Bulls N' Bears (Commercial Content)

Global markets continued to rally on Friday night, following yellen’s move to leave interest rates on hold for an extended period. We attended the Grand Prix on Saturday and although it certainly is a boost to the economy, we are glad it is over… This week, we have the chairman of Bega Cheese coming for a PEAKTV interview…. So keep an eye for this… happy Monday…

In a supreme show of faith in ASX listed Analytica’s urinary incontinence medical device technology, its Chairman Dr Michael Monsour has agreed to take a $1m placement at a price nearly 18 percent higher than that offered to the general shareholder base and a new cornerstone investor who has also committed to a $500k placement. 

Global markets rallied last night, as the USD continued to fall and commodities rebounded. Emerging Markets rallied and Crude Oil hit $41.00/barrel, a level not seen for over 6 months… But is this just the beginning? Combined with a strong Feb Business Survey, we could now see a sustained rally back towards 5,500 level…. Happy Friday…

There’s an old saying in the exploration business - “If you want to hunt for elephants you need to go to elephant country." That message certainly hasn’t been lost on Sipa Resources who have just muscled into well known elephant country in the Pilbara that hosts the 10m ounce Telfer Gold mine and the 30 000 tonne a year Nifty Copper mine. Sipa will spend $3m to earn 80%.

Good morning… Finally, Janet Yellen listens to us, sits on her hands and advises the market that US interest rates will only rise twice this year. Commodities Rally. USD Falls. Global Markets Jump… The only uncertainty now is what impact a Donald Trump presidential win would have on the AUS-US relationship… only time will tell…

A major part of Stargroup’s plan is about to come to fruition with the appointment of 20 agents nationwide who will resell their EFTPOS and PAYWAVE offering to businesses around the country.They are aiming to place 30 EFTPOS terminals a month into businesses up until July and 100 a month thereafter as their network of agents grows to over 100 by midyear. 

Blackham Resources haven’t wasted any time in putting their recent $20m capital raise to good use with the key refurbishment contract at the old Wiluna Gold plant now approved for signing. Blackham’s DFS predicts the project will bank $234m over 7 years which is not bad considering they only dished out around $6m to buy it and $32m to refurbish the plant. 

Burleson Energy acquisition Sky and Space Global have pre-sold 100% of the telecommunications bandwidth from their first constellation of “nano-satellites” to be launched in 2017. The company says that just 100 units should provide revenues of between $300m and $500m per annum and produce up to 1 000 000 000  minutes of voice, messaging and data air time a year.

Just when we thought that global markets are starting to stabilise, Citigroup has to come out and ruin the party… US Stocks held up well overnight, even with Citigroup’s remarks… But is the recent rally unjustified? It all comes down to the US dollar…

Blackham Resources has added another 40 000 ounces of gold to its resource and another $20m to its bank account after a successful drilling campaign followed by an equally successful oversubscribed capital raise. The headline result from the campaign was 11.5m @ 5.08 grams per tonne gold which included a 7m intersection grading 7.01 grams per tonne gold.

Hammer Resources and heavyweight partner Newmont are currently processing and modelling geophysical data gleaned from the first round of field programs at Hammer’s Mt Isa project. Hammer are also focusing on their own 100% owned tenements including the Scalper prospect that retunred a result of 23 metres at 1.1% Copper and 0.27g/t gold.

Good Morning from Beijing… I have spent the last four days here talking at the AUS-China Investment seminar across four cities with Partners of Hall Chadwick and Thomas Geer. It has been a “surreal” opportunity and after speaking with the locals about the economy, government policies and eating lots of local Chinese food, I can comfortably tell you that growth in China is definitely slowing…. But there is more to it…..

Respected Florida based US research house Redchip, has re-rated ASX listed cancer drug hopeful Pharmaust at 35c a share, almost triple its current share price. The total Net Present Value calculated by Redchip for Pharmaust out to 2030 is $56.5m, considerably higher than Pharmaust’s current market cap that hovers between $10m and around $12m.

West Perth based Drake Resources has made the popular leap from mining to technology with the acquisition of Israeli based cyber security firm Genome Technologies that boasts a unique proprietary algorithm that “profiles” client company employees in order to assess their cyber security risk. The deal is worth around $11m and Drake says the cyber security market will grow to $177b in 5 years.

ASX listed Philippines high grade gold explorer Red Mountain Mining look set to bank $2.65m in the next few weeks after a strong showing in their recent rights issue and the listing of their strategic financing partner on the London Stock Exchange. 

Leading ASX listed Cancer drug specialist Pharmaust, are in discussions with a UK-based clinical oncologist to evaluate their anti-cancer drug known as Monepantel in patients with oesophageal cancer. The trials, which will analyse the effect of Monepantel on patient’s tumours are designed to provide short term feedback on the efficacy of the drug.

Former oil and gas turned space technology company Burleson Energy has achieved a major milestone in its relatively short time in the space technology business. This week its recent acquisition target Sky and Space Global, signed a binding contract with respected Danish nano-satellite manufacturer GomSpace to commence building 3 trial nano-satellites.

Yesterday’s 25% drop in Chinese export numbers really questioned the recent commodities price hike. BHP and RIO fell by 8.5% and 9.4% in London and Crude Oil weakened 3.4%, as uncertainty relating to supply cuts, hits the market. But is the recent 18% rally in iron ore simply a “blip”? Yes… for now…. 

Despite encountering drilling difficulties that resulted in the abandonment of two holes at their Rockford project in the Fraser Range, Legend Mining says it gained a valuable insight into the geology in the area. Legend says it is able to confirm the presence of “Fraser Zone” rocks highlighting the prospectively of Area D for Nickel and Copper mineralisation.

West Perth based junior mining hopeful Blina Minerals has kicked off a round of auger drilling as part of its due diligence program at the Ande’s project in Colombia.The Ande’s project is sublimely located in the heart of the famed Middle Cauca gold belt in Colombia that is practically overrun by multi-million ounce gold mines on its door step in all directions. 

Consummate deal maker Neometals is at it again, this time with ASX listed junior and 20% partner in its WA nickel assets, Hannans Reward. In a complex series of deals, Neometals will divest its nickel assets in Forrestonia , whilst at the same time emerging as Hannan’s major shareholder with around 40% of its shares and a 13.5% stake in an overseas Lithium play.

2015 was the world’s worst year on record for unprovoked shark attacks according to The International Shark Attack File.This statistic has prompted Perth based Shark Mitigation Systems to float (SMS) its much talked about business on the ASX with the company prospectus now on the streets. SMS will raise $4m at 20c a share in a traditional IP

Austral Gold have agreed to purchase 51% of Troy Resources’ marginal Argentine gold/silver mine, Casposo, for USD $3m. Austral are obliged to free carry Troy in a USD $10m capital works program designed to re-engineer the plant after it fell victim to the impact of high inflation and capital controls in Argentina coupled with a falling US dollar gold price. 

The current correlation between crude oil and US stocks is ~91%, according to Bloomberg. This means that as oil moves higher, global stocks “should” rally… but what is the correlation between US stocks and inflation? The week that was….

It was a very good day yesterday for global markets as risk was certainly “back on” with a vengeance… commodities and banks led the rally, as AUS GDP surprised to the upside… the question to be asked is whether this trend will continue?

Perth based Triton Minerals have indicated they will focus on getting their Ancuabe prospect in Mozambique into early stage high grade production this year. The company says that 72% of flakes discovered at Ancuabe are greater than 300 microns in size and that 43% are greater than 500 microns, at grades of more than 98% Total Graphitic Carbon.

Global markets surged overnight as global central banks are on the verge of adding additional stimulus to the ailing economy. Will the RBA follow suit? Well… interest rates were left on hold yesterday, but it is Wesfarmers that is worried about competition…

Burleson Energy has cleared the decks of their historic oil and gas assets in the USA to focus on their exciting new nano-satellite play out of Israel. Wholly owned Burleson subsidiary Burleson Energy General LLC has entered into an agreement with AKG Energy L.P for the sale of its oil and gas assets located in the United States for a cash consideration of AUD$43,500.

Perth based Terrain Minerals continue to prove up interesting high grade gold results at their Monet prospect within the Rembrandt project just out of Menzies in WA.Results include 2m @ 12.91 g/t gold from just 10m below surface including a 1m intersection grading 24.3 grams per tonne gold. 

Global stocks were hit once again in February, however, today is the 1st of March and we are coming out with a new outlook. The RBA will join other central banks and will cut interest rates today. This will provide “much-needed” stimulus for local growth… read more… 

Troy Resources have achieved commercial production at their $133m Karouni gold plant in Guyana, a small English speaking country on the north Atlantic coast of South America. The company says its Karouni plant is now self funding just 8 weeks after pouring its first 4.7kg gold bar. They are aiming for production of 80 000 tonnes a month from this month.

Good Morning,Happy Leap Day…  Yes, it only happens one in four years and apparently women can propose on a leap year?