Market Update

General - Foran - St Barbara - Australian Resources Conference 23.2. in Zurich

Good afternoon

German Industrial Production for Nov very strong...Exports very strong...

European equities going slightly stronger throughout the are metals...while gold is weaker at 1310US$ in the moment, hurt by a strong US$ today.

Conservative investors in Europe can sell already, as stocks are up by nearly 4% this year already!! I guess it´s fair to say, that investors with strong cash holdings will be very nervous...and nothing sucks more than your neighbour making money, and you don´t!! The famous cab-driver will enter this market soon!

St Barbara - have upgraded their yearly guidance by about 10.000oz...Gwalia produced 62.800 oz for the Quarter, and 127.100 for the Half, and Simebri 36.700 oz in the Quarter, and 70.600 for the Half. Grades at Gwalia have been very strong amid lower tonnage, but strong grades from Simberi have led to an upgrade of guidance by 10.000oz for this mine.Simberi for memory will only produce for another 2-3 years, hence it´s not that important. The company has got 216 mill in cash, following payment of 31 mill$ tax and two further investments totalling 10 mill$ in Catalyst, and Peel. Great numbers, once again - but you know my view ( which has been wrong so far ! ): Stock is fully priced.

Foran Mining - in this market, you rarely see stocks trading below a placement price! They raised 5 Mill$ at 49ct - but stock is still trading at a discount to this, even after a good jump yesterday. I guess institutional- or high net worth players don´t really go into the market for such a lightly traded company, as turnover is very small indeed.. The company has stated before Christmas to start drilling as soon as possible, to look for extensions of the ore body, and for infill drilling to satisfy Glencore, before they will enter the full feasibility study. The exploration drilling could be a game changer for this little company, which is very cheap anyway - and is one of my largest holdings.Strong copper / zinc prices are the key here! Theoretically, the stock is worth a multiple at current metal prices.

We have now confirmed most of our companies for the Australian Resources Conference in Zurich, on Friday, the 23rd of February:

Evolution Mining / Panoramic Resources / Perseus Mining / Apollo Minerals / Sheffield Resources / Graphex Mining / Finders Resources / Genex Power / Metro Mining and most probably Foran Mining.

A great mix of gold/nickel/copper/zinc/tungsten/mineral sands/graphite/bauxite/alternative power! The only hot commodity we do not have is lithium!

Invitations will be sent out very soon - but you can also let us know via return email, wether you will attend.We are also grateful for anyone inviting colleagues, for as long as they are serious people, and you let us know about their interest.

Have a nice evening


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