Good afternoon
Trump Tweeds: We are getting close to a big deal with China! We will find out…whether, and if yes, whether it´s a BIG deal!
Not least since the FED-statement last night, markets are getting a bit more constructive with regards to growth for next year…more positive comments on nickel, copper, major mining stocks…steel and iron ore currently surprising to the upside…the A$ has been the strongest currency over the last two days as well…
Following Trump´s comments, equities really got into it - and bonds slumped. Metals, which were a bit cautious this morning, are now recovering and strat to turn green.
Labor market numbers in the States mixed, but still pointing to a tight market. Producer Price Index very subdued.
PGM´s continuing their run…South Africa is a basket case! Difficult to run a country with major electricity outages!!! I am nearly on my way - spending Christmas in Capetown….will have to put on the grill! Gold is strong today, helped along by a weak US$ and a continuing, subdued outlook for bond yields. It feels like it will test 1500$ again, soon? But this sentence was written at mid-afternoon - following trade hopes, gold is now down by 7$.
Another massive rise of nickel LME-stocks - this time 25.000 t! But prices are holding in London.
The US-military wants to finance a rare earth seperation facility in the US…Lynas seen as major beneficiary??Well, it certainly helps to have a mine in Australia, as opposed to say Africa!
BMW has signed an agreement with Ganfeng for the supply of 500 mill$ worth of lithium for the next few years until 2024…coming from Australia!
The Boss of RIO stated, that it might make sense for the big boys to look at smaller projects, which can be developed faster and easier, and still might have options to grow. Be prepared for RIO taking on smaller companies?? Well, Sheffield would come to my mind….unlike RIO´s major operation Richards Bay, not located in a difficult country like South Africa, but potentially, having a fully permitted mine in Western Australia within 2 years, and in an area, which is shaping up to be a real “mineral sands province”! But I guess he was thinking rather of copper or nickel…
Tietto - some nice drilling results from their project in Ivory Coast, 25m with 3,24g/ 7m with 3,77g / 4m with 4g / 4m with 4,7g are exciting enough, as they extend the depth of the resource down to 400m, the deepest drilling yet. The results are just underneath their high grade resource of 19 mt at 2,2g for 1.38 Mill oz of gold. Additional, Tietto had visible gold in more drilling, which has yet to be assayed. The company is purchasing a 4th, Chinese drill rig to advance the current 50.000m drilling program. TIE is one of the exciting exploration stocks in my portfolio.
Resolute - announced some very strong drilling results from their Tabakoroni project, in trucking distance to Syama in Mali. The best result was a stunning 12m at 93g gold, within sulphide ore, which - subject to furtehr metallurgical testing - should be able to be treated at Syama. There are numerous, otehr good drill intercepts as well. The underground resource stands at 850.000oz grading 5.1g so far, and looks set to be increased over 2020. The company has also been successfull in delineating two more nearby resources of gold in oxide ore - one with 100.000z, the otehr one with 270.000 oz. As we have seen recently, these oxide resources are very valuable, whenever the Syama roaster is either out of operations, or is subject to yearly repair work. Very promising results, reducing the risk to exposure to the highly automated Syama Mine.
Have a nice evening!
WS
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