Market Update

General - St.Barbara - Syrah - Horizon Gold

Good afternoon

well we have had the German Unity Day yesterday…sometimes, I have to admit, I am still thinking of whether this was a good thing! Berlin was more fun before, and we did not have that many right-wingers! But to be fair - I guess the relatively large amount of those right-wing radicals is more an expression of the relative numbers of people feeling left behind is larger in the East than the old West! In any case - some of the recent events have been quite disturbing…and Bavarian , provincial elections are approaching, with the AfD expected to get 12% or so - and that´s in the most affluent State of Germany!

US Bonds very weak, tradingat the highest yield since 2011 at 3,20% for the 10 year. Powell likes the economy and believes, that it can grow for some time to come. Initially, teh equity market liked this yesterday, driving the DOW to a new high - today, pessimism for bonds pervails, and equities are pretty weak everywhere.

St Barbara - pre-up production numbers were released today. Co pany produced 98.500 oz - 62.800 from Gwalia, and 35.800 from Simberi. Looks like Gwalia was perhaps a little down on expectations, and Simberi better - but the company leaves guidance for both mines unchanged for a total of 350-375.000oz this financial year. Cash holding increased by 7 mill to 350 mill A$, after paying 37 mill A$ in dividends, tax and furtehr investment in Peel Mining. Solid Quarter, but not fantastic.

Horizon Gold - the affiliate of PAN continues to get some exploration success. The positive results from gold exploration recently, were repeated today from anotehr property, where drilling has hit 43m with 3,7% Zn; 0.6% Cu from 196 m. Old-time drilling results from this property included some nice intersections like 44m with 1,2% Cu from 56m. The company comments, that there good indications for a VHMS-style deposit, which could be pretty bullishh. I have the feeling, that the exploration team is finally getting a good handle on the assets - it does not need all that much to make the Gum Creek Project work, and while they are certainly not there yet, the EV of HRN even after todays rise is only about 8 Mill$. Not much success needed to justify a higher valuation!

Syrah - is back on the board…5 weeks loss of production….not good at all, but should be ok, given the 100 mill$ cash position. ….I think the market will look past this - but today was teh day for the shorts!

Alumina - big action in Alumina stocks today. Norsk Hydro´s large alumina smelter in Brazil will be out of business for quite some tiem - potentially incl most of next year. Our little MMI is little affected, though, as I have learned, that the Chinese local market in alumina ( that´s where they get paid, and according to that price ) is different and has been much more stable anyway.

Have a nice evening!