(MENAFN- ProactiveInvestors) Intestinal commodities:
• Cows gall stones currently selling for $23000 per kilo – according to a BBC report
• Ambergris $60000 per kilo
• Gold just around $39000 per kilo – an Indian business man had 12 gold nuggets surgically removed after he swallowed the pieces to avoid customs duty
• White truffles $4300 per kilo
FIFA – Question – If proven will Nike Coca Cola and other sponsors continue to sponsor this corrupt organisation
• Surely it is time Septic Bladder to go
Economic News
US – Jobless claims ticked higher versus forecasts for a decline last week. 4-week average remains at historically low levels.
• Weekly jobless claims: 282k v 275k in the previous week and 270k forecast.
• Auto sales are forecast to show another strong month in May as automakers report their numbers next Tuesday.
• Estimates are for annual sales rate to hit 17.3-17.4m units the highest level this year on Edmunds and J.D.Power numbers. This compares to 16.5m recorded in Apr.
• Economic news due today:
o Q1/15 GDP preliminary (2nd reading) (-0.9%qoq v +0.2%qoq estimated in the Advance release (1st reading)) Q1 PCE (+0.9%qoq unchanged from the previous reading) May Chicago PMI (53.0 v 52.3 in Apr).
China – Chinese equites went through a significant correction yesterday driven following a strong run in the last couple of weeks.
• In addition a number of mainland brokers notified its clients of tightening margin requirments this week.
• Shanghai Composite and Shenzehn Index fell 6.5% and 5.5% respectively.
• This morning markets opened down 4.0% and 4.2% but regained most of losses through the day.
Japan – Industrial production posted a second monthly increase since the start of the year but remained in the red on yoy basis.
• Industrial production: +1.0%mom/-0.1%yoy in Apr v -0.8%mom/-1.7%yoy in Mar.
• YoY negative figure marked the seventh consecutive month that manufacturing has been negative the longest streak since 11 months of contraction to Jun/13.
• A separate report showed household consumption surprisingly contracted in Apr (-1.3%yoy v +3.0%yoy forecast) despite being compared to low base.
• Consumption has been in decline for 13 straight months.
Germany – Retail sales beat expectations and hit a six month high in Apr climbing 1.7%mom versus +1.0%mom expected.
Greece – The IMF speculated Greek exit is “a potential” which would not mark the end of the euro.
• Previously the fund offered Greece a three weeks’ delay to the €1.6bn repayment due next month.
• This moves the repayment date for the €300m previously scheduled for Jun 5 further out.
• “It’s very unlikely that we will reach a comprehensive solution in the next few days” Ms Lagarde said.
Mongolia – The government plans to issue US$1bn worth of sovereign bonds following a 84% fall in foreign investment in the economy in 2014.
• The news comes on the back of a resolution reading the expansion of the Oyu Tolgoi mine which might see investors reassessing country risk.
US$1.0962/eur vs 1.0937eur yesterday. Yen 123.82/$ vs 123.91/$. SAr 12.155/$ vs 12.057/$. $1.528/gbp vs 1.533/gbp
0.765/aud vs 0.768/aud
Commodity News
Precious metals:
Gold US$1188/oz vs US$1190/oz last week
Platinum US$1116/oz vs US$1125/oz last week
Palladium US$781/oz vs US$789/oz last week
Silver US$16.71/oz vs US$16.73/oz last week
Base metals:
Copper US$ 6100/t vs US$6114/t last week - Lundin Mining has been served with 16 environmental breaches’ charges by Chilean authorities regarding its Candelaria copper mine.
• “The most important infraction detected by the audits is related to the failure to flfil the commitment of reducing the consumption of fresh water” environmental regulator said.
• Among other charges were irregularities in managing the dispersion of particulate matter and the unauthorised disposal of liquid waste on a beach.
Aluminium US$ 1764/t vs US$1758/t last week
Nickel US$ 12740/t vs US$12905/t last week
Zinc US$ 2218/t vs US$2206/t last week
Lead US$ 1977/t vs US$1962/t last week
Tin US$ 15490/t vs US$15605/t last week
Energy:
Oil US$63.3/bbl vs US$62.6/bbl last week
Natural Gas US$2.715/mmbtu vs US$2.839/mmbtu last week -
Uranium US$35.00/lb sharply unch vs US$35.00/lb last week
Bulk commodities:
Iron ore 62% Fe spot (cfr Tianjin) US$60.2/t vs US$59.7/t – last week
Thermal coal (1st year forward cif ARA) US$57.4/t unch vs US$57.1/t last week
Seaborne hard coking coal index (quarterly) US$109.5/t unch vs US$109.5/t
Other:
Tungsten APT European US$257.5/mtu unch vs US$257.5/mtu
FeCr lumpy Charge 52% Cr US$1.08/lb vs US$1.08/lb last week
Company News
() 5p Mkt Cap £72m (undiluted) – Subscription placing and open offer to raise US$95.1m at 4.75p/s
• have launched their placing and open offer to finance the completion of the refurbishment of the RioTinto copper mine.
• The subscription is for 1.15bn new shares and will be cornerstoned by existing investors: Orion Trafigura and XGC. A new investor Liberty Metals & Mining is also expected to sign as a major investor to make up US$80.1m of investment leaving just US$15m to raise in the placing. The brokers on the deal are expected to raise a further US$10m leaving a further US$5m to come from qualifying shareholders.
• There is also $10m to come from a government subsidy to take the total capital being raised to US$105m.
• A further US$38m is required to complete Phase 1 of the development / refurbishment
• Another US$598m is estimated to expand the mine to 7.5mtpa ore production
• Working capital / contingency is estimated at a further US$9m
• The relatively new ceo Alberto Lavandeira has made good progress with the project and is already well advanced with Phase 1 of the project being 90% complete.
• Behre Dolbear the consultants initially estimated capex at US$199m for a 5mpta mine and plant. The board now estimate costs should fall by US$62m based on forex and targeted cost reductions and that a further US$31m of costs can be deferred. This is likely to relate to equipment financing.
• Having the cornerstone investors has given Alberto confidence in the company’s ability to finance the project and has enabled the team to press ahead and advance development ahead of the major financing.
• Bridge loan: management have used much of a $30m bridge loan facility advanced in December last year to take the project forward. The board have spent $44m
• The financing should allow the company to complete Phase 1 of the mine development for 5mtpa of ore production with potential to rise to 7.5mtpa as an extension to Phase 1.
• Details of the offer are contained in the offering document.
Gold Road Resources () A$0.5c Mkt Cap A$279.7m – Gruyere delivers 44% resource increase to 5.5m ounces of gold – this is one of the world’s bigger gold discoveries in recent years!
• Gold Road Resources has updated its resources estimate on the Gruyere deposit in Western Australia to 5512 koz of gold. The resources are reported in accordance with the JORC (2012) Code and represent a 44% increase on the 3838 koz reported as a maiden resource in 2014.
• The new estimate is based on 96.93mt at an average grade of 1.23 g/t gold and uses a cut-off grade of 0.7 g/t.
• The update is based on an additional 28000 metres of diamond and reverse-circulation drilling completed between October 2014 and May 2015 added to the previous 38000 metres which formed the basis of the earlier resource estimate.
• The increase in contained ounces is almost entirely due to defining additional tonnes as the grades are almost identical at 1.23 g/t in the 2014 estimate compared to 1.24g/t in the latest estimate.
• An additional improvement in the update is that now 62% of the resource is classed as “Measured” (1%) or “Indicated” (61%) with only 38% classified as “Inferred”. In the 2014 estimate almost 60% of the resource was “Inferred”.
• Since discovering the deposit in October 2013 the company has moved quickly to establish a substantial resource. Gold Road Resources has spent A$10.9m so far at Gruyere representing a competitive discovery cost of A$1.98/oz. The deposit remains open at depth and a deep drill hole co-funded by the WA Government is currently underway to test the Gruyere porphyry at 1500m below surface.
• A pre-feasibility study on development of the Gruyere resource is currently underway and is expected to be completed by the end of 2016 and to be reported to the market in early 2016.
Conclusion: Gold Road Resources has delivered a significant increase in both the size and the quality of the Gruyere resource. Drilling is continuing and a further resource update is to be completed during the September 2015 quarter.
Oxus Gold* () 3.25pence Mkt Cap £18.7m – Final results
• Oxus Gold today reports final results for the year ended 31 December 2014.
• Oxus management are not able to report on the arbitration proceedings with the Uzbekistan government incise this breaches and potentially jeopardises its case.
• Arbitration continues against the Republic of Uzbekistan for claims on Amantaytau Goldfields and Kahandiza mining assets
• Sadly the company has not yet been able to secure the release of former employee Mr Said Ashurov who remains in jail in Uzbekistan on what the company considers to be an unjust and improper conviction.
• The company reports a loss of $3.03m vs $4.58m last year.
• Arbitration expenses were $0.48m.
• Total Group Assets fell to $74.98m vs $75.47m last year.
• The company continues with its Arbitration and considers itself to have sufficient funding to continue through this uncertain period.
• A decision was expected on the arbitration was expected by the year-end 2014 and we are hopeful for news on the success of the arbitration sometime soon
*SP Angel act as nomad and broker to Oxus Gold