Good afternoon
are investors lossing faith in the US??? Since we hit the worst in equity markets in late March, the US$ has fallen 110% against the Euro now, and continues falling. Trump´s ridicilous virus-management is also having an impact on the US-economy - PMI´s in Europe have been much stronger than in the US today, and there are also indications for prices rising in the US - especially in the services sector. Having said this, New Home Sales have been strong today - but the sector is reportedly profiting from government help.
I am sure the above is also helping gold, which is currently trading at 1903 US$ - it has also been quite strong over the last few days in Aussie, where it´s trading at 2681 A$ - about 120 $ below the all time high reached earlier this year.
Equity markets in Europe have been relatively weak today, but at least so far, are down just by about 0,5% in the US.
Metals recovered somewhat from a weak opening in the morning - copper is still down by 1,6%, but nickel actually is green now!
Apollo Consolidated - they still own a 1,2% NSR royalty in the Seguela Project in Ivory Coast, which is worth 15 mill A$ and perhaps 20 Mill A$. And perhaps more! Roxgold, the owner of Seguela, announced some excellent infill- as well as exploration drilling results from the project. Currently their EIS-study is targeting production of 800.000 oz over eight years ( 140.000 on average for first three years ). The management stated, that tehy are confident of finishing the feasibility study early in 2021, for a “larger and more robust project”. So I think the value of AOP´s royalty can only go up - and is going up with the gold price anyway!
Dacian - as you will know, the company only has a 3 year mine life proven. DCN also disappointed recently, by cutting the guidance by 10.000 ounces this year. Today, the commpany came with an important announcement in my opinion: Strong exploration results from underground, and also from a nearby open pit target. Every additional year of mine life will do wonders for this company, increasing valuations by roughly 30%. DCN have earmarked 15 mill A$ for brownfield exploration this year - I would be very surprised, if that would not change the current mine life! This is even more so important, as DCN are highly hedeged in the short term, which is a legacy from nearly going under a few month ago, under a heavy debt burden. This situation is in hand now, following the large and heavily discounted rights issue recently. The Quarterly has not been published as yet, but should be interesting reading. DCN could be an excellent opportunity. More following their Quarterly.
Have a nice weekend!
WS