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!