Market Update

General - Heron - Finders

Good afternoon

German labor market was flat last month, unemployment rate stays at 5,7%. 

Jobs and Personal Income in the States doing ok, while consumers expectations are much worse than their feeling about current conditions. No surprise - except for talking a lot of s..t and troubling the world, Trump has delivered aboslutely nothing so far - on balance, he has delivered much worse than zero!!

The last 1-or 2 percentage difference in economic growth are just a matter of mass-psychology, in my view. No wonder perhaps, that Europe with it´s new found identity is feeling great and growing slowly out of it´s mess, and the US retreating in relative terms!

Bonds show no sign of recovery - equities are holding today. A large internet IPO for a change in Germany today - Rocket lists Delivery Hero very succesfully today, following teh sale of a stake in a South East Asian e-commrce page at 20x the investment to Alibaba on Tuesday. It does not prevent - surprisingly - the share price of Germany´s internet flagship to fall by more than 10% this week.

Base metals are holding their nice, recent gains again today. Zinc looks increasingly  tight, while copper probably needs a bit of a breather before a new attempt at the 6.000$-hurdle.

The Australian market saw a very soft close of the financial year today. I guess nobody dares to have buying orders in the market anymore these days on running the risk of manipulation-accusations! 

Finders Resources - respected broker Petra Capital initiated coverage on the stock with a 42ct share price target! While Finders is still one of my largest holdings, I cannot see 42ct, unless using very high copper prices. But the stock is certainly very cheap at 17ct, and should trade 50% higher , in my opinion. The Quarter just ended should have delivered record production at costs below 1US$/lb  C1 cash costs. The company is rapidly paying back debt - will be interesting to see in the Quarterly, just by how much. debt could be gone by year end at current copper prices, and theoretically, they could become a huge div-payer next year. I hope, that the Board will announce a dividend policy soon.

Heron - timely announcement of a very large financing ( relative to the companies size of 29 Mill A$) today, going along with a  recent high for zinc. 240 mill$ in financing for a small company is an indication for what is possible! Thank´s god, that I ceased to be a shareholder some time ago - I would have been very disappointed today.!The stock actually fell 15% to only 7.1ct today, just a tine fraction above the 7ct placement price.

HRR raised: US$ 60 Mill in debt, 16 Mill US in a silver streaming deal, and 29 Mill A$ in equity from Orion Mine Finance; 42 Mill A$ in equity from Greenstone Resources; 33 Mill A$ from Castlelake LP, 32 Mill AS$ in a general placement. I will look at more detail at it some time next week.

have a nice weekend!


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