Market Update

Good afternoon

while iron ore and steel rebar are making new highs, the good news for manufacturing around the world continues: European PMI today at it´s highest since 2011 and better than expected. Base metals are taking a little breather so far today, and gold gives up some ground, as recent inflow into gold ETF´s stops, and the US$ is gaining.

The world´s largest zinc smelter is cutting production rates due to a shortage of zinc concentrate...

Following Foran´s break-out the other day, today Panoramic has cleared all chart resistance and is on it´s way to 60ct - but for that target to be reached, better nickel prices will be needed. The market seems to discover smaller stocks now!

Beadell - raised 51 Mill A$ at 29ct today...a relatively large discount to the the price of around 35ct prior to the suspension. The company will sue the funds for general working capital, a ball mill to treat different ore, and exploration. No doubt, that the exploration potential is substantial - and the ball mill was always needed at some stage....Still, I find the dilution disappointing at a time, when the company should have made strong cash flow from Duckhead. I am not a friend of these guys...But obviously, some investors have a different view, as a large London-based fund has taken a large chunk of this placement ( Blackrock? We will find out soon ). At 29ct, perhaps an opportunity. for a large gold fund...but these guys have to deliver yet!

Regis - a very different type of company! Again, they have produced a strong result, with a nice dividend - but the stock is probably a little overpriced at the current A$ gold price, given the limited mine life. But I would much prefer to buy a frugal, well-managed company like RRL, which has had substantial exploration success over the years and still has, than Beadell...

BHP, the world´s largest mining company, have come out with a very good result today, and a strong Dividend. No doubt, that the current half will be much stronger, even though Escondida is on strike. But iron ore, and a better oil price will help them a lot. Management made positive comments on the oil price going forward, and was much more cautious on iron ore than RIO or Fortescue in their recent comments. But whatever tehy said - fact is, that iron ore is extremely strong and shows little willingness to go down, as all of us have expected for some time now!

have a nice evening