride!
WS