Market Update

General - Mineral Resources - Crusader

Good afternoon

base emtals are very weak today - zinc down 3.7%; lead down 3,5%; copper down 2.3%; and nickel as well as alu  down 1.5% . I have no idea, why this is happening - perhaps it has to do with the Russian sanctions? Somebody liquidating? Glencore with some problems due to Russian exposure? No idea....

Equities are edging higher, as Mr.Trump seems not so certain anymore, whether he wants to send these beautiful things to Syria...which in turn, is creating some profit taking in gold. Still - technically, gold has a very good feeling about it, and buying for the large ETF´s has apparently been pretty strong.

Mineral Resources - I managed to listen to their conference call today, following the agreed takeover of Atlas Iron. In a word: Very  very impressive! This transaction is all about cost cutting for the entire operation, using common infrastructure - that is the BOSS automated railway system ( to be developed for about 1.5 bill A$ ), as well as the use of common port infrastructure. MIN expect to cut costs of their current 35$/t by at least 50%! On 18-20 millt of iron ore, that is 350 mill A$ p.a. or more! The takeover also opens blending or ore , where Atlas-ore and MIN-ore have different impurities, which can be favourably blended, resulting in a better, overall product! For the BOSS system, there are potential outside investors knocking at the door, as well as other financiers. MIN will use the BOSS system to open the servive as well to other users, in conjunction with selling those clients also other services like crushing etc. 

Overall - and I realize, that the above has to be very superficial in this blog - I think this will be a very positive transaction for MIN-shareholders in the medium term, and even more so for Atlas Iron shareholders. This is another step in the impressive long term  evolution of this should be a shareholder. Interesting and  on the sidelines, the company also announced, that they are envisaging a price for their spodumene of 960 US$/t vs previous expectations of 900 US$.

Crusader- placed 6.5 mill A$ worth of stock at 0,055 A$. Not sure, why they are talking about net proceeds of only 4.5 mill A$ - part of which goes to debt. I ahve to say, that it has not been a bad exercise to raise 6.5 mill$ in light of the companies history - but I wonder where the 2 mill$ are going to. Also, the company wanted to raise at least double this amount....

Have a nice evening