Market Update

General - Kingsgate

Good afternoon

the balance sheet repair of the resources industry Santos raised 1.5 bill A$ in a placement + SPP, and Stanmore Coal raised 15 mill A$ to be on the saver side of a tight cash balance in weather-sensitive area.

Chinese credit growth was stronger than expected and will ensure, that growth can continue at around current levels for the next few month at least. The last set of economic numbers has been very positive - it will be seen relatively early in the year, whether Trump will play hard ball or whether we can continue with business as usual. I am sure, that Apple will push very hard for "normal" trade relations with China at today´s meeting of Silicon Valley with Trump!

Trump has now filled all important roles in his government...I have to admit, that in a way, I quite like his refreshing hands-on approach to things. But I am still worried, when it comes to potential erratic foreign policy, and I am very worried about the outlook for the enviroment. Not very probable, that his Texas-boys will be looking after the quality of life of my children and ( potential ) grandchildren!

Strong producer prices in the States today....but all eyes are on the FED, which is almost 100% certain to increase rates - but I guess, alonside some pretty dovish commentary?? Strong bond markets today are telling this, at least!

Base metal prices have been in positive territory all day today - and for a change, it looks like the US is not selling them down.

Kingsgate - the Thai government has clarified it´s instructions, and while they will meet with the company next week, it is now as certain as it gets in Thailand ( that means 90%? ), that Chatree will be closed at the end of this month, after operating for 14 years, I think! Most of us have made good money with Kingsgate over the years - but the last few years have been very disappointing. I think the sometimes very blunt and harsh comments of the Chairman have not helped Thai relations - but it´s very hard to look after the curtain here. In any case - it´s now up to negotiations, and potentially international courts, to decide, whether KCN will get compensation for the asset. The only relief for shareholders: there is basically zero compensation seen in today´s shareprice!

Have a nice evening


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