Market Update

General - Mineral Resources - Gascoyne - Lynas

Good afternoon

well well well…not a nice finish yesterday!

Today, European equities are recovering despite being closed yesterday, when the worst fall happened in N.Y. - certainly helped by some nice moves after market in the States, like Tesla and especially Microsoft. The market continues to be extremely unforgiving!

Base metals looking all right again - unless we see a substantial deterioration in the global growth outlook, most metals appear to be undersupplied in the moment.

IIFO-Institute numbers in Germany , though, suggest just this: Confidence is not looking good here! Bonds are having another postive day today.

Lynas - excellent Quarterly Report out today. Technically and operationally they seem to have averything in hand just perfectly, and the month of September saw a new production record, auguring well for this Quarter - IF they get all the approvals they need. The company has a yearly limit of the lantahnide concentrate they can process. because of strong production so far, they need approval to treat more shortly - otherwise they will ahve to close the plant for December ( which they can use for maintenance ) . The most promising part of the Quarterly was a comment, that some other approvals they needed have started to come through! So there is some kind of friendly collaboration with the auhorities. The much-talked about parliamentary comission will visit the company in early November.

Demand for their rare earth production is rising, and everything looks set for rising prices. IF something negative comes out of the comission report, the price for Neodynium / Praesodynium will sky-rocket, I think! 1/3rd of traditional Chinese production has been closed down for enviromental reasons, and lynas is the only producer outside of China.

Gascoyne - suspended because of board change!!?? Well half od the board incl a new chairman has been renewed a few weeks ago. Unless the new Chairman resigns - I think that would be an event hardly ever seen before! - I can only say, that the Managing Director is also a board member. The fact, that the stock is suspended, makes me think of him….I am pretty sure, that the market would welcome a new MD or CEO, given all the issues we have had. If things are slowly improving - and I believe that the soon-to-be-published Quarterly will show that - the stock is very cheap at a gold price of 1750 A$/oz!!!

Mineral Resources - investor visit to the new spodumene plant in Wodgina. The development is 8 weeks late - very unusual for MinRes! But on the positive side, the company reports on very strong pricing for spodumene - despite recent rumours of price weakness. I think we might ahve to wait for analyst reports on the mine trip - I guess tomorrow - to find out a bit more. Intersting note on the side: MInRes have employed another 830 people last 12 month, and had no big problem to do so. But the MD has mentioned, that the market is tightening up, and labor shortages will emerge soon. Just ok I think for our friends at Panoramic to come into production - anotehr few month wait might have changed that!

Have a nice evening


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