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perdant

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02/01/23

08:55

Post #: 65497195
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Originally posted by jdpc35: ↑

Did not want to start a new thread for this. BRB was one of two stocks featured in an article in the QLD Courier Mail today (the other being BAT) Below is an excerpt from the article….

Gold the go as pundits fear interest rate ease

TIM BOREHAM
CRITERION

WHILE 2022 was a hot year for battery metals but one to forget for gold, the yellow metal has had a revival of sorts as investors contemplate the prospect of interest rates plateauing – or at least not heading as higher as thought.

Will bullion regain its lustre in earnest in 2023?

Gold has recovered about 10 per cent from its year low of $US1629 ($2445) an ounce in early November but is also 10 per cent adrift of its (record) early March peak of $US2040/oz.

ANZ’s commodities research team reckons gold is headed to $US1900 an ounce on a “recession scenario”, while the crazybrave folk at Saxo nominate $US3000/oz.The gold bugs argue that if the major economies slow faster than expected, interest rates could even ease. But falling inflation means higher “real” interest rates, which is good as gold for savers but not so good for actual non-income producing gold.

Meanwhile, interest in cryptocurrencies – bravely viewed by many as an alternative store of value to gold – has sagged. The obvious action for ardent gold bugs is to buy a direct exposure such as a gold ETF, physical bullion or leading miners such as Newcrest Mining and Northern Star.

For those with a long-term horizon, the two explorers have both eschewed battery metals in favour of gold – a switcheroo that could prove exquisitely timed.

In a similar vein, Breaker Resources (BRB) was all about lithium but sold its stake in its WA prospect, Manna, to joint venture partner Global Lithium Resources for a cool $88m. That left Breaker to zero in on its Lake Roe Gold Project near Kalgoorlie.

The project has a stated resource of 1.7 million ounces averaging 1.6g/tonne.

A scoping study for an initial underground phase estimates output of 88,000 ounces at an all-in cost of $1390/oz compared with the current spot price of around $2700/ oz. The key project, Bombora is a 1.5-million-ounce resource – 778,000oz indicated.Neighbours include Northern Star Resources’ four million ounce-plus Carosue Dam project and Ramelius Resources’ 1 million ounce-plus Rebecca Gold Project.

Post the Manna sale, Breaker has $80m of cash compared with a market cap of around $100m. The company also has a 1.5 per cent net smelter royalty on any Future Manna output.

”Put us on your watch list,” urges Breaker chief operating officer Sam Smith.

OK – we will.

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“ … In a similar vein, Breaker Resources (BRB) was all about lithium but sold its stake in its WA prospect, Manna, to joint venture partner Global Lithium Resources.”

when we’re we ever all about lithium?

BRB Price at posting: 32.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

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Article, page-47

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