Good Morning, this Monday was harder to come by than normal
due to travelling and holidays. The idleness known as late nights and late
mornings was a shock to the system.
The predictable happened last week and over the weekend for
Chinese Iron Ore Futures that were in decline, with near 5% drop (net) on prices.
There's now a modest over supply in the market coupled with a significant
contraction in financing as Banks and Lenders rush to check on their supplies.
One would have assumed China would create a database for the lending/bonded
lending that occurs, to avoid such calamities as multiple lending on the same
ore. The current system bodes well for those wishing to abuse the market via
leverage.
Reuters et al would have you believe that its the larger
mills in China and traders taking advantage of the price increases and flipping
their stock for a quick profit. There's no support for the supply due to
restrictions in financing that were not in place and the Mills 'have to'
improve their balance sheets. Ironically, it's had a knock on to food prices
will follow as liquidity contracts which bodes well for Soya shorts, also aided
with the defaults by major Chinese importers there's "some cheap Soya
hitting the national Markets Delboy." With Argentina having a
bumper harvest and the debt issues, I don't see much in the way of controlled
selling into the Market as farmers have more surplus than what they trade in
their own country, significantly more.
It makes me wonder why Anglo are even bothering to buy Quartzhill off
Jubilee Platinum (Quarterly
Ops & Finance Update). Reading through the update today Anglo American Platinum Limited interim results 2014. “Anglo American will report an underlying
loss in respect of Anglo American Platinum Limited of $1 million for the six
months ended 30 June 2014, which takes into account certain adjustments.”
Does anyone want the keys? Jubilee appears to be benefitting more from the
Eskom Power issues than Platinum, is there a name change in the offing? Jubilee
Energy? With Smelters for hire?
Limited time so cannot discuss the Stratex International (STI)
acquisition or the implications for GRL (Goldstone Resources Limited) Strategic
Investment in West African Gold Explorer. Disappointment for Tullow (drilling and tax) and Ithaca's impact of Tullow's duster!
Atb Fraser
Fraser- Hi- have fun in France. We seem to be heading to La Rochelle in 9/14 but we generally prefer Italy, with the main reason being the locals.
ReplyDeleteRe AAL- its clear that the main strike is over now, after 20 plus weeks, but haven't the largest miners union, the NUM have now plans to strike as they are now worse off v. the settled miners deal. Im not sure of this will settle quickly but it will clearly add to costs and the main platinum mines in SA aren't making much money for their owners in any case. Ive got some platinum and palladium exposure via a fund (via Sprott P&P) as I don't like the mining angle for those metals.
Cricket back on now, so back to biting nails.... :-))
Cheers. The Leggie