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In the news: Burey Gold & Base Resources

Published: 04:29 23 Jun 2016 EDT

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We will be marketing Klaus Eckhof of Burey Gold†† in London on Monday and Tuesday next week. This will come on the back of the company’s impending announcement of drill results from the Giro Gold Project in the north-eastern DRC. The RC drill results from the Douze Match anomaly are expected any day now; the company is currently in a trading suspension on the ASX due to this. Please let us know if you would like a meeting.
Given today’s In/Out EU Referendum in the UK, I have been fielding a lot of questions. These have mainly concentrated on how this will affect ilmenite, zircon and rutile prices and whether this is the time to buy shares in Base Resources*†. After a lot of high-level statistical analysis, I have come up with the following conclusions. As it will depend on whether you have chosen to Remain or Leave, I have factored both decisions into my research. Here is our guide to today’s possible outcomes.
From the point of view of a Remainer:
The UK votes to Remain in the EU — Boom time, the EU is the single largest trading bloc in the world. The UK economy continues to prosper and attract inward investment. Interest rates remain low and the UK population, supported by a continued inflow of skilled labour, goes on a house buying frenzy. Sales of paint, tiles and other ceramics (including bathroom suites) skyrocket, driving prices of the raw materials through the roof as global supply can’t keep up with the demand.
The UK votes to Leave the EU — Doom time, the UK’s economy collapses and nobody can afford to buy a new house. However, this is excellent news for the DIY industry as families across the UK sit at home and console themselves in a massive decorating frenzy. Sales of paint, tiles and other ceramics (including bathroom suites) skyrocket, driving prices of the raw materials through the roof as global supply can’t keep up with the demand.
From the point of view of a Leaver:
The UK votes to Remain in the EU — Doom time, the UK is locked into a shrinking economic, ‘Soviet-style’ trading bloc. Floods of unskilled immigrants drive wages down even further, and nobody can afford to buy a new house. However, this is excellent news for the DIY industry as families across the UK sit at home and console themselves in a massive decorating frenzy, fuelled by cheap Eastern European decorators. Sales of paint, tiles and other ceramics (including bathroom suites) skyrocket, driving prices of the raw materials through the roof as global supply can’t keep up with the demand.
The UK votes to Leave the EU — Boom time, the UK is the fifth largest global economy and more than able to sign its own trading agreements with the rest of the world, so no worries there. Immigration ceases overnight and all French expatriate bankers are expelled. Wages rise, and as the EU falls apart a wall of money flees Europe (except from France) for the safety of the UK and sterling. The weather improves and the UK people go on a frenzy of house building and DIY. Sales of paint, tiles and other ceramics (including bathroom suites) skyrocket, driving prices of the raw materials through the roof as global supply can’t keep up with the demand.

Thus, it’s no surprise that as sterling and the stock market have declined over uncertainty about the vote, zircon and rutile prices have remained steady. Ilmenite prices have even risen QoQ. Our analysis is clearly spot on.
Tim Carstens of Base Resources will soon be here. We’re marketing him in London on the back of 4QFY16 results on Tuesday 12 July till Friday 15 July.

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