Good afternoon
thanks Mr.Trump! Strangely enough, he is also planning to put tariffs on things like Rare Earth and Cobalt! Merkel has just survived the fight with her disgusting coalition partner, Seehofer - Trump is not any nicer and won´t be fun to spend some time with him at the NATO on the weekend. But who knows - Melania seems to have a new face, perhaps giving him a warm and fuzzy feel!
Trump is now starting to hurt big business and Wall Street - I wonder, whether he would survive such a fight! Important, Republican leaders have raised their concerns already...
Base metals got a real hit today...down close to 3%....Deutsche came out with a big update on metals. They regard trade-war uncertainties as a good entry point, like aluminium, copper, and are extremely bullish on nickel - seeing a record-high supply deficit this year. They can also see very little to replace Lithium Ion batteries in the foreseeable future.
Dacian - their placement to raise between 40-45 mill A$ at 2,70 A$ surprised everybody today, I think! They are buying a small royalty on their main asset, which according to Macquarie, has a NPV based on current reserves of 13 mill A$ - tehy pay 12 mill$ , and it makes sense. They want to have the balance for exploration....sounds a lot to me, and the timing is surprising, as they are just ramping up to serious production, having produced 35.000 oz last Quarter. I would have thought, that they are becoming cash positive this Quarter. Apparently, the placement went quite well - still, if I would be a shareholder, I would not be happy with the dilution at this point in time.
Resolute - update on Raventhorpe, their Australian mine, which is currently being expanded. Mine life expanded by 3 years to 2032 - but average production down to 15.000 p.a. from 120.000. AISC reduced by nearly 80$ to a planned 1097 A$/oz - good effort amid cost pressures from fuel, power and enviromental compliance. Capex over the lif of mine up to 327 millA$, from 258 Mill A$ - but large part of capex now only happening 2004, and some in 2020 - only 33 mill A$ in fy 2019. That´s quite positive, as they are right into a very large capex programm at Syama I think overall, this announcement is slightly positive.
Resolute will never be a low-cost producer - but at both operations, they have unusually long mine life, which is partially making up for the country risk. The exploration potential at Syama is still excellent. I think overall, RSG are still on the cheap side, certainly compared to the fabulous five! The stock is a strong hold - I am held back a bit from the relatively high risk to bring a block-cave mine into production in Africa - otherwise, RSG would be an outright buy!
hve a nice evening!
ws