Market Update

General - Syrah

Good afternoon

metals are pretty strong today....don´t ask me why! copper/nickel especially, up by 2-3%....Equities in Europe are still seeing profit-taking today, even though several forecasters are increasing growth expectations for Europe.

High yielding bonds are under pressure...some cracks appearing in this market, which until recently, traded at the lowest ever spread to government bonds.

Gold survived yet another major schock-sale of 4 mill oz last week well, and is creeping up again. 

Speculation in conglomerate-related gold explorers is still rampant....share prices of stocks like Venturex, Degrey, Impact or Marindi are flying high on massive turnover....I fear it will end badly for retail punters! Some dodgy looking placements are also happening....IPT placing stock exclusively to a major shareholder at a 28% disount + a free option! Greed is coming back???!!

Syrah Resources - presented in Australia at a conference today...first graphite prouction is planned for this month, before slowly but surely ramping up. The market is watching this one with great interest - Syrah will be the largest producer by a long shot, and could swamp the market, if tehy are not cautious. They claim, that quality will be targeted over quantity....I think this will be in everybodies interest. In my opinion it´s important, that new projects do not produce exactly the same qualities as Syrah does - the chances, that syrah will beat them on price, are high, as tehy will be able to use economies of scale like nobody else. But Graphite has many different uses and specifications, depending on who is using it. Even for batteries, different producers require in some cases different material. But as I pointed out before - Syrah is well capitalised, has good management, and will be a world market leader, making it very attractiv for institutional investors. The stock made a new high today, as commisioning risks seem to be abating.

Not much news otherwise...

have a nice evening!


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