Market Update

General -

Good afternoon

We would like to invite you to our yearly Australian Resources Conference in Zurich, 24th of February, Hotel Baur au Lac. As always, the attending companies are inviting all interested investors and other interested followers. Please pass on the information to your colleagues as well! 

Please register by using this link: ( if you have already done so, no need to do it again! )

Australian Resources Investment Conference

This year, following companies will attend:

Evolution Mining / Perseus Mining / Panoramic Resources / Prairie Mining / Genex Power / Graphex Mining / Breaker Resources / Peak Resources / Finders Resources / Energia Minerals


Market Update

Legendary investor Stan Druckenmiller bought back into gold....Gold ETF-holdings continue to rise....last but not least, the gold price also continues rising!

Escondida looks almost certain as going on strike by Thursday morning, Chilean time. The supply/demand balance for copper is finely balanced this year - Escondida is producing something like 1.2 millt p.a.. Any strike lasting as long as the last one at the world´s largest mine ( 25 days that was! ) would put a rocket under the copper price ( well, some of it should be in the price already ). Copper is dragging all metals higher today, despite some open questions regarding the closure of mines in the Phillippines, which mainly affects nickel - which is still up to a new , recent high.

Macquarie is talking about cobalt, potentially being the lithium of 2017. They can see substantial upside from the current 17 US$/lb - but they stop just short of giving a new price target.. To be on the bullish side, a price of 25 US$ for cobalt vs 14.30 US$/lb used in the feasibility study by Panoramic for Savannah North, would almost make a re-opening of the mine a certainty with nickel at the current 10.500 US$t, as it would add 20 mill A$ in revenue p.a.. Peter Harold is too good an MD to be waisted in a company, which is playing the waiting game - so I dearly hope for some price action in nickel, copper and cobalt to help them going with a 10+year mine life!

RIO out with a good result today, and expressing confidence via a strong dividend + a 500 mill$ buy-back. No surprise - iron ore is back to 84$/t, and all  large producers are just printing money! The stock ( along with all other large mining stocks in London ) was very strong initially - but sold off later. I guess investors are scared off by the potential strike....but there is also a general tendency to take profits in resources stocks today.

Potash - some talk here, that very strong demand from Brazil, alongside production cuts by the large North American miners, has cleared the deck for a 10-15% price increase with Chinese consumers. Talks apparently starting very soon. This would make sense to me, as nobody in North America is really making a buck at current prices, and some mines are actually loosing after sustaining costs etc. Highfield are slowly but surely progressing the approval process...slow and winding road! I am pretty sure, that they will need equity again, once approval has been received during the first half. An increase in the potash price would make an equity raising very much sexier! Some large funds have quietly been building positions, and I am sure, that they are very aware of the need for some more equity at some stage.  But before that happens, they will need the mining permit - which itself should be very positive for the stock. I am still a large holder...being  patient - and I hate that!

Have a nice evening


Schröder Equities GmbH


80538 München

Tel. +49-89-4613440-0

Fax +49-89-4613440-10




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Geschäftsführer: Wilhelm Schröder


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