Good afternoon
everything a little weaker today in the morning , but unchanged late in our afternoon.- except for Palladium, which is trading at 1395 US$oz in the moment and went through 1400 for the first time in history earlier in the day. 9 consecutive years of supply deficit are expected to be continued over the next few years as well! Great playing ground for the hedge funds!
US consumer confidence numbers are falling - I am sure, that the record-long shutdown does not help!
Trouble in the DRC is coming following what looks like a massively manipulated election! Nevertheless - cobalt is still falling and has more than halved now.
Pilbara Minerals- announecd production numbers for the last Quarter, which imply strong ramp-up of production in December, and equally strong increase in recovery rates. These numbers are certainly promising for the immediate future. In the longer run, the stock appears definitely cheap! Annual EBITDAof 500 Mill$ in the medium term, and a high quality resource make them interesting. What I do not like for now is teh fact, that tehy only produce spodumene ( with a 6.1% lithium content ). But in the medium term, they will start producing lithium hydroxide in JV with Posco in South Korea. I would like to see more value-add done by the company - I think that might be happening, but not in the next 2-3 years. The MD is very bullish on the longer term for lithium demand - the company expects a 16-fold increase in lithium demand from 2018 to 2035! Together with Mineral Resources, these two companies offer the potential to become “blue chips” of Australian lithium production - with limited risk now. A great stock to accumulate at current levels, with a view to double your money over the next few years. Nothing to make you rich - but 20% return p.a. for the next 3 years are looking like a good chance to me! By that time, Stage 2 of the project will be fully up and running, and the Korean hydroxide JV should also
Osino Resources - the Canadian company reported good progress in Namibia. They have discovered a good correlation between results of calcrete sampling ( which forms the relatively thick cover ) and gold grades as well as magnetic anomalies, auguring well for future exploration. The company has made good progress and delineated a massive anomaly, incl some good drilling results. But to me, the project looks potentially too large for such a small company to carry out the necessary exploration on it´s own - especially in this market, where it´s hard to attract equity from the market. Some corporate involvement would be great news for shareholders, I think - but perhaps Osino can advance a little more, before they get in the hands of somebody larger!
have a nice evening
WS
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