Good afternoon
The trade war rollercoaster continues …following a really nice week, today metals are under pressure again - the market is rather disappointed today , as the trade war seems to have no end in sight. Tomorrow, the strong man could loose the elction - it remains to be seen, whether he will moderate a little.
European equities are trading slightly positive, while we are angry about the US going it alone on Iran, and pressing everybody to play to their tuen - well, most - some got nice exemptions! Very strange - and we are just letting them get on with it!
US Services Industry still having great momentum.
Genex - had their AGM today. Nothing enw there - except for a comment from the Chairman stating, that the company would expect progress on financing for the hydro project - namely offtake ( agreement ) - in the “very near term”. This sounds great! A good offtake agreement is the last, important issue to be solved before financing can be completed, I believe! And the “very near term” I would think is within weeks, rather than month!?
Graphex - announced a very positive, potential financing for their graphite mine in Tansania, with private equity group Castlelake. having said this - it´s very complicated, and there are many IF´s to be cleared up, before th majority of it can take place. For now, they will advance up to 5 mill US$ to the company, to facilitate everything to for the project to be construction-ready - so the company does not have to raise any more cash before the bankable feasibility study is finished. The debt is expensive - 15%, for 2 years, and 1.6 mill shares for free. Castlelake will provide over time up to 40 mill$ in equity and 40 mill$ in debt to construct the project. GPX wants to keep total equity owned by Castlelake at no more than 40% of the company , though - and the placement will not take place higher than 28ct. The whole thing is subject anyway to various Tansanian approvals. So in a way - yes, we have a financing - but then, it´s highly conditional….The most positive is, that these guys are coughing up the 5 mill now , and will also put in equity later - that´s something tehy have not done in previous financings for mining venuture. So tehy have significant skin in the game at company-equity-level….should prevent them of screwing GPX too badly on loan terms. Having said this - 15% is very expensive - but who would finance something in Tansania these days?! And with a payback of less than a year, I am not too fussed. Will be interesting to see, where this all leads to. A new research report on their webpage from respected analyst Chris Baker. He arrives at 1.69A$ target…In a nutshell: The story is still very good…but I had certainly hoped for a more definite agreement!
Perseus - completes a scoping study for a potential, Yaoure underground development. A preliminary , inferred underground resource of 600.000oz at 6,2g has been estimated, which is quite meaningful. But production from this resource will be starting only years after the open pit has started production…something like 2026. In terms of today´s valuation, this is not all that meaningful, but positive.
Have a nice evening
WS
WS
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