Plus, demand for WA gold underpins warm reception for First AU float
Orion Minerals’ counter-cyclical gamble on the abandoned Prieska zinc-copper mine in South Africa’s remote Northern Cape province back in 2015 has come up trumps on three fronts – a new resource confirmation, bumper metal prices, and dare we say it, the rise to power of a more mining friendly president in Cyril Ramaphosa.
Prieska successfully mined more than 47m tonnes of zinc-copper mineralisation from 1971 to 1991 when it was owned by the long-gone AngloVaal. It could have gone on with things if conditions were right to push beyond the original 45 million-tonne mine plan.
Nickel with a 7 in front of its price and oil moving closer to a price with an 8 in front were two highlights in a week dominated by geopolitical events, but there was perhaps a subtler shift underway with mid-tier resources stocks possibly being acquired as yield plays.
Shares in mid-tier gold miner Saracen Mineral Holdings (ASX: SAR) surged after chief executive Raleigh Finlayson labelled the company’s March quarter results as the best in its eight-year history, (reports Stuart McKinnon in The West Australian).
Perth broker Euroz Securities says Mineral Resources’ (ASX: MIN) scrip offer of 3c-a-share equivalent represents a good premium on the recent trading price of Atlas Iron (ASX: AGO), which has been sold off in line with the falling iron ore price and widening low-grade discount.
The directors of Venturex Resources (ASX: VXR) have collectively splashed out more than $140,000 to buy shares on market in the Pilbara copper-zinc developer, hot on the heels of new MD Ajanth (“AJ”) Saverimutto joining the company.
The economic outlook in Germany is deteriorating with alarming speed and any mistake by policy-makers could push the country into a full-blown slump, a leading economic institute has warned (reports Ambrose Evans-Pritchard in London’s Daily Telegraph).
“The danger of recession has increased markedly. It is a notably more critical picture than a month ago,” said the Macroeconomic Policy Institute (IMK) in Düsseldorf.
Veteran mining executive and Pilbara Minerals (ASX: PLS) founder Neil Biddle has continued to back his new gold play, Spitfire Materials (ASX: SPI) with some further on-market purchases earlier this month.