Market Update

Finders, Genex, Oz, Foran

Good afternoon

business confidence in Germany at it´s highest since 1991 - surprising, in light of the weak US$!

Iron ore rebounding, as Gina Rhinehart´s big mine is having some trouble, and as Tata Steel expects Indian iron ore demand to grow by up to 200 millt p.a. until 2025. India will become the No.2 steel consumer in the world very soon. If those numbers are right, iron ore miners will have problems to deliver  - at least at current prices.

Base metals are having yet another strong day! Copper firmly established above 6000 US$ now - I hope! - while nickel feels like touching the 10.000$-mark very soon...

Freeport warned of about 90.000t less copper produced this year, vs their estimate as recently as June! This is in a market, which is pretty closely the impact is much larger than it would normally be.Copper is up by 3% in the moment, trading at it´s highest level in about 2 years. Finders , Foran as well as Evolution ( of my favourite stock ) will be laughing all the way to the bank!

Acacia Mining - the Tanzanian miner has been presented with a US$ taxbill. Looks like that country is trying to catch up with the Phillippines Duerte, who wants to "tax  miners to death", in case they damage the enviroment. He also wants them to value-add instead of just exporting ore...more trouble ahead for the mining industry there? The rethoric does sound that way. Good for nickel!

Finders Resources - they are a good indication for things getting a little bit more interesting: while it would have been impossible as recently as probably 4 weeks ago, Australian institution Acorn sold 5% of the company or about 36 Mill shares in just a few days on the market to ready buyers...some institutional interest finally coming back into our sector!

Genex - respected broker Euroz initiates on GNX, with a price target of 36ct - this values just the existing solar project ( at 19ct ) and the following two projects on a heavily risked basis. they will upgade the valuation with further derisking of the projects.

OZ Minerals - a good Quarterly from them, placing them to reach the middle of their guidance for the full year. Excellent cash costs of 81ct/lb copper, and higher gold production making up for slightly lower copper production. Carapateena is making good progress - all on track here. The only negative was, that they have spotted a potential ground-stability problem at Prominent Hill. Ecen though tehy say, that they have taken emasures to thios issue not becoming a problem, they at least saw it necessary to give it a mention in the Quarterly. In light of the very strong copper price, I think there is no downside risk to OZL. The company had 525 Mill A$ cash in the bank - more than enough to develope Carapateena without any financing. Stcok remains excellent, pure copepr exposure, but is currently underperforming stocks like Antofagasta due to the strong A$.

Foran Mining - a smallish producer like Finders is finding a lot of interest - next in line will be the developers like Foran. They have been completely neglected - but with copper, zinc as well as lead running, I think it makes sense to revisit them!

Have a nice evening.