Good afternoon
so Johnson is the new foreign minister of the UK - almost an insult to have a liar as foreign minister...Otherwise I have to say, that Mrs.May seems to be a very respectable person to run the country - hard nut, but making the right noises. One thing is for sure: She should not expect too much compromising from us....I hope, that Cameron never turns up again - but I am sure, that before long, he will appear on some advisory board of Goldman´s....
Australian job numbers were strong and helped the A$ a little higher.
Base metals still want to go higher...zinc up 1%, nickel up 1% ( Macquarie substantially increasing the forecast deficits in supply for 2016 and 2017, even before disruptions from potential mine-closures in the Philippines ), copper and lead up a little. But gold is being hit again today - trading just above 1320 as I am writing. The upward trend is running at 1300 - so that better holds - but I think it will. It needed a breather...and while equities are going higher every day, investors are led to believe, that everything is absolutely wonderful!
FAR - JV-partner Conoco ( 35% ) sold it´s stake in FAR´s Senegalese asset for 430 Mill US$ U valuing FAR´s stake at 241 Mill A$. Adding their approx 80 mill$ in cash, that´s about in line with the market cap. A bit disappointing, even taking into account, that major companies are not the best sellers of assets, usually. Stock reacted negatively today...and I think they are quite sensitive to the oil price, which is not positive in the moment. Talk is, that deap water assets like FAR´s need 50 US$ to be developed....which should be conservative, once the oil field can produce in a few years time. But obviously, it´s much nicer to make a positive decision, when oil prices are above the needed level. In general, I believe, that oil could well tarde between roughly 45- and 50$ for WTI for some time, as prices above 50$ should see US shale producers turn on the tap again.
Middle Island - they are certainly doing something to underpin the stellar performance they have had this year! They bought the Sandstone Mine in W.A.of the receiver ( the deal was negotiated around Christmas, when nobody wanted it, but only settled in April ). They bought it incl of a 600.000t plant, and have enough cash to develope the asset to a feasibility study. At this stage, it looks like tehy need only 8-9 mill$ to refurbish the old plant. Today they announced some progress from a review of old exploration results, and some re-assaying resulted in two holes giving them 22m with 23g / 8m with 56g / 5m with 26g from underground drilling, in depth of 200-300m. The holes will be followed up shortly by some more drilling and could end up forming a nice, add-on underground resource. MDI won´t be a major story, at least not from Sandstone - but they could well make some money back for some very old backers, who bought them in the IPO many years ago! I would expect some nice drilling results, before they will end up raising some more cash - but that could be some time away.
Cardinal Resources - another very nice drill hole today: If they continue this way, their resource will easily make it to developement! As you know, the grades so far looked like a 1-1.2g ore body, and even though it will be rather large - 2-3 mill oz? - and with a low stripping ratio, that is still on the slim side. Today they reported 75m with 2,88g, 66m with 1,54g / 47m with 1.26g / 30m with 2.08 g / 29m with 1.72g / 24m with 1.12 g and 15m with 2.,19g. They are the type of holes they need to increase the overall grade!
Talisman - is coming back to life, on the back of some renewed interest in base metal stocks, and a nice run for the JV-partner Sandfire. I am still expecting SFR to bid at some stage for TLM, to get rid of a junoir partner, and a better share price makes a bid more probable. The JV has now applied for a mining license, which should not take too long to get in W.A.. The resource is just 10km away from SFR´s plant, which could increase production and could well do with longer reserves.
Manas Resources - I believe, that some punters in Switzerland might have some left in this nano-cap....Resolute is gradually increasing it´s shareholding ...now over 7%...interesting one
Chalice - their shareholding in FF in Canada is going through the roof....FF today up by another 15% or so...at 1.30 Can$ ( last trade and on 7.7 mill shares turnover today ) Chalice underlying NTA, consisting of 37 mill A$ cash and 32.5 mill shares in FF, is 75 mill A$ ( after tax on any profits on selling FF )....they are capped at last trade Australia at 52 mill A$. The discount should be 20% at worst - if any, for a company, which has done two significant transactions over the last few years, and has made big profits on both....You can be assured on a big pay-out to shareholders, as they have done before, on top of the currently operating buy-back.
Last but not least - a link to some analyst, who has analized our Nestor Australien fund - I think a very fair assessment. http://www.aktiencheck.de/kolumnen/Artikel-SJB_FondsEcho_Nestor_Australien_Fonds-7302511 As at today, Nestor is trading at 191.62 = + 24.33% this year,, and more importantly, up by about 11% over three years - we are catching up big time!
Have a nice evening
WS
Schröder Equities GmbH
Seitzstr.7a
80538 München
Tel. +49-89-4613440-0
Fax +49-89-4613440-10
email: wschroeder@schroeder-equities.com
website: www.schroeder-equities.com
eingetragen im HR München, HRB 166985
Geschäftsführer: Wilhelm Schröder
The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at bscott@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by unauthorized persons.
.