Market Update

General - Beadell Resources

Good afternoon

The CPI ex Food and Energy has seen the largest increase in years - not sure, whether this is a good thing, or a bad! Rising Inflation at a time of a strong US$, and when growth is not strong at all - perhaps it finally comes back? I doubt it, but this number has definitely been much stronger than expected.

Metals are having another reasonable day, as has Gold - while equities are seeing some profit-taking at the end of a strong week.

 SPDR Gold Holdings are ending the week on a stronger note, and gold´s consolidation of recent gains is continuing, with a small upward bias. It continues to have a strong feel about it....More talk about "more" negative interest rates around the world is certainly helping!

The POM´s are Sparring with the erst of Europe about a new deal for Britain to stay in the EU...what a joke...Europe or no Europe? This is helping the slight, recent weakness of the Euro, further underligning, that gold is strong for other ( better ) reasons than just currencies.

Once again, not that much ro Report from our universe of stocks today.

Beadell Resources - announced a placement today...very disappointing...even though I can understand, where they are coming from. The Balance sheet has been softish, and cash at bank of 23 mill AS$ has not been fantastic. But the Company had just announced strong guidance, certainly on the cost side, which should lead to seome very good cash generation this year. Raising 40-50 mill A$, reportedly at 0,195 A$, is a bit opportunistic in my opinion - and the price is also disappointing, having in mind, that over the last 2 days, 50 mill shares or so have been traded at 23-24-25ct.....

In any case, risk-adverse Investors will like this, and the stock is so cheap, that I am a happy holder. Even including the dilutive Placement, we should easily see 30ct in the stock shortly, I hope. BDR Management have made clear, that they want to accelerate exploration - which I Support - and indicated, that some debt might be paid back...Sounds to me like they want to buy something ??? We will find out -in any case, the new management seems to be very agressive. Not really my cup of tea - but stock remains undervalued, and I remain a shareholder!

Have a nice weekend