Good afternoon
stronger equity markets yet again today…China economic numbers were leading the way : Retail Sales up 0,5% YoY - positive for the first time. Industrial Production +5,6% YoY…government stimulus and loose credit rules are certainly helping. Macquarie believes, that strong, early indicators are pointing to continued, strong metals and minerals demand into 2021….Strong manufacturing numbers for the US, but while positive, lower growth in IP than expected.
Base metals are seeing little change today except for zinc, which is up by 1,7% currently. Gold continues to react to the US$ - early on, strong gold and weak $ - now stronger $ and slightly weaker US$ against Euro.
Gold stocks in Australia seem to have ended their consolidation phase. Stocks have been up strongly over the last two days, and are actually trading at levels, which are pointing to renewed interest - despite of lacklustre inflows into gold ETF´s, which have come down to a trickle .
Strike Energy / Warrego - pre-spud activities are ongoing for West Erregulla3 in the moment, as drilling is expected to start some time this week. This is tsrating to create some interest in the stocks. The drilling is hoped to confirm a 1 trillion cubic feet resource…
West African Resources - made a new closing high today…Finally, the market is waking up and it looks like West Africa as region is starting to be re-priced from levels, which were impacted by the recent coupe in Mali. Quite a few stocks in this space experienced a rebound, as seen in Endeavour ( new all time high yesterday ), Oklo, Tietto, Marvel Gold etc. The prolonged and intense takeover battle for Cardinal also has helped to restore some confidence, even though that is probably over, as directors have finally accepted the Shandong bid for their stock. That should hand back fresh cash back into the hands of several gold funds, giving them some need to re-invest.
Panoramic - like many others, they presented at the RIU Explorer Conference today, and updated on their exploration efforts at- and around Savannah. I think this has put the very substantial upside to PAN´s resource back into perspective…massive turnover of 45 mill shares in PAN, which is still only valued at a market cap of 200 mill A$ vs say Mincor at 400 mill A$!
Have a nice evening
WS
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