Good afternoon
looks like markets can shrug of the negative news about J&J vaccine…and even the stronger than expected CPI in the States. I think the market is surprisingly sanguine, when it comes to inflation expectations…
Gold might be reacting to the CPI -it´s up 17$ currently - but also to a slightly weaker US$. Base metals are a bit stronger today.
Interesting to note, that GOLD ETF´s saw a small inflow the otehr day, followed by a very small outflow yesterday. Perhaps the tide is turning here? I think that would be very positive, potentially!
Osino Resources - classic buy the rumor sell the fact story yesterday! They announced a top-class maiden resource yesterday: 56 Millt at 1,06g gold for 1.9 mill oz! The overall resource contains 13.5 mill of indicated at 1g and 42.6 of iniferred at 1,08g, at what looks like a conservatice cut-off of 0,5g to me. This resource hangs very well together, will have a low strip ratio, and is profiting from low operating costs in a low-cost country, Namibia. The company expectes the vast majority of inferred resources to be converted to the indicated status. Metallurgical testing has also indicated high recoveries! The company is well cashed up for a large drilling campaign this year - and the evry quick discovery of 2 mill oz makes me think,that there is a lot more to come here!! And all of this with a nice, producing gold mine in trucking distance! I think Osino have had a good run and for most of recent times, they have traded at the upper band of valuations for a project at the respective point of development. But this announcement has been very positive, and the stock is probably now trading rather at the lower end of valuations. If Osino can show over the next few month, that this is not the end, the stock will close the year at 2$ I think! My wife´s cousin Heye Daun is doing a very good job!!! Some very nice hits with higher grades are giving me a lot of confidence, that the resource will ultimately be a little higher in grade, which would make a big difference!
Sheffield - Bruce Griffin, who has been appointed Comemrcial Director last year, has finally accepted his new role as Executive Chairman! This is very good news for one of my largest positions, and favourite, speculative story! Bruce is an excellent and very impressive man, and knows mineral sands inside out form very senior positions in the industry, over many years! The final, and changed feasibility study should be out within the enxt few weeks - and given the large equity contribution from the Chinese JV-partner, financing should be done quickly as well. I am hoping for start of construction some time this summer! Exact financial numbers we will only know, once the feasibility is out - but I would be very surprised, if the NPV will not be substantially above 1$ vs 43ct now. I think this is a great story - I like teh incomingboss, and the asset is great right in Western Australia. !!!
Have a nice evening
WS