Good afternoon
German busines confidence at record high
UK consumer confidence lowest since Brext vote
hmmmmmm - rethink????
Base metals are having another positive day...nickel back through 1200 US$/t....equities strong...it´s almost frightening!
Strikes at copper miners coming back to the fore...remember that 43 day strike at the world´s largest mine, Escondida last year? They did not come to an agreement - that was only pushed down the road to 2018. Many of the laregst mines in Southern America have work agreements expiring enxt year - I thinkl disruptions in 2018 will not be smaller than in 2017, given the strong copper price. Relatively militant, South American miners will want their piece of the ( large ) cake!
Genex Power - is making new highs these days, as their Solar Stage 1 project is basically done, and first electricty generation coming up in early December. I had not expected anything different, as a solar plant is no high tech - nevertheless, it´s always positive, when a young team delivers it´s first project on time and budget. Importantly, this project underwrites 2/3 of the current share price, and will deliver ongoing cash flow to them. More fun to come before Christmas, I hope, with more info on Sage 2 project, which is the large hydro pump project, which I hope will double the companies valuation again from here. The major news will be an offtake agreement with price guarantee - I think we might have to wait until some time into the 1st Quarter for this to happen. This announcement is expected to be the main value driver in the near future - followed by full fianncing, which is probably 8 month or so away.
Syrah - the company produced it´s first, bagged product ! Following a few problems last year, the team ahs performed well to overcome all problems. SYR will tarnsform now to the world´s largest and dominant producer of Graphite for various industries. If they behave responsibly, and don´t swamp the market, we could be in for some fun here. Outside of Syrah, I would only concentrate on projects which target different markets than Syrah - tehy will be the clear market leader, and have ample room to expand, while tehy should have a cost advantage to at least most other players. The company at it´s AGM stated, that they are talking to secure more offtake agreements. SYR are the most shorted stock on the ASX, with more than 60 mill shares shorted. I am long - the other side would make me sleep pretty bad at night!!!
I will have to leave before the US PMI comes out today - that could be another trigger for base metals closing really strong today!
Have a nice weekend
WS
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