Good afternoon
for a change, markets are concentrating on bad corona news around the world! Equities are weak, metals are taking a breather, while bonds are stronger. But towards the European close, metals as well as equities are looking much better
Gold went for a bit of a rolllercoaster today…from 1856 early in Europe today, to 1837 by early afternoon, and at 5 pm European time back to 1858!
German government is reducing it´s growth forecast for the current year from 4,4% to 3%.
The PMI´s in the States strong - better than expected. Ho,me Sales also better.
Volkswagen is posting a surprising 12.2 bill US$ operating profit for 2020! Not a bad effort during Covid-times!
Genex - the share price has slowly responded to the fact, that the company has given it´s hydro-power project the go-ahead just before Christmas - even before financial close has been reached. This was certainly a huge tick of confidence to get all remaining pieces of this endless puzzle into place! Financial close is expected for February - I would hope, that this can be achieved over the next fortnight or so.Early works have already begun! The stock should move higher, once all this has been announced!
Lynas - will be building a rare earth separation plant in Texas, jointly with the Defense Department, and fed with concentrate form it´s Australian resource. The stock jumped by 700 mill A$ or so in market cap - not bad for a 60 Mill US$ development, which is 50% owned! The market in these battery-related stocks is certainly mad these days - even though Lynas continues to be one of the real players in the field! Excellent management, and a “rare” company - while rare earth prices are continuing to be on the run.
Foran - announced the first resource estimate for it´s Bigstone Deposit, adjacent to their existing resource. Approx 2 mill t indicated resources , and 1.9 millt of inferred resources at 2.1-2.2% copper are representing a 20% increase in indicated. An excellent start - but more to come here from exploration drilling during the summer. I think tehy will end up finding more of these add-on deposits, and will end up with more than 20 millt in indicated, I think - and in canada, close to a very hungry smelter. The recent capital raising does give them enough fire power for a very active 2021!!! I continue to hold a large psoition!
Dacian - after producing 600.000oz at 1356 A$ AISC in the first half, their full-year guidance of 110-120.000 oz at 1400-1500 A$ AISC looks very conservative, especially with regards to costs. The net cash position of 14.5 mill A$ is a 15 mill A$ improvement from the end of September! The hedged position of 55.000oz at only 2.140 A$ is also starting to be a thing of the past….The merger with NTM Gold should be completed by mid-march, giving the company a much needed, longer mine life! I think Leigh Junk is slowly, but surely turning this thing around!
have a nice weekend!
WS