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Strange numbers, big downside surprise on numbers but wages are rising at an even faster pace that thought? Could be in for a bleak stagflation(ary) winter.

Yep, a shocker!

Up at 1:30pm BST, I get the feeling it's going to be an interesting number this month.

Fabulous article that.

It would also suggest that things at Singida are moving faster than the original first gold production projections as the end of 2022.

It’s becoming abundantly clear that that growth will not be what markets thought it would be a few months ago. Far from tapering and interest rate rises, just the opposite will become clear in the autumn and winter.

https://www.kitco.com/commentaries/2020-11-27/Highest-grade-underground-gold-mines-in-Q1-2020.html

Interesting to see what WK could be being compared to in the 10g/t+ mine category (if it is proved that’s what it is). Illustrious company.

What I find interesting is how little press EZ has done off the back of these grades! Usually he would be out talking about the latest drill results, these are huge grades that they buried at the bottom of the RNS Table with zero location or depths (granted to protect the location from tin-panners), with no context of any kind. That can be construed two ways I guess, they think it could be an anomaly never to be repeated or they think they’ve found something really special.

If follow up drills find similar numbers in great quantities who knows what we could be talking.

Wants in here, SP tightening up well.

Seems to be a “goldilocks” number for AUX, inflation still running hot, but not “too” hot to enact a snap reaction from the US Federal Reserve and the fear tapering or interest rates going up (whatever you think of that analysis) .

Still think we are going to have higher numbers in due course when rents (which are on a lag) feed into the numbers on US house prices which are up 20% year on year, today’s numbers saw no rent price pressure, which can’t possibly last with US house prices surging.

Lot’s of unknowns, the JOLTS jobs numbers showed there was more job openings than people to fill them on Monday, that will continue to feed into the labour market wage inflation over the Autumn and if China’s Covid battle goes south prepare for real inflationary pressures out of China’s factory gates in due course with lockdowns.

Who knows what you find in a highly prospective area when you spend and allocate real resources to finding what is there with WK.

This is in the same postcode as Geita, and with those grades now coming out of the ground it could very well be another Geita, of course, I would agree with consensus, you’d need a major to step in to start talking these kind of projects, it didn’t do Greatland Gold any harm…

BTW US Inflation numbers up at 1:30pm.

What a write up that is!

US Yields and USD jumped off the back of the NFP Data and as always allows them to hammer the life out of AUX.

Data in the NFP shows that US Wages are running hot, with rents now feeding into the data we could see a bump up to close to 6% on the headline inflation number in the US on Wednesday IMO, of course, I don’t immediately expect that to help out AUX as the market is ignoring all inflation data because the Fed is telling them too…

Heading towards stagflation? A poor ADP jobs report, interesting to see what the NFP on Friday says.

US Long dated treasury yields could also be heading seriously lower if China’s zero policy goes tits up!

…on the cards, cheap debt with zero governance now going parabolic in the US.

https://www.cnbc.com/2021/08/03/household-debt-jumps-by-the-most-in-14-years-to-nearly-15-trillion-in-the-second-quarter.html

This is why inflation will burn while the US federal Reserve sit on their hands, interest rates can’t meaningfully go anywhere, the resulting crash would be worse than 2007.

Likewise, have been grabbing a good few shares here (for me anyway) and once we get through our “ore issues” this WILL likely trend much higher in anticipation of better results and WK should prove to be our company maker IMHO as the results and resources filter in.

Consolidation day in SP and AUX after yesterday’s run up which is always healthy.

I put yesterday’s news in the “**** happens” category of miners, it goes with the territory of investing in a miner, 2023 – onwards looks very good here and that is why I am invested. No debt and plenty of cash on the books it will get through it’s problems and into cleaner ore / lower costs and the Tanzanian Government paying back the VAT is now a huge positive, all that money will go to speed Singida up.

The only real criticism would be getting bad news out faster, but sometimes human nature takes over I guess. Someone clearly knew what was going on and the SP was clearly shaped up for a massive fall yesterday when that news broke.

On the AUX side it looks set to be an autumn / winter of covid, inflation and deficit busting budgets.

US Producer Prices (Core and Non-Core) just posted some very large gains and way above estimates (again), all points to inflation continuing to rip along northwards through summer, at least. Note also Chairman J.Powell’s comments on the Fed not even being close to letting up on current policy…

Just announced, way past the estimates, 10 and 30 year T-Bills continue to do nothing, they keep lapping up the “transitory” theme fed to them by the US Federal Reserve, the US Federal Reserve say it’s nothing to worry about, we will probably see 8% on the headline (PPI) before the end of Summer / beginning of Autumn IMO factoring in fuel, housing and wage rises not yet in the numbers, of course the US Federal Reserve has never actually defined what “transitory” means so this may last years and the market keeps buying US 10 and 30 year T-Bills that are 3 / 4% in the tank before you have kicked a ball, go figure, you do wonder if this zombie market ever wakes up and realises it is giving the US Federal Government 3 / 4% of their own money per annum based on a negative real yield?

https://tradingeconomics.com/united-states/calendar

The sheer belief that markets have in the US Federal Reserve to propagate a never ending up run in asset values has approached evangelical proportions.

20% annual increase in house prices? No problem, the Fed has our backs. NASDAQ at ludicrous valuations? Done. Inflation heading to generational highs? The Fed says it’s transitory so let’s hammer 10 and 30 year bond yields. It all has to end one day of course and we are all gubbed to one degree or another when it does.