Market Update

General - Panoramic - Genex

Good afternoon

a nice finish today for what has been a good week! The change feels bloody good!!!!

A bit of profittaking is creeping in now - but European equities are still having anotehr good day so far…Manufacturing numbers in Germany indicate reducing growth, but overall, a healthy picture. More worrying perhaps is the political situation in Germany in the moment!

Don´t ask me, why gold got hammered in a few minutes early this afternoon -

Base metals very strong today - Chinese short-covering continuing? Copper up 3% in the moment, nickel up 3.5%….Great timing for the development update from:

Panoramic Resources - making good progress on restarting Savannah.. All on track for first shipment in January! Plant comissioning starting in October, increase of tailings facility finished in November, recruiting well advanced - all going at least to plan! The larger listed stocks in Australia, WSA and IGO, have seen strong price movements this week ….PAN has some room left! And longer term, assuming nickel will go to 7.50 US$ next year, the stock can still double. There are very limited vehicles to invest in nickel in Australia - and into serious base metal miners in general. The institutional market will love to have something like Panoramic back in production! One can feel the urgency and the enthusiasm in the company - great for Peter Harold to be a producer again very soon! Get going - we are well set! And who is not, should move soon…

Genex - received development approval for the hydro project from the local authority. No major deal - but these things can take time, if you are unlucky. The main story, though, will be an off-take agreement for the power. Very hard, how long this will take, but one thing is for sure: The local labour government of Queensland is very supportive, and is pushing very hard for renewables, giving me hope, that such an agreement could be in place in the enar future. Once this is done, the company can seriously talk to financiers, which are needed to complete the financing on top of the NAIF-( conditional on off-take - ) approved 516 mill A$ of subordinated debt. Euroz is currently having a price target of 80ct for the stock, with a bull-target of 1.50 A$, if everything goes right!

Graphex - the only analyst follwing the stock, industry veteran Chris Baker, sees a 12 year mine-life, and therefore, has an NPV10 after tax of 412 mill US$ or 560 Mill A$ for this project! Even taken into account, that the Tanzanian government will most probably get 16% of the project for free, the remaining NPV would still be 25x higher than the current market cap. There will be more dilution from fresh equity - but looking at these numbers, I would be very surprised, if any equity raising would take place at current levels! I am fully aware of the fact, that these numbers sound rediciolous - but i honestly believe, that they are indicative of the underlying value of this thing - otherwise, I would not own so much stock!!

Have a nice weekend!


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