Gold: A new record high is expected01 Jun 2020 14:42
Gold: A new record high is expected – Credit Suisse
Gold has completed a small bull triangle for a resumption of its core uptrend, although poor momentum and consensus positioning lends a note of caution. Big picture though, analysts at Credit Suisse maintain a long-held view from June last year for an eventual move to a new record high above $1921.
“Gold has completed a small bullish ‘triangle’ continuation pattern above the $1747 high and although we have concerns with respect to momentum and consensus positioning, we look for the bull trend to resume for a test of $1796/1803 next. We look for this to then cap for a fresh consolidation phase.”
“Big picture, we continue to eventually look for new highs above $1921, with resistance then seen next at $2000, then $2075/80.”
“Support at $1660 needs to hold to keep the immediate risk higher.”
RE: To top slice or not to top slice, to me there is no question31 May 2020 15:31
Stuart, great post.
Heddles' recent LSE interview was one of those moments that made me revisit my personal strategy.
GH: "They do have a right to acquire 5% at fair market value. If they do that will be a big amount of cash that will come in at that time. That may cover a lot of our costs in terms of upfront capital. We'd be looking to debt finance any amounts that we need. The key is to minimise equity dilution and maximise value for shareholders. I'm sure/optimistic of any debt financing."
"It's probably not appropriate for me to speculate the value of it, but clearly Numis/H&P have done really good work. What I would say it's still early days. 65km worth of drilling already. 80km in the next financial year to come. A lot more step out drilling at depth and along strike. I still feel in some ways we're still at the beginning of a long process. I don't want to start putting numbers on this yet because I think there's still a lot of work to do and a long way to go."
The two sections above are very significant for shareholders.
1. We now know that we could go to production using debt finance, instead of equity dilution.
2. In reference to his own valuation vs Numis/H&P, he said there's still a long way to go (+80km of drilling) and we're still really at the beginning. ie, potentially additional significant upside.
We know Heddle want's to take us to being a £1b company (25p+). I believe he will - and a lot more.
Bring on Scallywag over the summer. I just hope Paddy has the time to add Scallywag to his satellite searching!
This was 2 weeks ago. Let’s see how the next week Or two plays out;
‘ Greatland Gold set for its next rally leading up to next Newcrest Havieron update in the coming weeks IMHO. The buy on rumour sell on facts folk are out. The gold price is flying. My call is #GGP will now creep past all time high to 15. @GreatlandGold @priminvestments’ David Lenigas
Gold M&A back on the agenda as coronavirus restrictions ease
LONDON/TORONTO (Reuters) - A lull in corporate takeover activity among gold miners is expected to end as new coronavirus-linked travel restrictions are lifted in coming months, clearing the way for prospective buyers, industry executives and fund managers said.
Deals this year have been hobbled by lockdown measures to curb the spread of the virus, preventing acquirers from travelling to inspect acquisition targets.
Miners year-to-date have struck 275 transactions worth about $6.9 billion, including net debt, according to data from Refinitiv, down from 329 deals valued around $26.8 billion in the six months to June 2019.
Last year's tally included the closing of multibillion-dollar deals by Barrick (ABX.TO) and Newmont (NEM.N).
"Our industry is considering coronavirus a thing of the past as most countries are easing lockdowns and this should propel M&A activity again," said Ingo Hofmaier, SolGold’s (SOLG.L) executive general manager of project and corporate finance.
"Uncertainty and inability to visit mine sites was clearly not helpful."
Solgold, whose largest shareholder is BHP (BHP.AX), earlier this month struck a financing deal worth up to $150 million with streaming company Franco-Nevada Corp (FNV.TO).
Gold XAU= is trading at its highest since 2013, around $1,700 an ounce, because of its safe-haven appeal.
"We are being shown a lot more deals but with coronavirus, due diligence is tricky if you are not based on the ground and near the site," said Bert Monro, chief executive of West Africa-focused Cora Gold (CORAC.L).
Deals this year largely took shape before the outbreak, executives and bankers said.
In March, Endeavour Mining (EDV.TO) offered C$1 billion ($726.9 million) for Toronto-listed Semafo (SMF.TO). Silvercorp Metals (SVM.TO) this month hiked its bid for Guyana Goldfields (GUY.TO), while China's Shandong Gold Mining (600547.SS) (1787.HK) offered C$230 million ($167.9 million) for struggling TMAC Resources (TMR.TO). SSR Mining (SSRM.TO) also snapped up Alacer Gold (ASR.TO).
"Overall we expect more deals in the mid-cap space as companies compete to become relevant," said David Baker of Baker Steel Capital Managers.