Good afternoon
Equities are slightly weaker today - feeling tired after a big run! Trust in Trump also seems to be waining…somebody who wishes Gislain Maxwell all the best cannot be taken seriously? new clash with China does not help…Certainly not metals, which are weak today.
Gold is very strong - silver even stronger - but gold stocks in Australia are showing signs of fatigue as well…the weak US$ is not helping A$ gold price!
Gold ETf´s with anotehr very strong inflow yesterday…and gold stocks as measured by the GDXJ are up another 2% today so far.
Australia continues to have relatively large numbers of infections, at least in Victoria, and in comparison to past, low numbers. Latin American - and US numbers still booming, as they are in South Africa.
Oz Minerals - excellent Quarter from them! The by-product gold is helping their cost performance as well! Promeinent Hill did well on copper production, and Carapateena is ramping up faster than expected. The company is back in net cash position. OZL have upgraded their guidance for this year by 5% for copper, and 8% for gold - obviously, the latter is very positive! ASIC-guidance has been reduced to 0,7-0,8 US$/lb, from 1,15-1,30 US$/lb. At about 5x EV/EBITDA, the stock remains on the cheap side, even as it´s trading at record highs. OZL remain Australia´s premier copper producer - a very good company! Unfortunately, I do not own any!
Resolute - produced 107.000oz at 1.033 US$/oz AISC…Syama Sulphide, the most important asset, continued to ramp up, even though producing still a bit less than some expectations. Syama Oxide has continued to do very well, but the high grade satellite ore body Tabakoroni has now been mined out. Overall, teh company has left guidance unchanged for production of 430.000 oz at 980 US$ AISC. During the last Quarter, the company has still burned some cash ( incl tax payments etc )..that will hopefully change this Quarter. The market is gaining more confidence in the new Syama sulphide, highly automated underground mine. I believe, that the stock should still be trading at a little discount for ramp-up risks. In so far, RSG is probably approaching full value - like many otehrs, unless gold runs further!
The day is finishing with gold at the high of the day at 1864 US$/
have a nice evening
WS