Good afternoon
don´t fight the FED…that´s what we have all learned over the last 20 years or so…but it does not have to be right forever! Despite Powells extremely dovish comments last night ( or because of them! ? ) the US 10 year moved to a new, recent low at a yield of currently 1,74%…yields are approaching levels last seen in Jan 2020….FED will keep it´s benchmark at zero for at least until late 2023….that should give us 2 years of commodity bull market . The US economy is growing by 6,5% with short term interest rates at ZERO! God knows where all this will end! I bought some physical gold and will buy more into the bod-induced dip - despite god-ETF´s holdings still falling relentlessely!
Equity markets are slightly stronger today - base metals have been strong earlier on, but are roughly unchanged by late afternoon, while gold is under pressure from weak bond markets.
Unsurprisingly, tech continous to be under pressure as well.
Palladium is having another very strong day - now very close to all time high. The combined Pall/Plat price is at a new all time high today…and if I include Rhodium, it´s looking even better for producers of PGM´s! What a pity, that Panoramic had to sell it´s PGM-asset! I guess listed seperately, it would be worth a lot of money today…
Strike Energy / Warrego - great announcement today - very good progress today. They have not reached the main target zone as yet, but as the well showed a 35-40 m net gas columne, the JV is testing this zone now, before drilling to final depth of close to 5000m ( currently at 4248 m ). It might be a little early to say this - but the current drilling looks increasingly like it will increase resources, not only validate previous drilling. I think with the additional testing, the well will take another 3 weeks for final results.
Apollo Consolidated - have sold their African royalty for 20 mill A$. I have little doubt, that it will be worth more down the track - but AOP is now in a position financially, with more than 30 mill A$ cash on hand after tax ( and probably more like 33 mill A$ ) , that tehy will never need fresh equity again until they make a decision to mine! I can´t remember, when their next resource estimate is due - I guess by the middle of this year. AOP have survived the sell-off in gold very well, but they are still on the cheap side.
Marvel Gold - excellent drilling results from Tabakorole in Mali, yet again: 40m at 1g gold/ 33m at 1,1 g / 31m at 1,1 g / 10m at 2 g are the sort of results the market wants to see from them. Even better would be slightly better grades! Nevertheless, these results will increase size as well as grades of the current resource . Results from 20 more holes, plus a few diaomond hoels are either in progress, or at the labatory already - so no more results are expected shortly - probably with the Quarterly. As I indicated above - I would love to see grades slightly higher - but very positive metallurgical results ( some of them have already been announced ) and a low strip ratio can make up for this. I think at current gold prices, MVL is a good way down the track to have a developable gold asset on their hands. I think plans for the Tanzanian graphite asset are alos making progress - an IPO is definitely an option. It might have been complicated by the death of the Tanzanian prime minister today - things like this always create some uncertainty. But with a market cap like today of 25 mill A$, I think the eitehr of the two projects in MVL is worth this - and both potentially more! So make up your choice - you have either gold, or graphite for free here! I find it nice to have the option, and bought a few more the other day.
Foran Mining - announced some more drilling results from Mcilvenna Bay today: 16,4 m of continous mineralisation incl 8.7m with 3,53% copper eqv / 17m continous incl 2.8m with 4,8% copper are not as outstanding as the last round of results, but certainly very positive. The drilling program is in full swing with 3 rigs, and I think we can be sure, that the indicated resource of Mcilvenna Bay will continue to grow. At current copepr prices of 4$+/lb, the stock is very cheap still, despite the nice run they have had!
Have a nice evening
WS