Good afternoon
not much happening in equity markets today - they are pretty stable. Same in metals -mixed but little action - except for nickel…it´s up about 1% and about to make a new , recent closing high.
The ECB will continue to print money, as they see Europe in a recession. Probably right, given the current lockdown!
Sheffield - Quarterly out, but not all that much news, as expected! The JV with the Chinese has been signed, and will be fully consumated shortly. The bankable feasibility is ongoing, and should be finished next month or so. Final Investment Decision is expected this half. Investors are a little bit uncertain in the moment - given the announced changes to the feasibility study - on what that really means for capex, operating costs and expected returns. If we assume, that the above will not dramatically change - and that´s what I expect - the stock should be worth a lot more going into production! Next bit of news will be the BFS-announcement, and relatively shortly thereafter, the new financing ( which could be a lot cheaper via Chinese banks or an increased participation of NAIF ? ) , followed by FID in a few month time. Production could/should start before the end of 2022 - so not that long to go to cristallize full profit here! I continue to hold a large position.
Marvel Gold - as you know, this is the old Graphex Mining. When the company was restructured about 6 month ago, nobody put much value on it´s Tanzanian graphite asset any more! But tiems have changed dramatically since then, and the battery-metals sector is on fire big time. The worth of Black Rock Mining, which has many similarities, has trippled over the last few month, and the company is now capped at 117 mill A$. I would not be surprised, if Marvel could actually realise much more than the 8 mill $, which it has in debt with the original private equity fund. Marcel only has a market cap of about 25 mill A$ - so an extra 10 mill A$ would make a significant difference to it´s valuation. With about 1 mill oz in resources, the stocks is probably on the cheap side, given it´s excellent exploration potential - and the value of Graphite is completely disregarded in the moment.
Bellevue Gold - also came out with the Quarterly today. Not that much news in it, except for that they have announced renowned financial advisor Orimet as debt-advisor. Another step forward to go it alone, if they have to. But for just over 1 mill oz in indicated resources ( even though at 11,4 g !! ), I maintain, that BGL is not dirt cheap .
Perseus - also out with it´s Quarterly. Not as strong as the Sept-Quarter, but still very respectable, producing 68.600 oz at 1036 US$ AISC. Yaoure poured first gold in December - fantastic achievement in times of Covid! - and will contribute to the current half guidance of 175-190.000 oz of gold at AISC of between 950-and 1.150 US$. That is very respectable indeed! PRU has 3 mines in two countries running run, which will bring them on course to above 500.000 oz p.a., once Yaoure is firing! They remain one of the cheaper stocks in a sector, which still feels a bit tired after all the excitement last year!
Have a nice evening
WS