Weekend Rundown 14/09/19

GOLD

The Gold spot price has had its worst week since March this year ending the week down 1.09% finishing the week under the USD $1500 at $1488.58. The Gold price movements can be heavily linked to the US/China trade war and this week there has been talks of a possible postponement of tariffs.

SILVER

When Gold goes up or down so does Silver, but even harder and faster. So this week as Gold price declines, the trend follows and Silver ends the week down 3.64% at $USD 17.43.

IRON ORE

A shining light of the commodity front this week was Iron ore, ending the week up 5.8% at $USD 94.77. Even though many analysts expect the spot price to drop to around $USD 70 in the next two years the price is still holding strong above $USD 90.

Alkane Resources (ALK.ASX) $301 MILLION MARKET CAP

On Monday morning ALK came out with some pretty impressive drill results, by the end of trading on Monday ALK was up 27% at $0.49. ALK continued to surge higher throughout the week, ending the trading session on Friday up 55%. 

When major systems are recognised, it is always interesting to look at companies with land adjoining. Below shows which companies could benefit from this new system. 

 Image (@GlenGoulds)

On the back of ALK’s announcement, Magmatic Resources (MAG.ASX) ended the day up 127% at $0.041 and Alice Queen (AQX.ASX) ended the day up 25% at $0.02.

MAG also continued to surge higher during the week, ending Friday’s session up 150% for the week.

Syrah Resources (SYR.ASX) $212 MILLION MARKET CAP

On Tuesday SYR came out of a trading halt with an announcement regarding the current natural flake graphite market and it’s planned near term operational response. According to SYR, the sudden material decrease in spot natural flake graphite prices in China is driven primarily by the depreciation of Chinese Yuan and Chinese inventory level. Concerns have impacted price negotiations and contract renewals, with potential for further weakening of prices into Q4 2019.

China, the world’s largest consumer and producer of natural graphite, transitioned to a net importer of graphite products in January 2019 (ahead of Syrah’s expectations). In the first 6 months of 2019, China imported 105kt(1) of graphite, of which 75% was from Syrah, primarily consumed in the battery supply chain. Despite this, recent developments have impacted the graphite market.

Due to this news, the companies’ share price took a drive and ended the day down 33% at $0.047. The company managed to gain a little back by the end of the week but still ended the week down 27.38%

CARAWINE RESOURCES (CWX.ASX) $9.21 MILLION MARKET CAP

CWX flew under the radar this week releasing some pretty amazing drill results from their 100% owned Jamieson Project in northeast Victoria. New geochemical evidence for a copper-gold porphyry source of mineralization at its Hill 800 deposit has been found. The company ended the week up 17.86%

SAINT GEORGE MINING (SGQ.ASX) $81 MILLION MARKET CAP

SGQ has had another strong week, finishing Friday up 7.5% for the past 5 days. This came on the back of strong drill results on Thursday which indicated a 14m thick zone of nickel-copper sulfides down-plunge at the Stricklands Prospect from 78m downhole.

I leave everyone this weekend with an image that best describes why in the last 50 years now is the best time to invest in commodities. Have a great weekend and stay safe. 

Disclaimer: Please do not take any of this information as investment advice, this information is for research purposes only.

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