Market Update

General - Panoramic - Oz Minerals

Good afternoon

German unemployment rate at record low...

Consumer Confidence in the States a little bit weaker - the hurricanes did not help, I guess. But a concern remains the weak future expectations - Americans are still not that confident in their future.

Metals looking well supported today, probably helped a bit by the slightly weaker US$.

Panoramic - new reserve estimate - should not be a big surprise to followers of the stock. Nickel reserves increased by 424% to 116.000t; copper by 355% to 52.000t; cobalt by 744% to 7.600t. Reserves have been calculated by actual + forward prices of respective metals. Nickel Resources total 313.000t, copper 99.000t and cobalt 15.000t. The current reserve of savannah would support a 10 year mine life, as reported with their latest feasibiliyt study. That´s a lot of nickel, having in mind, that by 2205, the world could / should need an additional 500.000t of this type of nickel every year.

OZ Minerals - have started stage 1 of the Carapateena project developmeent, building airtsrip ect. Production is planned for late 2019. This will be a good asset - the only negative is, that building will consume most of the current cash next year, and in 2019, limiting dividends. But OZL are a well managed company, and will be a significant copper producer for a long time to come. Given the potantial long term upside for copper from the EV-theme, I think the stock is well worth a look again, following the recent correction.


Have a nice weekend