Good afternoon
another relatively volatile day for gold…initially a bit weaker, despite a weak US$, but recovered in the afternoon…
Base metals are having a huge day…strong in Asian trade, followed by some profit-taking - and then they took really off! Goldmans with very bullish statements, especially on copper, which is up by 4,5% late afternoon, and nickel up by 3%! Copper at 5,15 A$/lb / Nickel at 11,34 A$/lb….copper above 4US$lb !!!
PMI´s in the States remain very strong, as expected.
Worry: Bonds continue to sell off! US$ 1o-year now at 1,33% yield - up from 0,48% 6 month ago! But Yellen wants to pump up the economy!
Foran - looks like it wants to finish the consolidation, and break out to the topside!! new research report values them at 1.90 Can$ 12 -month view, and at above 4$ long term. But that is at 3,25 US$lb for copper - we are currently trading at 4,05 US$/lb, and some analysts are calling for a 500.000 t deficit this year demand vs supply! Copper stocks generally - Antofgasta, FM, Lundin etc are all through the roof! The smaller end will follow suite!
Panoramic - feels like they will never break out!!! But believe me - deep value down here, and they will be chased up soon! Nickel has some chart resistance at 20.000$/t - but I do not know a single forecaster, who would have current prices in his estimates! And not only that - PAN will be producing 5000t of copper approx from mid year - and 650t of cobalt! Both prices are racing, cutting costs for nickel production very substantially! We will have fun…one day - perhaps Monday??
Dacian - soon to be merged NTM announced some excellent drilling results from 30-40-50m depth: 9m with 20g / 17m with 11g / 6m with 15g and more of this type. This is infill drilling on a 25x25m space, which will end up being a nice , indicated resource. Good for a nice start to the merged entity! And obviously in trucking distance to the existing plant. This is what Daacian needs most: More mine life - a little bit like Gascoyne, but at a larger scale.
Genex - what a yawn! Another extension…now until end March. Boring, but will happen!
Have a nice weekend!
WS