5/30/2023 0 Comments Antimony stock![]() ![]() The company announced a capital raising of $16 million at 58 cents per share last week which took about as long as I took to respond to the St Regis waiter when he asked me “excuse me sir would you like some more?” Not often I mention a stock twice in one month, however I couldn’t help noticing the recent announcement of Southern Cross Gold (ASX: SXG) (figure 3) whose gold-antimony project appears to be growing by the hour. New ideas: an update on SXG Figure 3: SXG 12 month price chart (Source: CMC Markets, 24 November 2022).Īs I am withdrawing from a weeklong champagne addiction I thought it safer to have a brief recap on one of my recent picks rather than roll the dice on something new. Their conclusion is that the next 3-6 months should see the bottom of the metals cycle. Figure 2: S&P/TSX Global base metals index 5-year chart (Source: On the base metal front, they see a reversal in the USD Index as an important turning point which has seen strengthening in the metals market, notwithstanding there is a significant risk as demand from Europe/US is likely to slow further and impacts of China reopening are unlikely to provide significant support to physical markets until 2H23. Figure 1: Five-year gold price forecast (Source: UBS, Australian Resources, Gold, ). With anaemic global growth in the range of around 2% next year, UBS can foresee a switch into gold, particularly in a falling USD environment. The reasoning was based around: (1) their observation that longer term investors (particularly central banks) were starting to accumulate gold, 2) the proportion of gold holdings relative to overall assets held by institutional investors remains at low levels and (3) important physical gold markets such as India and China have maintained a strong presence in the gold market this year. ![]() Speaking of commodities, UBS are getting a little more bullish on gold (figure 1) and are now expecting the Federal Reserve to cut rates from 5% to 3.25% by the end of CY 2023 with major gold miner earnings forecast to rise by over 25% for gold producers with NPVs rising 9-18%. My recommendation was to go long oil and short camels… King Salaman of Saudi Arabia had booked the entire hotel out for the week during the G20 and called me in for some advice just prior to his departure on 16 November. I have been suffering from Cristalitis, a rare condition that afflicts people as they withdraw from drinking Cristal Champagne, which I was consuming in ample qualities at the St Regis Hotel in Bali earlier this week. I am going to have to apologise for the lateness of this week’s column. Former geologist and experienced stockbroker Guy Le Page, director, and responsible executive at Perth-based financial services provider RM Corporate Finance, shares his high conviction views on the market and his “hot stocks to watch”. ‘Guy on Rocks’ is a Stockhead series looking at the significant happenings of the resources market each week.
0 Comments
Leave a Reply. |