Good afternoon
oil is very strong again today…traffic number from major cities in China are just about back to pre-corona levels, US demand for petrol has risen significantly, and we are back to the odd traffic jam in Germany as well…so financial players are joining in for demand as well!
Facebook with a top result after market last night, as was Microsoft,, as was Tesla as was Microsoft! US tech is shooting the lights out, again - and Amazon to report tonight after the market close in N.Y.
Royal Dutch Shell has taken 2/3 of their diividend -the first cut since WW II !! That is spooking the market in Europe today, as is a lot of bad headlines as to the state of the various economies. Ids this mightyful rally coming to an end in equities? It seems that a raft of very strong corporate results from major US-firms cannot prevent the market from coming under pressure today. Perhaps Amazon can save the day!
The newest idea of Mr.Trump is, that China only mismanaged the corona outbreak to make him look bad and making re-election difficult….
Base metals are under pressure, down roughly 1% , but gold is trying to firm up again…big 400.000 oz inflow into ETF´s yesterday, following a few smallish increases ove the previous 2-3 days. But with the arrival of US-investors, gold is also coming under some pressure as I am leaving
A myriad of Quarterlies out today - but most companies had reported important news during the Quarter already.
Paringa - another difficult Quarter for them, even though it was improved from the previous one. As you know, their US-subsidiary is under Chaper 11 and they will auction the assets in mid-june…I doubt, wheather there will be much left for us shareholders…
Breaker - the company announced some high grade results from widely spaced drilling for underground extensions. 1.8m with 13g / 2.5m with 11 g and 2.5m with 14g from 440m to 580m are certainly good news, and give us a hint, that the resource is extending further down - but I am not sure how tangible tehse results are. Otherwise, the company announced some lower grade drilling results, trying to extend the resource footprint. All fine and good - but not really game changing!
Prairie Mining - they are still assessing the chances of taking Poland to court - well, they have done this for some time now! They claim, that no discussions have taken place with JSW as well. All in all, pretty disappointing Quarterly. I still have my shareholding - but I am very uninspired!
Tietto - they have had a very busy Quarter, without much interference from corona. Lot´s of drilling results have been reported during the Quarter. 13.8 mill$ cash left at the end of the Quarter, after spending 1.6 mill A$ in drilling. They should have 5 Quarters left, before they run out of money…Lot´s of targets left to drill, and I have no doubt, that they will increase resources by the time they report the new estimate some time in the Sept-Quarter. - I guess by quiet a nice amount. There is a lot of reason to continue drilling at full speed, and tehy are continuing to do that with 5 company-owned drilling rigs. Ivory Coast will have elections this year, I hope halfway free of trouble. Otherwise, we will have more fun here!
Graphex - they are still suspended. Since the large private equity investor has withdrawn it´s support for the mine financing, things are obviously very difficult. The comnpany has a 5 mill$ loan with them, and I think they are trying to ringfence that loan to the project, to free up other company activities, while retaining an interest in Chilao. I do not blame management here - a mixture of bad luck, capex increases, country problems in Tanzania and external issues like trade war and corona have made things really hard for them. We will have to wait for further news, once the suspension is lifting!
Newcrest - are raising 1.1 bill A$! That´s very much a surprise…they are buiyng the Fruta del Norte debt , owed by Lundin Mining, in which NCM already have a signicifant stake. But that is only worth something like a good 50% of the placement….the rest seems to be earmarked for other projects. Perhaps a takeover of Solgold coming?? They claim, that tehy are in growth phase…well, where is that growth? Perhaps in a few years time - but nothing on the halfway immediate horizon?! They have announced a number of excellent intersections for gold/copper from Haverion in JV with Greatland - but I am sue, that many shareholder sill be p…ed off ! At a time, when tehy expect to reap the rewards from an investment in a gold miner, these guys are raising money! The crazy thing is, that quite a few shareholders will like that - using the opportunity of a discount to invest in gold, of which most people don´t have enough. No reason still to own Newcrest…They also lost the Special Mining Lease for Porgera in PNG a few days ago - not auguring very well for their relationship with PNG government - in that country, tehy have their second most asset, Lihir!! Year-to-date production was down at every mine so far, with costs up by nearly 20%….
Have a nice evning!
WS
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