Market Update

General - K+S - Strike - Panoramic - Oklo

Good afternoon

finally, equity markets gave in to all the bad news around today - at least to some degree. European markets are down by around 1% in the moment.

Metals are extending their cautious rise - copper is approaching heavy resistance level at 5000-5100 US$/t, while zin is making a new, recent high. Nickel is holding on to recent gains, while lead is also edging higher, while trading at resistance levels....Gold is largely unchanged

German investor sentimenmt is being hammered - no wonder after Nizza, Turkey, Brexit etc pp.

Johnson is making his first visit to Bruxelles - we are all very good friends now....

Mrs. Trump accused of plagiarism, as she has used just about the same phrases as Michelle Ohbama 8 years ago...well, perhaps it was not plagiarism - perhaps it just tells us something about how much more important it is to have a good PR machinery for the US election, than anything else....

Macquarie is increasing it´s forecast for the A$ by roughly 10%..they see the A$ trading at about today´s level against the US for the next few years. The changed currency forecast resulted in 20-25% cuts in earnings for most mining companies.

Henderson Global Investors wants a shareholder vote for Bayer´s bid for Monsanto - I can understand them - I think this is a crazy bid!

K+ S are having ( big ) problems with their new potash mine in Canada. Itw as meant to go into production next month - but a 28m high process container fell over, damaging the plant. The company does not know as yet, how bad the damage is. Estimates range from 6 weeks- to 12 month delay. In any case, bad news for K+S, but good news for the industry, which has seen a few voluntary mine closures already, and a new Chinese contract for potash the other day. Sentiment for the sector might have turned already, as Potash Corp and Mosaic have started to trend higher the last few days. Good news for our puppy Highfield.

Strike - updated a few days ago on progress of their testing. Klebb No 2 and Klebb No3 are pumping as much as tehy can - the main one is Klebb No.4, which in terms of design is coming very close to what the company believes, is needed to get commercial flow rates. The pumps have been installed successfully, the water production rates are steadily bing increased, and I would think, that the targeted rate of production has been reached now or will do so any day. We then need another 2-3 weeks to get consistent flows. So by early August, we should have a good idea, whetehr the field is commercial or not. Personally, I am definitely expecting a commercial field - the only question is, whether the proof will be made with Klebb 4, or whether it needs furtehr refirnement. In any case, the day of truth is getting closer. I hope and believe, that our patience over several years will be rewarded soon! As you know, this is one of my largest positions, and has been for some time!

Oklo Resources - came out with some promising drilling results today - but two of the good holes have just been twin-holes of previously succesfull holes, drilled with a diamond rig this time.As you can see, I am not convinced as yet - but I remain invested with a smallish holding, expecting more drilling results shortly.

Panoramic - it´s worth pointing out, that the A$ nickel price is trading at around 14.000 A$/t now - or 6.35 A$/lb. The company I believe is hopeful to get costs for Savannah North, the main orebody, down to the low 3US$lb - level, equalling about 5.50 A$/lb. If they can do so, the operation would be very close to a viable mining operation....I think a sustained price of 15.000A$/t would trigger the company into a positive development decision ( remember: When they closed Savannah, the nickel price was about 12.500 A$/t ), pending a positive outcome of the feasibility study. I guess, that the forthcoming Quarterly Report will disclose more exploration results for Savannah North, which is believed to contain enough nickel for a 15 year mine life. So - we are not there yet - but PAN obviously offer fantastic leverage to the nickel price, which will greatly profit from any more mine closures in the Philippines.

Have a nice evening


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