Good afternoon
great Industrial Production numbers in the States the other day...the show will go on!
Apple paying 38 bill$ in tax by repatriating it´s cash...and will invest 30 bill in the US, though over 5 years.
Goldman´s loosing it´s lustre...commodity-and bond-trading very disappointing! Total return over 5 years for investors has been 88% - in good old Macquarie Bank, it has been 188%!!
4th Quarter growth in China 6.8% vs expected 6.7% - defying the doomsayers once again.
Following two days of consolidation, metals pick up steem again today, as European equities are just a little green.
SQM killed some prospects for Australian lithium miners, at least in the longer run. They reached agreement with the Chilean authorities, which will enable them to tripple production of lithium carbonate to potentially 220.000t p.a.over 5 years. That´s a big number!! On the positive side, this decision should alleviate some fears, that not enough lithium would be around to satisfy the rising demand from EV´s. I have no doubt, that this story will take the heat out of lithium stocks.
Cobalt is making new highs this week. A little surprising to me, as especially Glencore have announced plans to significantly increase their production.
Oz Minerals with a very good Quarterly yesterday - production at the better end of guidance, and costs at the lower end. The company generated 90 mill A$ in cash, despite spending 90 Mill$ on growth ( mainly Carapateena ). Prominent Hill mine life has been extended to 2029 by adding underground reserves. More importantly, they lifted guidance for 2018 and -19 by a total of 15.000t over the two years, but gold production has been lowered by 20.000oz - obviously, the upgrade of copper is much more significant. For copper fans, OZL is one of the few, significant pure exposures in Australia - and it´s a well managed company. I am a shareholder through my fund Nestor Australien.
Graphex - while I had hoped for a fixed agreement with the Chinese JV-partner, to finance the mine, by now, the company updated yesterday - good news and bad. The bad news is, that the financing has not been fixed yet. The good news is, that the Chairman of the ( very significant ) Chinese JV-partner wants to visit Tanzania and meet with government, before making a decision. This meeting is planned for late January. This I do regard as good news - it shows the high importance of the planned graphite production to the Chinese, and it will put pressure on the government, to strongly support the project. Like in many, African countries, China is playing a significant and growing role in Tanzania. I still believe, that this is a great story, and very cheap. GPX will also present on our conference on the 23rd of Feb in Zurich. If we are lucky, the final financing will only be completed after the conference - but I would not bet on that!
Venture Ex - great little toy for the speculators, given it´s 2ct share price!...but also with increasing substance: They announced some excellent drilling for zinc and copper at their Sulphur Springs project, which edges closer to a development decision by mid-year. Largest shareholders are Northern Star, and a well regarded, Perth-based resources fund. Not sure, whether I would buy the stock today - but on a setback, I think they are worth a very good look.
Chalice - have announced a large and increased exploration program for the Canadian gold project, which I like. Not having found suitable investments for their large cash holding, they are now finally getting agressive on exploration! The company is trading just a few % above cash backing...
Gascoyne - they are now putting their- recently raised - money to work, and announced 75.000m of drilling , split between their main gold asstes. I would be pretty surprised, if we would not see some good numbers coming out of it! GCY will also present in Zurich, just before going into production in June. We should have some fun with it over the next 6 month, as every 100.000 oz in additional reserves increase mine life by 1 year or 15%, which has a big effect on the NPV.
Oceana - announced some excellent numbers for the last Quarter. 166.200 oz at AISC of 564 US$/oz are certainly very classy! Didipio continues to be a real money-spinner, thanks to the excellent and substantial copper production as by-product. Waihi in NZ had a strong Quarter, as had Macraes. Perhaps most importantly, the relatively new operation Haile produced nice results, as recoveries shot up, and the process plant performed at design capacity. For 2018, OGC expect lower production from Waihi ( mining lower grades ) and Didipio, as the mine progresses underground and production will be mainly from stock-piles. Macraes and especially Haile should see higher numbers for this year.
Have a nice evening
WS
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