Market Update

General - gold! - Breaker - West African - Genex Power

Good afternoon

Chinese PMI unchanged at 51,2 - German unemployment at record low 5.7% - Italian unemplyment falls by more than expected to 11.1% - Japanese Industrial Production highest since 2008, but it´s a volatile series - US PMI lower than expected, and falling - but still pointing to growth

South Africa on the verge of increasing black ( elite ) ownership of mines, amid other changes. That is "exactly" what the country needs!

Crazy Corbyn catching up big time to Theresa May in the polls...if he wins, would be a major ( and nasty ) surprise, still.

Holdings by gold-ETF´s rose by 100.000 oz last week, and a total of about 200.000 last month. Largest increase by a long shot into the Deutsche Bank ETF - looks like the Germans are scared by Trump ( and I am not the only one! ).. Gold is about to break the 6-year downtrend - that could be a major event - probably driven by geopolitics? Buy EVN, Buy RSG, Buy PRU, Buy WAF The main indication for gold not going through resistance though, is the unusually flat trading of gold stocks worldwide.

Breaker Resoureces - another round of very drilling results yesterday. they are on the way to a 2 ( ?) mill ounce resource? Three drill rigs drilling continously to have a first resource estimate by Dec 2017. The drilling results underpin the recent share price is well cashed up to continue at this pace until early next year - so no placement overhanging the stock. I would be very surprised not to see a new mine in the making here - the only question is size. 

West African - assay results for the deepest intersection yet, from about 400m depth, and which had visible gold in the drill core, should have been out last week. The announcement got delayed, as the company is double checking the results. NO or little gold is almost impossible - in the end, the core contained visible gold - so the only explanation for this got to be, that results have been outstanding. Every 100.000 oz of gold to the reserve/ or at least indicated resource add about 70 mill $ to the NPV of the project...I believe, that the company will already have anotehr few hundred thousand t of this very high grade stuff, may be up to 30g....The enxt resource estimate might be out for this years Digegr & Dealers Conference in early August...until then, 6 drill rigs are continously drilling. To me, this is still the best development story around, in my opinion. Like the resource, like the people, hungry neighbours around, and more than enough cash for agressive drilling until year end easily! From 150.000oz for there years and falling off thereafter, we might see a 200.000 oz producer for at least 5 years....and hopefully more drilling success to come, as this thing has not been closed off at all so far.

Genex Power - the stock has been steadily falling on little turnover - market cap is now only 60 mill A$, valuing the hydro-pump project and Stage 2 Solar Project at just 10 mill$ approx. The company is fully financed for the Stage 1 Solar Project, which will generate 50 MW and has a price guarantee from the Queensland Government for 20 years. It is on track to start producing electricity by the end of this year, as planned. The company is in the middle of negotiating a price guarantee for the Stage 2 Solar, as well as the Hydro-Pump Project. This is a rougly 500 mill$ development, and negotiations will continue for some time. What we should hear about in the next two month is a agreement with some inevstor to build the necessary power line for the new projects ( the existing power line will be fully utilised from Solar Stage 1 ), and progress on government negotiations. 

What has changed overthe last 12 month is the time table. The company had originally expected a 24 month construction period for Slage 2 and Pump-Hydro - this is now 36-42 month. Contrary to earlier expectations, construction- activities for the Pump-Hydro has to be done sequentially, and not in parallel, as hoped for. This is certainly a negative! I still believe, though, that Genex is one of the best buys around! The need for battery storage is as large as ever, as is the governments will to stabilize Australia´s energy market.

Have a nice evening