Market Update

General - KGL Resources - Newcrest - Perseus

Good afternoon

quite large inflows into LME warehouses finished the metal rally for now...I guess Chinese speculators needed a reason for profit-taking, following very strong rises over the last 2-3 month. We might see some more of this...but recent economic numbers from around the world have been pretty reasonable and pointed to a furtehr, sustained recovery. So if we should see much weakness, there might be opportunities coming up.

Inflation is coming back in Germany ( 1.8% ) and PPI increases by 0,2% MoM in the US. For sure, especially the ECB will watch that!

For a change, currencies are relatively quiet today ( well, that was until late afternoon..US$ now strong, and subsequently, gold is down a few $ ), as are equity markets.

Not all that much to report today....

KGL Resources - interesting development today, as RCF, a very well known PE-fund, invested 3 Mill$ as part of a 12.4 Mill$ placement. This is a very highly regarded investor. The placement took place at 30ct, and teh Executive Chairman also putting 1.2 Mill$ into it - that´s a big commitment. For the first time in years, they will be able to spend serious money on exploring their copepr project right in the middle of Australia! There is much work to do - at this stage, they lack tonnage to get this remote project off the ground. But more recently, electro magnetic surveying has proved to be a very effective tool for this resource, and a few conductors remain untested. Who knows, perhaps these guys are actually getting somewhere, after many years! I have been out for some time.

Newcrest - the Cadia East Cave 1 is starting production again. The repairs following the mini-earthquake have taken some time, and teh second Cave remains to be opened. The functioning of those two, and their safe operation, is expected - but nevertheless, you never know, and they are very important operations for Newcrest. For a while, there will be this thought in the back on investors mind....

Perseus - Sally-Anne Layman, a very experienced mining-finance person, is joining the board. I am sure, that this makes a lot of sense - she will be needed, when it comes to financing Yaoure sometime late next year. She was c-managing the mining finance division of Macquarie in Perth until last year. Also, PRU have hired a very experienced man as  General Manager of Sissingue. He ahs done it before, and has spent many years in French-speaking Africa Both are good additions to the board/management.

Have a nice evening!