Argonaut | The Natural Choice in Resources

The Dow Jones Industrial Average gained 60 points Wednesday, following a 5-day losing streak. On Wednesday, major benchmarks opened higher but turned sharply lower in afternoon trading. Nine of the 11 sectors in the S&P 500 slumped, while the utilities and telecommunications—two areas generally considered safety plays because of their hefty dividends--climbed. The blue-chip index was down 1.8% in the last hour of trading, on track for its longest losing streak since March 2017, when the market fell for eight straight days. Overnight, the S&P 500 gained 0.2% and the Nasdaq Composite fell 1.7%. Despite a relatively strong start to the earnings season, even companies that have topped expectations haven't been rewarded at the same pace as in recent quarters, and some analysts have warned solid results may already be priced into the market. The US gold price fell overnight by 0.1% to finish at 1,322.60 US$/oz.

Western Areas (WSA) released March Q results producing 4.8kt nickel in concentrate, below Argonaut’s forecast of 5.5kt. Mill production was impacted by lower feed grades, which were down ~3% Q-on-Q. Cash and receivables increased by $5m to $154m at 31 March, benefiting from an 8% increase in nickel prices. WSA announced the completion of commissioning of the Mill Recovery Enhancement Project (MREP) this week which should lift overall plant recoveries by 3-5%. This project opens up new opportunities for WSA including nickel sulphate production for the expanding battery market, exploitation of lower quality resources (i.e. New Morning) and licencing the technology to third parties.

Argonaut advised 88 Energy Limited (ASX: 88E) (“88E”) on the refinancing of its outstanding loan of US$16.5 million with Bank of America.
Whilst the commercial terms of the agreement remain confidential, the transaction was completed on substantially similar terms to the original loan agreement.