Good afternoon
equities take a bit of a break today…resources stocks still looking strong, though, at this stage. Gold is very volatile: touched a low of 1790 early afternoon, recovered to 1814 US$ - now back to 1803 US$. Base metals are little changed - but bonds are having another pretty horrible day! Inflation fears??
Plat and Pall are holding at very high levels.
Oil is holding at around 63 US$ for Brent…
Good to see, that the relatively new boss of BHP is still very positive on commodity markets…namely copper and nickel! And he is putting his money where his mouth is, declaring a mach larger tha expected div of 5 bill$ for the first half!!! The net result was 5% below expectations, but EBITDA and free cash generation were in line. Glencore also with strong numbers!
Large electricity blackouts in Texas are cerating havoc in the country at a time, when they have temperatures as low as minus 35 degrees! 2 mill barrels of daily oil production are down plus a lot of gas…
Marvel Gold - the old Graphex today announced, that tehy are looking at various options for their Chilao Graphite project in Tansania. They also showed valuations of several, similar projects, which vary from 30 mill to 150 mill A$….They are looking at possible trade sale , IPO, all options. The original investor, Castlelake, has the right to 7,5 mill US$ debt owed to them…after that, all possible funds are available to MVL or or it´s shareholders! EV of MVL as at today is about 22 mill A$…leaving a lot of room for speculation!!!
Fortescue - 3 persons from senior management - the COO and two project developers - got the sack! Apparently lasrge cost overruns for their new , potential magnetite project. Rmour is 500 mill to 1 bill A$! The company reacted imemdiately with a very strong announcement - the MD as well as the CFO will also forgo all bonus-related payments! This is just a great company…bad that this happened, but I just love the way management reacts to it!
Chalice - announced more positive, metallurgical results. Buit the announcement also reminds us, that you just do not get 90% recovery for all metals from a multi-metal deposit! Positive overall, though. - but a lot of work left to do! CHN are well cashed up with 132 mill A$ to do much more than drilling and metallurgicla studies!
Have a nice evening!
WS