coking coal prices ( from 150 to 176 US$/t ) and thermal coal prices ( from 80 to 88 $/t ) have immediately responded to the infrastructur problems caused by Cyclone Debbie in Queensland. Good for some, bad for others! But it shows, that there is not that much supply overhang, if any at all!
Gold is toying again with strong chart resistance...feeling good , despite a US$, which is tredning higher again. Base metals are slightlöy stronger as well, as I am writing this late afternoon.
The recent tendency, that larger gold producers are rather buying into exploration stories, than just take over producers, is intensifying:
Cardinal Resources - Gold Fields Ltd have bought a fully diluted 10.35% stake in the company, via shares and options. Cardinal has a large resource of 4 mill oz, and potential to 6 mill ounces, at relatively low grade, and not that straightforward metallurgy, which looks managable...but with a 1.2g-ore body, might not be the easiest project. Very recent drilling results have been much better grade - perhaps GFI have done their homework and came to the conclusion, that overall grades can be improved.
Peel Mining - St Barabra have taken a 3 mill$ placement in the company, which I do not know that well. A Western Australian , polymetallic project seems to have the most potential.
Paringa Resources - very interesting announcement from Alliance Resource Operating Partners, which is the largest coal operator in PNL´s part of the US - they are placing 500 mill US$ worth of bonds...will be interesting as well, to see the terms on the 7th of April. This will increase their liquidity to 200 Mill US$ + very substantial credit lines. The EV of PNL is about 100 mill US$ today....Analysts have speculated in the past, that Alliance might want to further consolidate the sector, and remove a potential competitor....for say 145 Mill US$ they can have my shares! Let´s wait and see - this is all pure guesswork, but as you know, the NPV of PNL´s both projects is substantially higher than this.
Have a nice evening
Schröder Equities GmbH
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 email@example.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.