Good afternoon
Retail Sales in the US slightly down vs expected slightly up
Gold is holding in A$ at 2211A$/oz…Platinum/Palladium in A$ new high of 3942 A$/oz combined price….but economically much more important, iron ore is under some pressure, following production numbers from RIO and Vale, which were both slightly better than expected.
ETF-holdings of gold fell yesterday, after 20 days of consecutive inflows. Positive equity markets probably weakening the interest in gold.
Base metals were very soft earlier on, but are recovering a bit in the afternoon…before especially nickel got sold down by 2.5% despite another strong fall of LME stocks and an ever increasing backwardation. Citigroup, which has a highly rated analyst team for metals, is indicating, that they see a large speculator manipulating prices and fear for more short term weakness. Copper down 1,1% despite several mine-disruptions by strike/blockades.
Global exploration expenditure has been falling slightly this year - Australia is taking over Canada as the largest explorer in terms of$. No surprise, looking at big budgets of mid-cap miners! Especially gold exploration strong in Oz - good for little Swick Mining, which nobody wants
Chalice - have given up recent gains over the last few days, as profit-taking has hit the gold sector. I think a good opportunity t build positions here! 12ct cash backing - 33 mill$ are more than solid ! Chalice are exploring for nickel in the Kimberleys, and probably more significant for now, gold in Victoria. CHN have a very good ground position there, and had seome strong, initial results. Tim Goyder has done it a couple of times in his life, most recently with Liontown and Strike , and within Chalice, has realised about 100 mill$ in asset sales over the years, of which a very significant part has been paid back to shareholders. A large drilling program is starting these days in Victoria - given the proximity to Kirkland´s Fosterville, any success will be reflected strongly in the share price.
have a nice evening
WS
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