Market Update

General - Foran Mining - West African Resources

Good afternoon

well well well…one strong day - and here we go again! Trump´s Tweed on the weekend has been premature…This guy is not a loose cannon, he is a loose atomic bomb!! Kudlow says, that there is no deal as yet with Mr.Xi….Stock markets around the world feel almost the same as small resources: Good news are a one-day wonder, and just a liquidity-event! Some comments today about the inverse interest rate structure in the States - the first time in many years. For many investors, this is a sign of recession coming! But things are very different these days - history does not need to be reliable anymore. In my opinion, there are not too many signs on the wall, that we will have a recession next year…certainly reduced growth - but recession???

Teck is selling a 30% stake in what will be their largest copper mine for 1.3 bill$ to Sumitomo - I only had a quick look at it, but looks like a real bull market valuation!

Some analysts are slightly worried about short term copper outlook, as the premium for cash copper in China has been falling like a stone, indicating sluggish demand.

Macquarie updated their commodity price deck. No major changes - lithium spodumene prices up in the near term, nickel down, bulk materials up. But generally, positive for copper, very positive for nickel ( despite cutting their old, ultra-bullish forecast ), cautious for the bulks. They have more or less only adjusted their forecasts to the reality…In %-terms, they see the largest upside by far for nickel.

Foran Mining - Hudbay, which got to be one of the possible predators of Foran, yesterday got embarrased by a leaked internal email, stating, that the Flin Flon mining complex would close in 2021 after 90 years of operating…sacking 777 people etc….If these guys do not have enough feed for their smelter, and we can only imgaine, how much it will cost to clean up the site of a smelter, which has been in operation for many decades….No wonder the Foran share price - for a change - looks well bid in the screen! Hudbay could theoretically pay anything for FOM - for as long as they can keep the smelter open. There are certainly other alternatives ( I guess ) for them, but they are located in South America and thousands of miles away! I know, that the ride in Foran has been very bumpy for all of us - but we could have an end of this journey in sight.

West African - in trading halt - financing to be announced - no details available as yet

Have a nice eveing