Good afternoon
BREXIT-woes are not over yet....Sterling falls to a new low today, and some large property funds in the UK have stopped taking redemptions - and Italian banks are still in discussions about government help, especially Monte di Paschi, the 3rd largest bank in Italy. It´s market cap is 830 mill Euro´s today at a shareprice opf 29ct - down from an after crash high of 23 Euro in 2010....But Deutsche Bank and Commerzbank have also nearly halved this year...Commonwealth Bank is more than 5x larger by market cap than Deutsche, which could shortly be smaller than Macquarie Bank!! Deutsche is on it´s way to a new low today.
All of this is certainly a great enviroment for gold - as bonds are stronger again today, and yields continue to fall....gold ETF holdings still rising, and the Market Vector is making new highs, as I am writing ( gold at 1249 US$ ). Base metals are down today, with nickel holding above 10.000$/t so far.
Gold funds over here are not seeing much inflow - investors are waiting for a setback, which one would expect to happen soon - but I guess I would have said the same 1-or 2 weeks ago as well. There is just big appetite for gold out there!
Chalice Gold - following anew high today in the share price of First Mining to a new high of 86ct, cah + investments of Chalice after tax ar 21.9ct...stock is most probably too cheap, trading at 17ct. Chalice also owns a few gold exploration JV´s - I cannot judge on their merit.
Emmerson Resources - up 40% today, based on some good drilling results in their JV with Evolution neare Tennant Creek, home to Australia´s highest grade gold mines ( historically ). So far, this thing is fairly small - they are saying themselves, that they yet have to find out, whether this ( most probably ) small resource does extend at depth.
Lucapa Diamonds - have stated, that they are contemplating to list on AIM. LOM are currently road-showing in London. This could be a real positive - most of the world´s larger diamond mines are listed in London, and the example of Berkeley, which I believe have 50% of their register now in London, is a good example of stocks with exotic locations can do well in London ( well, Spain is not really exotic for us - but for Aussies, it is! ).
Last but not least - the fund we are managing here, Nestor Australien, is up by just under 17% this year so far - we are certainly benefiting from gold, but we emphasize, that at best 50% of our fund is invested across the resources entire universe ( many of the stocks we are talking about here, we are holding in the fund ) - otherwise,w e are invested in a wide spectrum of other, Australian companies. A good spread to get exposure to Australia with a resources-orientation. Despite our disappointing election, Australia is growing with 2-2.5%, and is far away from all Brexit-trouble!
Have a nice evening+
WS
Schröder Equities GmbH
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