Market Update

Northern Star - Evolution - Resolute

Good afternoon

well Mr.Johnson does not have the guts to become a I surprised????? The odds are rising, that England just wants to play with us...and might remain!

The PMI in the States was very strong today....

Australia had a great day - probably helped by some window-dressing for financial year end.

Northern Star - made a good announcement on excellent exploration success at Jundee today. Very typical stuff for that mine - no long intersections, som even only 30cm - but also some very high grade in there, of up to several thousand grams. But the mine will be getting ppretty deep, and MD Bob beamont´s words of a game-changer for Jundee might be a bit premature. I am repeating myself, when I say, that the company needs about 14 years to generate free cash to pay for itz´s market cap - with a proven mine life of average 2.5 years. I have no doubt, that tehy will extend this - but value is something which I cannot see here!

Evolution - is also not dirt cheap - but looking at the same measure, they need about 8 years to pay for the market cap in cash generation - and have reserves of 6 mill ounces, i.e. 4x as many as NST. At least, EVN is very good, relative value! They had tehy mine visit to Cowal today, their largest mine, which looks set for a big push back and a plant increase from 7.5 millt to 9 mill t. Total cost will be around 220 mill A$ , in financial year 2018-19. EVN also see the chance to improve recoveries by 5-6% by implementimng some changes to the plant at the same time. Reason for these plans is some exploration success, and analysts see a high chance of EVN adding 500.000 oz to the mine plan.

Funny enough, EVN have experienced a small setback in the market, following the excellent guidance for the next few years. As I said above - not that cheap, but cheap relatively and they do not carry any premium vs others, which they should have by now!

Resolute - announced the results from the Syama Underground feasibility study. Very good outcome....13 years proven mine life for total production of 2.3 mill oz at AISC of 880 US$/oz, for pre-production capital of 95 Mill US$. Stoping of ore will start as soon as Jan 2017. The MD emphasizes, that there very good exploration potential, and that mine plane is only including ore down to 600m. This is certainly a very positive announcement! Capex will be paid for with existing cash and from cash flow. Clearly, a much better result than for re-opening the Bibiani Mine in Ghana!!

have a nice evening


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