Interesting disconnect between EVN’s thoughts about how the year has started versus the market.
You’d never know we were talking about the same company, as you read through the quarterly.
No call to action, specifically. Junior gold miners are great way to make or lose tonnes of money, unless you are very strong in the space.
We are not, and won’t be buying small cap mining stocks any time soon.
Generally speaking, quarterly production updates everywhere have been pretty terrible. Can’t get staff. Diesel costs a lot. Rain. Costs up, most prices down.
That doesn’t bode terribly well for our NCM, our gold and copper mining exposure. We own BHP, which was likewise mixed, but a) it’s BHP, and b) we are underweight, and we own AWC, which is presently, along with everyone else in the industry, making a very skinny margin, and +/- a few percentage points of production isn’t the main driver.
We wrote a note about SBM just a few days ago, which is background reading if you are interested. I suppose our point here is that it’s looking a bit like oblivion here, if gold weakens further.
Good for everyone else that survives. They are net cash, as of the last result.
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