Market Update

General - Breaker - Saracen

Good afternoon

this feels much better...hopefully, metals and metal stocks have found the bottom! Nobody is overly bullish for the short term, which is anotehr positive sign! Metals are capping off a few, good days with small dvances today, as is gold.

German GDP growth for the 1st Quarter has been a good number today, and more importantly, credit growth in China has been stronger than expected. US consumer confidence very high, while retail sales are up, but lacklustre. CPI slightly lower than expected - resulting in bonds having a strong day.

Breaker - what a great example of super-fantastic returns ( positive as well as negative! ) which are possible in tehe resources sector! The  stock is now up by a little more than 300% from the IPO back in 2012. But in the meantime, Breaker fell to a low of 2.4 ct only 2 years ago, only to put on nearly a 30-bagger to trade at 66ct today! Persistance, luck, knowledge, and very cautious handling of shareholder money have all contributed to it! I invested in the IPO, and as you can imagine , I sold all the way up ...but I am still holding a 2%, and am very happy with it. It looks like Mother Earth has been with them, and the chances of having a +1 mill oz resource by year end are very high. The best, though, is that ths must not be it! There is upside from strike extensions, and underground, and ultimately, my target for BRB is to become a 100.000 oz producer some time in the next 3-4 years. The stock is still correctly priced, and could well go higher. No reason at all to sell!

Saracen - I have never been in teh stock, which for 2-3 years until early last year has been a good performer. I was always of the opinion, that SAR were overpriced. The stock is almost halved from the top level, but fundamentally, tehy have made progress. It always has been a story of costs coming down, and tehy have not delivered on that. Sourcing ore from many different pits/resources has never been an easy task! The company has put a lot of effort and money into drilling, which has delieverd many good results over the last 12 month. They could have turned the corner, finally. I am watching this one closely.

Have a nice weekend!