Market Update

General - Genex - Metro - Evolution - Doray - Breaker

Good afternoon

looks like weak bond markets, Trump´s tariffs, BREXIT - uncertainties and Italy are just too much for equity markets to bear in the moment….

German Factory Orders were reported as being very strong last month - but it´s a very volatile series. US unemployment is at 48year-low…but participation rate not rising as yet ( 62,7% ). New jobs below expectations - but large upward revision to previous month - and figures potentially distorted by the hurricane. Not good for bonds, in any case!

Everybody is talking bullish on copper - even though Goldman´s have taken back their very bullish forecast , saying now, that copper should trade around 7000 US$/t for the next few years, before going up strongly. Nothing wrong with 3.20 US$/lb, I would say!

Genex - Morgan´s in Australia initiated coverage with a 36ct price target. Their analyst is known as being very conservative with his price targets. The remains unchanged - we need an offtake agreement - hopefully coming soon - to be able to finish the financing. this will include either via selldown of the project, or via a large equity raise. The former is much more probable - and here, any price target/valuation of GNX will be very much dependant on the price achieved. All I know is, that the company has had numerous approaches from interested parties - so there will be a lot of competitive tension in this process.

Metro Mining - production update. By the end of Sept, a total of 1.22 Millt had been shipped from the project, including 822.000 t in the Sept-Quarter. Guidance for the full year remains unchanged! Product went to 5 different customers, and acceptance of the material has been positive. 80% of production for 2019 has now been sold forward, and strong interest continues to be seen. So all good here! Stock is very cheap…

Evolution - have toady received regulatory approval for the expansion of their most important asset, Cowal, from 7.5 millt to 9.8 millt p.a., at a cost of 40-45 mill A$. This underpins the long term production rate of 300.000oz p.a. for this asset - probably for 20 years. Good news - but I guess the marketw as expecting this to happen sooner or later anyway.

Doray - have sold their mothballed Andy Well project for 10 mill$ to a private party. That´s good news, as it removes remaining liabilities from Doray,. and also costs for care and maintenance.

Breaker - have now settled their 10.5 mill$ capital raise at 29ct. The company is now cashed up for an agressive drilling programm for the next 12 month! A little bit frustrating for the company, that they had to raise funds at this level, given the very positive resource increase the other day! But in this market, institutional investors have the freedom to wait for the next placement to invest - and don´t have to buy in the market! The stock will hopefully report ongoing exploration news, and within the next 6 month I am hoping for another resource increase!

have a nice weekend!



Schröder Equities GmbH


80538 München

Tel. +49-89-4613440-0

Fax +49-89-4613440-10




eingetragen im HR München, HRB 166985

Geschäftsführer: Wilhelm Schröder


The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by