The US market is happy so far with the reporting season, and even managed to shrug off Amazone´s Quarterly today.
Consumer sentiment in the States is holding up quite well.
Unrest in Chile seems to quieten down a bit - but gaining more widespread following on the other side. It appears, that most mines are back to work…
Glencore with an average result….
Gold is up a few $, but currently trading below earlier highs - a relatively strong US$ is probably not helping, and despite another relatively strong day for US-equities. Base metals are mixed today, without a lot of price action. Nickel stocks on the LME have about halved this month - by about 80.000t ( which have a value of about 1.3 bill US$ ), the largest monthly fall ever by a long shot. Somebody must have a pretty big punt on! The price is nearly unchanged today at currently 16.810 US$/t.
Strike - announced an excellent flow rate of 69 Mill cubic feet/day from it´s West Erregulla well today. This is better than expected! There seems to be a bit on confusion in the market - the result compares very favourably to the Waitsia 1 well, drilled a while ago by AWE, before tehy got taken over. Waitsia 4 performed better than West Erregulla - but that achieved by using a much wider choke. Pressure, porosity as well as gas quality are all excellent to good, and an analyst today expected the flow results to lead to a higher than expected resource than previously expected , and fewer development wells to be drilled, saving capex. I am not sure, whether some investors are interpreting these results incorrectly, or whether they just acted on the old rule: Buy the rumour - sell the fact. I guess it might be the latter - especially, as everybody knows, that Strike will need some financing. In any case, great news from a fundamental perspective!! The next news will be the first, independant resource estimate - probably in November - and potentially some news on Jaws flow result, STX´s second project, in December.
Resolute - updated today on their roaster-problem at Syama, which has been out of work for the last two weeks. Problems will take anotehr 6 weeks to resolve…and I guess, might need a few weeks to be fully in production again thereafter.At this stage, the company maintains the 400.000oz production guidance for this year mainly, as above budget performance of it´s other miens is making up for some lost production at Syama. The cost of teh repair is about 5 mill$ less the savings by not operating it - so no major drama…more detail is expected on the 31st of October, when they will release the full Quarterly report. Market is happy to have more certainty now, and RSG have been strong today.
Tietto - a well know analyst, Chris Baker, came out with an initial assessment of their Ivory Coast-project, and was pretty upbeat on the company, I hope, that my slight concerns, raised yesterday, are unfounded…I will leave it as it is, until I have met him as well as the company in early November in Australia.
You will hear little if any of me over the next 2-3 weeks, when I will travel in Australia. Gives you some breathing space from my continued beating down of Trump, and talking up nickel and Panoramic!!
Have a good time!
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