Good afternoon
We would like to invite you to our yearly Australian Resources Conference in Zurich, 24th of February, Hotel Baur au Lac. As always, the attending companies are inviting all interested investors and other interested followers. Please pass on the information to your colleagues as well!
Please register by clicking this link:
Australian Resources Investment Conference
This year, following companies will attend:
Evolution Mining / Perseus Mining / Panoramic Resources / Prairie Mining / Genex Power / Graphex Mining / Breaker Resources / Peak Resources / Finders Resources / Energia Minerals
Market Update
still strong PMI in Europ, even stronger in the US - housing market strong enough -The positive run of economic numbers around the world is continuing.
Trump cancels the Asian/US Trade pact....McCain believes, that this is a big mistake. Australia´s PM has the right answer - well, let´s potentially replace the US by China! Great idea! At least in tactical terms! Minister of Defence loves the NATO - Trump regards it as "obsolet". "Millions of Illegals" have voted for Clinton, manipulating the election. It´s really frightening!! I am taking bets for Trump not surviving in his job for more than 2 years. The guy is a joke - albeit a dangerous and very sad one...As the FT points out today - if the White House is obviously lying, how can you possibly trust them at a time of crisis????? I stopped believing the American Government after 2003 - but I guess most people have done so until Trump came around the corner! "Alternative Facts" is the new word for the "Truth", as we have known it!
I can only repeat - put some gold under your matress, or into a vault! Europeans ( mainly Germans? ) are doing so - the German XETRA Gold ETF has had by far the largest money inflow last week - 544 mill US$. Still relatively small against the US Gold ETF - but the downturn there has been stopped, and small money is flowing in as well.
May is loosing in the courts - BREXIT will most probably be slowed down! Good on her...we Germans don´t like the POMs anymore since last summer ( well except for these beautiful princesses! )
Iron ore and Steel strong again - holding amazingly above 80 US$/t....mining stocks in London and North America very strong indeed today, as RIO is profiting from the sale of Hunter Valley thermal coal assets for 2.35 Bill US$ to state-backed, Chinese Yancoal.
Cobalt is starting to run - mainly driven by investor interest, for now. If there is one metal, with good demand-growth, and very high risk of supply-disruption, it got to be cobalt. While most nickel producers have it as a by-product ( but sort of meaningful ), the majority of supply is coming from wonderful Democratic Republic of Congo....and electric cars cannot do without it. The vast majority of batteries is using cobalt...
Macmahon Holdings - one of the larger, Australian earth-movers has received a unconditional, final ( knock-out )bid from largest shareholder CIMIC, the subsidiary of German/Spanish Hochtief AG. The company has been in strife for some time now - I think one should end this saga and accept. The sector has been consolidating it´s strong run for a while now - could be right for another move. Look at good old Ausdrill, or Swick Mining ( in which I have a holding for the fund ). Good drilling company, family-controlled, and very streamlined like most other companies in the sector, which have survived the last few, tough years!
Peak Resources - getting ready for the upturn! The feasibility study will be finished in late March/early April - I believe, that we will see progress from the pre-feasibility study in terms of capital as well as costs. Testing of recovery via a leaching process for Neodynium and Praesodynium has resulted in more than 90% recovery for these very valuable Rare Earth Elements, and the site of the refinery has been found in the UK, as reported earlier. The stock is doing very little...next move will be up! Listen to them at our conference in Zurich...should be a good story!
West African Resources - Clarus from Canada updated research, valuing them at 63ct. This does incorporate some exploration success - but in any case, at 32ct, they are very cheap. Clarus is modelling 150.000 oz p.a. at AISC incl exploration of 790 US$/oz for them. This project will find one or two aquirers, I believe. Unfortunately, not coming to this years conference, because of time constraints. They will be a winner...well, I hope so, as I have a reasonable position in my fund.
Western Areas - good Quarterly! They generated about 17 mill A$ in free cash from their mining activities- not a bad effort in light of the nickel price last Quarter ( which was 10% higher on average than today ! ). Does not augur very well for the current Quarter. I think they are cheap - but I would want to wait with buying, until we have more clarity as to Indonesian- and Phillippino government- action.
have a nice evening and enjoy the bull market!!
WS
Schröder Equities GmbH
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