Far East Capital Newsletter
De Grey is building a gold play in the Pilbara
12 May 2019

In This Issue

De Grey is building a gold play in the Pilbara

We continue to receive mixed signals in the markets that deny us the ability to see what direction they should be going; up or down. Global manufacturing PMI is the weakest it has been for three years, largely because of stagnation in Europe, but the USA has been reporting much better figures. The Chinese trade balance has been below estimates in line with weakening global demand and the impact of the trade war with the USA. Friday’s announcement of 25% tariffs on US$200bn worth of Chinese imports will keep this topic in the headlines.

While the US markets seems to be going sideways albeit with them nudging new highs on occasions, they continue to be vulnerable when Trump decides to Twitter his views. He provides traders with an opportunity to slam the market like it did last week, providing the volatility that is needed to generate trading profits in an otherwise stable market.

De Grey is working on a PFS for a 2 Mtpa project that could produce in the order of 100,000 oz p.a. for a minimum life of seven years. It will probably take another six months of work to determine whether this is indeed the optimal scale, with positive input from the drilling programs being essential. There are many moving parts here that will become more certain as the year progresses. There is an interesting opportunity here. We just don’t yet have full vision. 

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