Good afternoon
equities slightly down in Europe , slightly up in the States - metals slightly down as well except for nickel. Goldman´s and Glencore are of the opinion, that it´s too early to see Indonesian nickel production , using a new process, suitable for electric vehicles. I might add: Even IF - at least 140.000 US$/t nickel have been quoted as production costs, which is 10% above todays level.
Glencore came out yesterday with a very bullish presentation on nickeln…Goldman´s still see 15.000$/t in 3 month / 16.000 in 6 month/ 18.000 in 12 month! Would be nice!!
Prairie Mining - there have been several newspaper articles in Poland recently, where politicians were calling for Jan Karski to be developed, and Debiensko to be brought into production via a neighbouring mine of JSW….the prime minister has verbally and publicly supported, that JSW makes a deal With Prairies….the old Boss of JSW will continue to run the company. Various research reports are seeing the need for a deal between JSW and Prairie, to revive the underperforming company. For me, the only question is, which deal can be done , while saving the face for the Polish. Remember: Prairie bought the two assets for a token - now the Polish will ahve to buy them back. Reportedly, JSW has done extensive due diligence, and should be ready by now to have formed a view. Hard to say, what will happen excatly - but there got to be a deal, and while it will not be a deal close to what the assets are worth, it will have to be at a considerable premium to the current share price of PDZ.
Sheffield - have now the “voluntary” aboriginal agreement, as well as won the court case - nothing in the way anymore to develope this excellent asset, except for one small little problem: the necessary equity! I am still hoping, that it will be provided by a corporate - but the share price is telling me, that it won´t! Pity - the stock is sooo cheap…
West African Resources - no one can say, that the company is just waiting to be taken over! They have started the boxcut for the decline, and have placed order for the sag mill, which is a long lead item, with Otoukumpu. They have also a capable management team in place, which has has built several plants in Africa including Burkina. The amount of equity needed should be relatively small, as debt-capacity of the project is very significant and should be North of 160 Mill US$. The company is also still drilling and should be on the way to produce more than 200.000 oz p.a. for 7 years, given recent exploration success. But this we will only know some time during the 1st Quarter 2019.
Have a nice evening!
WS
WS
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