Market Update

General - Oceana - Foran Mining - Chalice

Good afternoon

everybody is talking about BREXIT...and markets are clearly worried! I wonder, how much the current strength of gold might have to do with BREXIT-fears...Holdings of the gold ETF hit a new, recent high....But I sold some gold yesterday at my gold dealer here in Munich, and they told me, that their business is very quiet in the moment! 

I just cannot believe, that the English voter is so stupid toe xit - but who knows?????? The polls are very close....For England, it would be desaster, in my opinion - but the Euro would definitely crack further, and might actually break up on a BREXIT!! 

German 10-year bond yield is now at 0,024%!!!!

The mad run for lithium- and graphit stocks continued today....Magnis, Volt, Syrah, Altura ( trading at 26ct, following 20 mill$ capital raising + share purchase plan at 20ct! ), all with new highs today....

Copper seems on it´s way to test recent just above 2$/lb....while the erst of the base metals are looking a bit better again...Especially zinc looks like finishing at a fresh 11-month high...It´s up by 36% today in A$ terms, vs the lows in 4th Quarter 2015. Since the big times in 2007, it has traded higher than today for 2-or 3 month only! 

Oceana Gold - had their AGM the otehr day, and ran into a very unfriendly bunch of NGO´s, beating them up on their activities in El Salvador....Not really sure, how much that matters - but at a time, when the new Philippine Premier is beating up the inmdustry, not a nice thing to have to deal with. A few voices from the Philippines wre also heard at the AGM - equally unfriendly....not good!

Foran Mining - saw a newspaper article, where a spokesman from Hudson Bay ( zinc smelter 80 km from Foran´s asset ) was questioned by anxious locals about the future of the smelter, if it runs out of it´s biggest ore source in 5 years time, and another, smaller one in 3 years time. This is the big play for Foran - Hudson Bay most probably has a to do a deal with Foran - whether that´s a takeover, or helping them into production. Foran have an indicated & inferred resource of 25 Millt with 13.5%ZnEq, or about 1 Millt of zinc and 400.000t of copper. As you know - I have a small position here.

Chalice Gold - completed the sale of their Canadian gold asset to First Mining Finance Corp in Canada today, for 32.26 Mill shares in FF ( tarding at 81ct today - so the transaction is worth 27.7 Mill A$ pre-tax, or or approx 25.8 M;ill A$ after tax. Thshares need to be held for at least 4 month. The cash backing is about 62 Mill A$ or 21.8ct/share as at today . The shares, trading at 16ct offered, are certainly too heavily undervalued - and the management under Tim Goyder have proved over the years, that they are not wasting shareholders money ( Tim owns 15.5% of Chalice himself ). If anything, and in hindsight, their only mistake has been to not buy more assets, when things were cheap!

I fear not much else to report today - so you have a nice weekend, and enjoy the ride in gold!


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