Far East Capital Newsletter
Kingwest gold discovery and an overlooked Canadian graphite company
18 Sep 2021

In This Issue

Kingwest gold discovery and an overlooked Canadian graphite company

Suddenly everyone wants uranium stocks as the Sprott Physical Uranium Trust has pushed the uranium price to a nine year high. It has been a long time coming but the movement in the uranium price from US$30/lb to US$48/lb is reminiscent of the moves that caused a massive boom (or bubble) back in the noughties. Absolute fortunes were made. Maybe it is the memory of this wild period that has stirred up the punters today. So, where is a uranium stock that hasn't yet moved? Believe it or not, West Wits (WWI) has very strong uranium credentials on its licences in South Africa.

Elsewhere, the Chinese have pulled the rug out from under the iron ore price with its cap on steel production due to environmental concerns. Who really believes that? The iron ore price is less than half what it was in July, trading down to US$101 pt yesterday. All those companies that jumped onto the bandwagon with smaller, high cost projects will be getting nervous.

Notwithstanding what is happening at the big end of town with iron ore producers, and the softer gold price, sentiment improved again over the week as evidenced by the Sentiment Oscillator. There is still plenty of gentle optimism across a number of sectors.

Kingwest looks like it may have made a significant gold discovery under Lake Goongarrie in the West. We have stumbled across a Canadian graphite company that looks incredibly cheap by Australian standards - and it has lithium too 

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