Good afternoon
new all time high for gold!!
The bad news is, that I really believe, that it has not only to do with the things we have been talking about for years - debt, money-printing, low interest rates etc - but also with something like a trust-crisis in the US, and the US government! If correct, this is potentially bad news for the entire system - and I sincerely hope, that this crisis - if it exists - does not go any further. In any case - a 9% fall against the Euro in a little more than 2 month is remarkable!
Gold ETF´s saw a very large inflow last week of about 3,4 bill US$. Still, in the overall scheme of things , this is still not a lot of money! If we had this inflow every week, it would add to roughly 170 bill US$ - 12% or so of the market cap of Microsoft, if we saw this kind of inflow for an entire year!
Industrial Profits in China very strong - Business Confidence in Germany very strong. But in the days of corona, these things can obviously change very quickly. Durable Goods orders in the States pretty strong as well.
The virus is coming back in amyn countries - that´s certainly a worry. This includes countries, which have previously managed the situation rather well - but also many others like in Latin America, the US or South Africa, where the situation looks continously very bad…
Base metals a little stronger - profiting to some degree from the weak US$. Nickel is the strongest again, still being pushed on the back of Musk´s recent comments.
VW started to take orders for it´s new battery car, ID-3 - and the numbers are booming!
Lefroy - the company has a large exploration area in the North-West of Goldfields St Ives Gold Mine, which has produced 10 mill oz in the past. Goldfields have a large JV with LEX, under which GFI has to spend up to 25 Mill A$ in exploration. The first 4 Mill A$ have been spent, mainly on ground work - now GFI have to spend another 6 Mill this financial year, to earn 51%. GFI believe, that they have found rock formations very similar to the ones at neighbouring St.Yvey, and have now started an 8000 m drilling program. The potential here is obviously significant. Lefroy already have a gold resource established on it´s 100% owned ground, which could easily be trucked to several existing plants in the area. Lefory has been pretty quiet for a long time, but suddenly the share price awakend today!
Oklo - make hay, while the sun shines! OKU raised 10 Mill A$ at 32ct, to bring it´s cash position to 22 mill A$. OKU will accelerate it´s drilling of the West Mali assets. First resource estimate should come over the enxt 2-3 month - probably 600-700.000 oz. The stock is not dirt cheap, but the resources are potentially of relatively high grade, which would get a premium rating in the market. OKU I think will have several options - I think the resource will be large enough to feed a stand-alone mill, but it could also be sold to the neighbours!