Market Update

General - Syrah - Foran - Oceana - Mineral Res - Paringa - Sheffield

Good afternoon

Very good to see, that the two nice guys are getting on so well with each other, to develope what Trump calls a special relationship! So nice.......

CPI in the States exactly in line with expectations. German Investor Confidence falling quite heavily! OECD sees Germany growing by 2.1% this year and enxt, after 2.5% in 2017 - with risks to the downside from protectionism and Brexit...and I guess Italy!

Lots of positive vibes from the ultra succesfull listing of China´s largest manufacturer of batteries yesterday at a 45% premium. The new boss of Swedish mining company Boliden bullish for copper, based on additional demand from EV-industry - and certainly on nickel. He is expecting different markets for nickel for batteries, and nickel from NPI for some types of stainless steel.

Interesting play developing between the biggest mining egos of Western Australia! In the first place, Min Res ( Chris Ellison ) made a bid for Atlas Iron - then Andrew Forrest bought 20% of it...and today, Gina Rinehart (  Australia´s richest person and the iron ore baroness ) has also bought 20% of Atlas!!! Big doubt, that Gina has the deepest  pockets - but not sure about her intentions!

Somebody is still investing in the DRC...and not surprisingly, it´s China! CITIC is buying 20% of Ivanhoe Mines in a placement at a premium to the market. Ivanhoe is devloping a huge copper project in the country.

Cobalt 27 and Wheaton are doing a streaming deal for Cobalt with Vale, giving them 690 mill $ to develope undergound resources of nickel and cobalt at their large mining complex in Canada.

Syrah - what will be the world´s largest graphite miner is under presssure from sovereign risk! About 500km from the mine in Mocambique, islamist terrorist beheaded some people. I have not ehard about this kind of story from Mocambique so far....certainly bad news. But operations of SYR  have not been impacted in any way so far. Let´s hope, that this kind of terrorist activity does not spread in the country!

Oceanagold - the company announced some really excellent drilling results from their Waihi project in NZ. 5m with 60g gold; 9m with 30g; 42m with 7 and similar results from two different veins open up a realistic chance for a much longer mine life. OGC is now much more seen as a North American mining company, than an Australian they are subject to the well-known, negative vibes in that market. I think the stock is worth a very good look! Yes, there are country risks with OGC - but country risks seem to be nearly everywhere these days!

Foran Mining -placed about 7 mill Can$ today/yesterday ( stock was suspended) at effectively 48ct. A special Canadian way in doing placed some stock at 66ct to Canadians, who are able to get some immediate tax write-offs to effectively pay around 48ct as well. So the company gets the placement done to raise 7 mill$ for approx 12.9 mill new shares at average price of approx 54ct. Excellent news - the company is now easily financed to decision to construct a mine, expected by mid 2019. Foran is finishing their part of the deal - convert resources to reserves - over the next few month, before Glencore takes over to finish their part of teh feasibility study within 9 month. A lot of work has been done in the past - so I would really not be surprised to see them finishing faster than that. The project is more copper-than zinc-sensitive at current price levels, so they do like copper at nearly 3.30 US$/lb! If I assume, that all is going to plan, Foran will come into production at a time, when very limited, new supply is coming on stream....It took a long time ( as usual!!!! ) , but perhaps it actually works to the companies benefit! Stock should have a nice move now, I hope! 

Mineral Resources - it looks like the company might not achieve it´s target for shipments of Direct Shipping Ore Lithium for the year to 30th of June, based on port figures up to the end of May. A rare miss for this excellent company! I think current weakness is providing a good buying opportunity!

Paringa - suspended ! management changes expected.....someone has to take the blame for recent disappointments? I think it would be well deserved! 

Sheffield Resources - the Minister for the Enviroment has cleared most appeals to the Works Approval for the Thunderbird Project, with some minor, suggested changes to conditions. Over the coming weeks, SFX will finalise the consultation process, with definite approval expected early in the 3rd Quarter - I guess that is in July! Another step in the de-risking process, even though this one was totally expected. The main news will still be Native Title Approval - the Native Title Tribunal is expected to make a decision this month - anything else but a positive one would be a sensation...

Have a nice evening


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