Market Update

General - RIO - Graphex

Good afternoon

there is just nothing to stop these base metals/ minerals - and again, equities! Strong again in London today, and Steel + iron ore with new highs in China this morning!

J.P.Morgan was the latest investment bank to increase their forecast prices for commodities...after the increases, they are generally going for substantially lower prices than today...iron ore 60 US$ ( vs 80$% today ), coking coal 175 US$ ( vs 290 today ),.copper 2.26 US$/lb vs 2,66 US$ today...etec pp. Nevertheless, they have increased earnings estimates for many companies by 30% or so....There is so much more to come for us!!! These analysts will try to follow reality much the same way as they did between 2003 and 2007! Once they got really bullish, it was all over. We are certainly a very long way from this!

The Australian GDP contracted by 0,5% last Quarter - this was worse than expected, and certainly a one-off number. Most economists are expecting a reasonably strong economy for Australia next year, consensus is 2.8%  - which makes sense!

RIO - if anything, want to increase their exposure to diamonds! That surprised many - some had expected them to divest diamonds...The diamond market has seen a meaningful uptick this year, especially in the better-quality segment of the market.

Graphex Mining - tests resulted in a 99,4% graphite concentrate , just by flotation, which is a very straightforward process. This would make their concentrate a desirable one for spherical graphite producers, for the use in batteries. These results do give GPX added optionality - but their plan is not to go this way, but to produce graphite of very coarse flake size, for the building industry. This product is very much sought after, and is the main reason that the Chinese are planning to finance the project. We should see more definite news of this early in the new year, I think.

Genex - suspended for a capital raising!! Honestly, I did not know anything, when I wrote my note yesterday - otehrwise, I would not have written it! More details tomorrow - stock should come with an announcement before the market opens. Just a remeinder, that recent research valued them at 85ct, with a potential valuation of 1.69 A$/share!

Have a good day!


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