Good afternoon
several companies eem to make good progress in developing a vaccine against corona…and the FAANGS are driven equity markets higher…Tesla racing like mad….new all time high today…and Microsoft, Amazon, Netflix, Apple and now also Facebook are charging to new highs…amazing! Not to mention paypal, which also is a very large company these days, with more than 200 bill US$ market cap. They are up by about 50% from pre-corona levels…
Payrolls in the US are rising much stronger than the market had been hoping for. Let´s hope, that the massive rise of corona infections in the States does not choke off this early promise!
But new infections in the US and Brazil are surging at an alarming speed!
BHP is scaling down operations at their smallest copper mine in Chile, which produces about 70.000t of copper p.a.. This is no problem - but if it´s a precursor of things to happen in Chile, the impact could be massive!
Base metals are a liitle stronger today across the board, while the gold market came under some pressure following the labor market figures, only to rebound strongly from 1760 US$ to the current 1778 US$/oz. Subsequently, the GDXJ broke above 50 for the first time since 2016 ( when gold was trading at 1370 US$ !!!!) . It might well run into some resistance here.
Tietto - yet announced some more drilling results from deeper down - 3m with 17 g is certainly a very nice intersection! Tietto might have 3 mill ounces shortly,,, and is trading at 190 mill A$ market cap. DEG might have 4 mill oz in Western Australia , for a market cap of of 1.15 bill A$! Where is the value? Easy answer! Tietto continues to do all the right stuff ( and that´s mainly to find more gold! )
Middle Island - that also applies to these guys. Vetran Rick Yeates has been very stubborn in trying to bring his various ore bodies into production. With very little money, frugal management and tight drilling budgets he is getting close to establishing enough resources, to refurbish his existing plant in Western Australia. MDI is the darling of the punters - trading as a penny-stock, on relatively large volume. His orebodies/plant is only 150 km from Horizon Gold´s asset Gum Creek, and I know, that Rick would love to put these assets together. There are several, slightly stranded ore bodies in the area, which he has been trying to amalgate for some time. But his own exploration in teh emantime has delivered, culminating in some bonanza-grade drill intersections over the last few days. Good on him - it´s good to see frugality, sound knowledge and integrity coming together and having success! Well worth holding MDI, I think, despite the recent run. Some good people are backing him..my own fund has been there for many years, and is holding a sizeable positions in the options.
Breaker - another old hand, Tom Sanders, just does not give up to advance his asset Borborema! A strong intersection of 4m with 21,8g today added to a recent string of good drilling results, outside of the current resource! Unfortunately, the market still ahs it´s doubts, whetehr the resource is “hanging together”, and whether BRB will be able to deliver a strong, mineable resource. Good results like the recent ones certainly are helping his case and are starting to build up confidence. I am not a geologist - so very hard really to judge for me. But it´s worth holding on to the shares, and probably one should have a foot in the door here. If perception changes, the stock could quickly go quite a bit higher.
Genex - I think there a few stale bulls in Genex! It ahs taken much longer to bring everything together! It´s just ahrd for a small company to develope a 750 mill A$ hydro-power station right in the bush of Queensland. But the boys have really done a great job, and have persevered to manage to hold all the balls in the air: NAIF has committed to provide up to 610 mill A$ in financing for the project, at very favourable terms. Anotehr government body, ARENA, is hoped for to provide a 50 mill$ grant. The Queensland government is helping with a transmission line, and EnergyAustralia has signed an offtake-agreement for 10 years + options. So what is left??? Well 90-100 mill $ in equity! Reportedly, quite a few potential buyers have shown strong interest, and a final decision on a competitive basis es expected within a month. So everything should come together over the next say 8 weeks: The final commitment from ARENA for the 50 mill A$, as well as the fine print of the Queensland involvement in the transmission line. This is exactly the sort of project which is needed at a time of roaring supply of wind- and solar energy! And provicial as well as federal government are obviously seeing this as well. Genex is in the final run for a project go ahead ….and that should bring the valuation of the company into the mid-thirties from todays 20ct. I think GNX are a nice way to support a good cause, and make 50% profit on the way - potentially more! And potentially within this Quarter!
Strike - this Quarter will also be an important one for Strike Energy! Appraisal drilling of what has been one of the most exciting gas finds in Australia for many many years, should enhance the valuation and give more substance/safety to resource estimates. The gas market in Western Australia has also come into motion, driven by teh decision of Chevron to sell it´s stake in the North West Shelf JV, which potentially makes it easier for the NWS-JV to process thrid-party-gas ( like the stuff from STX or BPT ). This could well create a lot of demand for gas in WA….Over the enxt few month, we could see another strong share price move in STX…
Have a nice evening!
WS
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