We are at the 121 Mining Financial investment conference today apologies for brief early morning note
bull; Investors are invited to go to the inaugural 121 Mining Financial investment conference at 155 Bishopsgate
bull; SP Angel are founding sponsors
Kindly elect SP Angel in the Extel 2015 survey
Metals amp; Mining analysts: John Meyer, Carole Ferguson, Simon Beardsmore and Sergey Raevskiy
Sales: Richard Parlons, Bonnie Hughes. Click on: www.extelsurveys.com/quickvote
United States Core inflation came in line with expectations in Mar climbing up 0.2 % mom/1.8 % yoy.
bull; CPI including oil rates change slipped below 0 in Mar hovering around 0.0 mark considering that the beginning of the year.
China The mainreserve bank cut the reserve requirement by 1pp to 18.5 % on Sunday.
bull; This marks the second reduction this year.
bull; 1pp cut is estimated to translate into a boost in new lending of c. CNY1.2 tn (US$ 194bn).
bull; Despite the statement, Chinese stocks are were today following the regulatory authorities decision on Friday to cut leveraged trading and expand brief selling.
Greece Greek banks may soon lose collateral to access the ECB refinancing programme unless Athens reach a contract with the EU and IMF on financial reforms, according to Banque de France Guv.
bull; Comments put pressure on the Greek government to negotiate an offera handle its international lenders.
US$ 1.0773/ eur vs 1.0819/ eur the other day Yen 118.73/$ vs 118.82/$. SAr 12.034/$ vs 11.964/$. $1.494/ gbp vs 1.500/ gbp
A$ 0.781 aud/usd vs 0.776 aud/usd United States dollar weakens on recentlies bad financial information.
Gold US$ 1,207/ oz vs US$ 1,204/ oz the other day
Platinum US$ 1,171/ oz vs US$ 1,165/ oz
Palladium US$ 783/oz vs US$ 782/oz
Silver US$ 16.33/ oz vs US$ 16.44/ oz
Copper US$ 6,082/ t vs US$ 6,134/ t Anglo American is in progress of offering parts of its Norte and Sur units in Chile.
Aluminium US$ 1,833/ t vs US$ 1,839/ t –
Nickel US$ 12,530/ t vs US$ 12,775/ t Workers go on strike at the Ambatovy ickel/cobalt plant operated by Sherritt in Madagascar only a month after a brief similar action reported at the operation.
Zinc US$ 2,217/ t vs US$ 2,242/ t
Lead US$ 2,042/ t vs US$ 2,042/ t
Tin US$ 14,900/ t vs US$ 14,775/ t – Tin association in Indonesia said its members will certainly stop sales of the metal at rates listed below US$ 17,000/ t in an effort to stop a sharp sell.
Oil US$ 64.0/ bbl unch vs US$ 63.2/ bbl Chinas unrefined oil imports up 7.5 % in Q1. Reckon China will certainly be constructing new storage capacity as fast as it can
Gas US$ 2.585/ mmbtu vs US$ 2.584/ mmbtu
Uranium US$ 38.90/ lb unch vs US$ 39.00/ lb
Iron ore spot rate index (62 % fines Tianjin) $49.60/ t vs $48.60/ t Rio Tinto to continue with low cost iron ore growth in Pilbara despite falling iron ore costs, CEO Sam Walsh said in London this week.
Thermal Coal (CFR European ARA cost) $57.40/ t vs $57.20/ t. Coking coal $108.5/ t vs $108.5/ t
Speciality metals and alloys:
Tungsten APT European US$ 252.5/ mtu unch vs US$ 257.5/ mtu last week
Kefi Minerals * (LON: KEFI) 1.08 p, Mkt Cap pound; 14.2 m DFS progress for bank finance
bull; Kefi Minerals reveals it is making good progress towards the conclusion of its Conclusive Feasibility Research study in accordance with the requirements of bank and job funding.
bull; Snowden Mining experts have actually independently confirmed the mine plan and costs for the upgraded mineral resource and revised mine plan.
bull; The consultants have validated the semi-selective mine design as part of the research.
bull; Confirmed mine plan:
bull; Throughput 1.2 mtpa, to provide a total of 12.0 mt ore mined over 11 years
bull; Grade of 2.52 g/t at mine head with a waste: ore ratio of c. 10:1
bull; Gold production 86,000 ozpa to overall 960,000 oz ounces over 13 years consisting of the addition of a more two years of processing of low grade stockpile
bull; The experts have upgraded cost forecasts to reflect the upgraded mine plan and are to be additional improved as part of the 2015 DFS.
bull; Money costs $634/oz omitting royalty and $721/oz including royalty.
bull; AISC costs $906/oz consisting of initial investment and $768/oz leaving out preliminary investment
bull; Milestones for conclusion of 2015 DFS
publication of upgraded Ore Reserves
arrangement of last proposals by short-listed mining professionals
finalisation of value-engineering to lower the expense of procedure plant, including due diligence on available existing processing plants
review of the 2015 DFS by the job financiers independent technical professional
bull; Capex: cut to $120m inc contingency funds from $150m by making use ofusing specialist mining and presuming a 10 % saving on all new plant
bull; Financing: Kefi anticipate to raise c. $100m of senior secured finance and c. $20m in other financial obligation or finance
Conclusion: Kefi is fast moving in the direction of the conclusion of its DFS, funding and the beginning of mine property development. We expect the company to begin to break ground this year with very first gold production next year.
* SP Angel serve as Wanderer to Kefi Minerals. An SP Angel expert has actually visited the Tulu Kapi mine site with Kefi Minerals.
Noricum Gold * (LON: NMG) 0.2 p, Mkt Cap pound; 2.8 m Expedition starts at Walchem mine
(Walchen 100 % ownership)
bull; Noricum Gold have begun expedition at the historical Walchem mine in Austria which was closed in 1942.
bull; Walchem was last mined in 1942 producing average grades of:
o Copper 1.71 %
o Zinc 3.23 %
o Lead 2.48 %
o Silver 83g/t
o Gold 0.5 g/t Au.
bull; The polymetallic ore may likewise contain nickel and cobalt.
bull; The ore zones appear to consist of two major ore horizons with horizontal extension of 3-4km each having a thickness of 0.5-4m.
bull; Noricums press release includes a map revealing substantial underground operations at the Walchem mine along with images of outcropping ore and one of the adits for entry into the underground workings
Conclusion: Noricum have been fortunate to obtain the Walchem mine. The ore grade looks highly important at the grades revealed above and access to historical records and the old mine operations ought to make it possible for Noricum to produce expedition outcomes and assess the mine fairly swiftly. The mine has extensive operations and really excellent capacity to produce a financial resource.
* SP Angel acts as Nomad and Broker to Noricum. An SP Angel analyst has visited the Schonberg site in Austria.