Good afternoon
Nestor Australien - my little fund is doing well! As at today, I will be up by 2% this year in Euro terms - up by 12% over 1 year, and up by 25% over 5 years - not too bad, considered, and also pretty good vs the market in general….There is hopefully a lot to come - some of my big positions are very cheap, I think -West African / Strike Energy / Ge nx / Sheffield / Horizon / Nine Network / Metro are all have a bright future ahead!
this is fun…but it´s also making me nervous…things are booming! Europen equities are a little stronger - Germany especially, driven by a strong result from SAP - and US market opended up as well - driven by NASDAQ! Well, that was an hour ago - US has turned around for the worse, as has most of Europe! People are getting increasingly worried about sky-rocketing infections in the US…bloody Trump has no handle obviously on the situation….
The Supreme Cout decides, that Trump has to open up his accounts/ tax returns! Well that could be fun for observers! The election is coming soon…! Looks more and more as if we will have a new president!
The market is happy with US labor market numbers - slightly better than expected, but bad enough still to make the FED print print print and TRump spend spend spend!
Base metals having another good day, led by copper. Palladium back through 2000 US$/oz for the first time in a while! Copper is making a new high for this year - Evolution will like that! Important by-product for them…
Hopefully, no trouble looming in Ivory Coast, as the planned successor of the current president has died. Unstability is never good - and elections are only 4 month away. So far so good - but we need to watch this! Perseus and Tietto are among companies active there.
Tietto - announced results of detailed metallurgical testing - excellenmt stuff, to say the least! relatively large grind size ( = not too much crushing ) results in 98% recovery from Gravity and CIL. Previous results had already shown strong recoveries from gravity alone, resulting in probably relatively small leach tanks to be build. These results should augur well for the pre-feasibility study by 1st Quarter 2021, as capex should be relatively small, as well as power consumption. By September, we should have the new resource estimate!
Bellevue - company is raising 100 mill$ in placement, and 20 mill in SPP. A little bit opportunistic in my opinion - tehy have not done a scoping study even and hence, would have only a very limited idea, how much capex etc needs to be spent to bring this in production…On the other hand, I would think that 100 mill A$ of this raising should go towards building a plant etc - most probably, this represents enough equity - rest coming from the banks. So with a bit of luck., BGL are readily financed for going into production - even though that would not happen before mid 2022. We will find out more over time - perhaps not a bad idea to use this frentic demand for gold stocks to fill the coffers. But I would not call BGL a cheap stock - too many questions still to be answered to do so!
Chalice - announced anotehr set of very strong results from drilling Julimar! The company is drilling full steam ahead, 23,9 m with 1,7g Pt/ 0,4g PT / 0,5g gold/0,7% copper is certainly interesting - from a new style of mineralisation compared to previous results. The company also announced some very long, lower grade intersections from disseminated suplhide mineralsiation, like 238m with 0,6g Pd / 93m with 0,9g PD and 0,2g PT etc….all in all - they are on to something, no doubt.. How easy the orebody will be , we don´t know yest - but we know, that CHn are up to a large tonnage target here.
Graphex -listened to a new presentation today. The new Graphex is hot, and we will see this on the 20th or 21st of July, when the stock should relist, once the AGM has voted on the resturcturing. Graphex will become a gold explorere in Mali, with a graphite asset in Tanzania, which is to be sold and will hopefully return a little bit of cash to Graphex! The company will eb renamed Marvel Gold…In Soutbern Mali, close to Ivory Coast, and close to some major mines ( but probably not in trucking distance ) the Tabakorole gold asset has a resource of 600.000 oz, back from 2007. There has been quite a bit of drillimng since then, which will probably increase the grade as well as the tonnage - but some of the older resources ( done at a very low 0,2g cut-off ) might also go missing. Overall, probably an uchanged resource. the company has already doen some drilling, and will try to do some more during the forthcoming wet season ( should be over by September ) , to show continuity of the resource ( some good intersections of lower garde like 0,8g gold have already been made) and extensions. The target here is to bring the resource above 1-1.2 mill ounces, to eventually prove a mineable and financable project.
The osther asset is close to Sadiola, a major mine, which has just been sold, with a very large and hungry plant - called Lakanfla. This is the asset quite a few geologists are exited about. While some old drillimng results have been made like 26m with 5g / 18m with 4,3 g - this asset is at a much earlier stage - but it might well turn ut to be the larger prospect. But a lot of work remains to be done here to prove Graphex´s concept.
Resources of comparable companies are valued in many cases at 50-100 A$ / oz - if we apply this, we would end up at 30-60 Mill A$ in market cap. I find this upper limit here very rich - in the end, the existing resource at Tabakarole has no plant in trucking distance and will probably have to go it alone. But I could initially well imagine to see a market cop of 30 mill A$ for Graphex! Once the stock comes back to the market, it will trade cum entitlement to the planned 1:1 rights issue at 2ct - so anybody who does not want to be involved in gold exploration, will ahve a good chance to sell his stock at probably much higehr prices than the last tarded price of 3,8t. Once all capital raisings have been bedded down, we will have 413 mill shares outstanding. If you use what I think is a conservative target in thsi market of 30 mill A$ market cap, the stock could well trade up to 6—7-8-9ct. This answers the questions, whether you should take up your rights at 2ct! But wait until you will be notified by your bank or the register in late July…
Hopefully, Graphex will be able to make us quite a bit of the lost money back over the enxt few month!
As I am finishing just before 6 am, gold is trying to hold the 1800-level…
Have a nice evening
WS
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