Good afternoon
following on from a very strong day yesterday, equities are weaker. There is no apparent reason today…markets seem to be without strong conviction. The US fiscal package does not make much progress, and investors are trying to get a feel for the upcoming US-election. I am not that sure, where a Biden-win would take us…it could be negative for markets - as much as I want Trump to leave the White House!
Base metals are keeping their head above water so far - the US$ is a bit weaker, and that´s also helping gold, which can add a few $ on yesterday´s nice performance.
Gascoyne - what a saga…but one has to be happy as a shareholder, that the administrator behaved very well, and saved the company for the shareholders. All last minute legal proceedings have been finished as at today, in favour of Gascoyne. The rights issue, 2:1 at 2.5ct, had been extended to the 7th of October - so if you are a shareholder, you need to be quick to subscribe, if you have not already done so. The operational performance of GCY has been very stable this year, and teh shares should definitely be worth quite a bit more than 2.5ct….Listing of the company is expected in late October!
Horizon Gold - hard to believe, but the company is finally drilling!! Once they got moving and had raised the cash, it started to be difficult to find suitable drill rigs … Initially, 38 holes for 460 m at existing orebodies Swan and Swift. This drilling shoiuld deliver some strong results - everything else would really surpise me. The comnpany has also stated, that a more expansive drilling program will start by about year end. As you know, and corporate governance aside, I real like the fundamentals here, and I believe, that the forthcoming exploration results will validate this view. The stock could/should be worth a lot more than 50ct!
Genex - to be honest, I wanted to get a bit more clarity on their announcement last week, and then completely forgot to write it up! The news was NOT good..the company had expected to finalise all agreements before the 30th of September, but has failed to do so! The missing agreement is with the Queensland government, which surprises me. Queensland will have elections in a bout 4 weeks time, and I had expected ( as Genex did ), that the good news about this project, would have been made prior to the elections. But it did not happen! As I understand, there is still discussion about the maintenance of the new transmission line ( the government reconfirmed it´s commitment to take up 132 millA$ of the expected expenditure - but there might hasve been somne disagrrement about the percentage of maintenance costs to be carried by Genex ( at least that is what I believe has happened ). The company is also in extremely advanced discussion to sell up to 50% of the project, to enable full financing of the hydro plant to be achieved. Again - I believe, that the incoming party wants a complete and signed agreement with Queensland, before they sign off! And the worst news is: As elections are coming up, we most probably will not have a decision very shortly - realisistically, I guess by Christmas.Whoever wins the election,will support this project, as it is so obviously positive for electricity users and Queensland! So it´s all the same as it was before - but a little bit more uncertainty has been added to the story! Still - as always, hard to get stopped just before the finishing line - and it happened twice to GNX - but the ongoing support from the key-financier, which extended it´s offer by 4 month, should be very assuring!
Have a nice evening!
WS
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