Market Update

General - Tanzania - Paladin - Kingsgate

Good afternoon

base metals are up again today! Only copper is trading a touch lower , following a relatively large increase in LME stocks . On the contrary, zinc stocks are at the lowest level since early 2011. Given Copper, Zinc as well as Lead have been strong recently, it´s probably time to look at my little Foran Mining again! Iron ore strong as well and catching up to some degree with very strong prices for steel more recently.

The Chinese PMI was expansionary again following some weaker numbers recently, and Europe´s PMI is still rising - from German to France, and even Italy and Greece. Strongest numbers since 2011, and especially new orders have been strong. Equities are strong again in Europe, while the US$ - surprisingly - is a little stronger today. In the US, the PMI was also at it´s highest since August 2014 . Like in Europe, new orders looking especially strong.

Gold is finding it tough again today, and looks vulnerable of the charts. Given the clear tendencies around the world for stronger interest rates, a test of 1200 US$ might be looming on us!

Tanzania - what a nightmare! I guess you have all seen the commentary surrounding the ridiculous situation of Acacia and the governments demands on them. Late on Friday, the government proposed a new mining law, under which 16,6% of all projects would go to the government for free, and roaylties would be increased from 4% to 6%. What a crazy plan...The parliament will decide on it this week. Numerous players are active in the country, from Peak Resources in Rare Earth, to numerous graphite stocks incl Graphex Mining, and several gold miners. Africa is and remains a somewhat crazy continent for investors...More news will transpire during this week, and I will have a conference call with Peak Resources on Wednesday morning.

Paladin - is finally breaking under a large debt position, and terrible prices for uranium - they were hiding today from having to pay back 277 Mill US$ in debt + interest by placing themselves under administration. I dare to say, that there will be very little , and probably nothing left for shareholders. The company was one of the truly amazing pre-crash wonders, moving from 1ct to 10ct and then to 10$!!! Unfortunately, all without my involvement!

Kingsgate - following a meeting in Bankgkok on the 27th, the deadline for talks has been extended by one month to the 27th of July. I guess extending a deadline means, that there is some hope for a solution??

Have a nice evening


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