Good afternoon
amazingly, the US equity market is dragging Europe ( which has been slightly weaker all day ) into positive territory now! The S&P has made a golden cross ( 50day moving average crossing the 200 day average ), which apparently has signalled the end of every major bear market and was always followed by a sustained, positive market in 70 years! it seems that the US -guys are just not worried by the virus, and 65.000 infections just yesterday. That´s 1/3 of all German infections…
Base metals are also marching higher, led by copper, which is marching ahead relentlessly and is now just 2% away from a 2-year high!
And gold is again fighting to keep the 1800US$-level…
Hot Chili - I have followed them for a long time, without ever owning some…but they really seem to be up to something! Another 220m intersections announced today, which looks like extending the high grade resource within their Cortadera resource in Chile. When I say high grade, that´s 0,7-0,8% copper in their case…but the resource looks to be really large here. The problem with the stock: This deep exploration down to 1000m does cost a lot of money, and they have always traded cum-placement! But recently, they have raised 8.9 Mill A$ before costs at the ridicilous price of 1,5ct - incl options exercisable at 2.5ct. I missed that placement, and I am reluctant to enter them now, as obviously, this capital raising has been extremely dilutive!
Antipa - this little company has pulled off yet another major exploration deal! They signed up RIO for a big JV a few years ago - and RIO keeps on spending here, then they signed a similar agreement with Newcrest - and lastly, tehy have now signed up Independence to spend 4 millA$ within 2.5 years, and potentially, spend another 26 mill A$ and carry the AZY to finishing a feasibility study! Antipa has also placed 3,27 mill A$ fresh equity with IGO, and Newcrest subscribed for additional 350.000$ all at 2,75ct, to maintain their 9,9% interest in Antipa!
Antipa keeps 100% of 144 skm, which include the resource of 723.000oz gold and 26.400t of copper. This deal tells you, that the Paterson Province in WA ist still very hot! Carawine recently signed a very similar agreement with Fortescue, also on their Paterson-ground. Somebody will find something ! It´s probably well worth having a few…
Silver Lake - announced a nice resource increase from Deflector, which they took over with Doray last year! Great aquisition! The resource increased by 54% to 1,27 mill oz post depletion and gardes have increased by 18% to 13,5g!! But the company, which produces around 250.000 oz p.a. at ASIC of about 1400 A$ oz, and probably all.In costs of 1800-199 A$/oz, is capped at 2 bill A$! Great job - all well done - but overpriced for me, if I can buy a much cheaper producer with more ceratinty like West African in Burkina for 900 Mill A$, and similar production ( 200.000 oz and I guess for 10 years! ). Like many producing assets in Australia, it´s not cheap! The only value is in some developers!
Have a nice evening!
WS
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