Market Update

General - Sheffield - Syrah - Apollo

Good afternoon

ahead of the rate decision in the States, equity-markets are marginally higher in Europe, as are bonds, as are the metals. All this is happening, as the UN laughes about Trump. I have to say, though, that he reacted pretty cool to that!

Copper premiums for cash delivery in Europe as well as in Asia indicate a tight market, as well as the ever falling LME stocks.. As Bloomberg said today - investors are undecided here to look at the current, strong demand - or at the potential negative effects on world growth from the tariff-war.

Apollo Minerals - have not spoken about them for a while, as nothing much happened! But action is starting now: Following inspections , planning and approvals from authorities, the company is now starting to re-install mining services into the old Salau Tungsten Mine in France. Activities include widening of the portal, installation of Ventilation and cabling, construction of walls and gates within the mine, and removal of waste, piping and any hazards. This will take about two month, and following a final health and safety inspection, the hotly waited exploration programm can start! Hugo Schumann will love it - action, at last…it has taken some time! I have little doubt, that there are many low-hanging fruits there - exploration will get us some good news flow! But probably 3 month to go!

Sheffield - done! The Mining Lease has been granted! The only important thing missing - and that´s probably imminent as well - is the Federal Enviromental Approval - company states, that this should be announced next few days. Then then company will be able to talk the M&A side of things…outright takeover, participation at project level, or going it alone after raising an estimated 130 mill A$ - all possible! We should know by the end of this year! As one analyst pointed out: The project has an NPV of 750 mill A$ in SFX´s hands - in the hands of Iluka or RIO, the NPV could easily double, as their cost of is dramatically cheaper, and they could also double production from day 1, as tehy would easily be able to manage the higher capex. The currently expected mine life is 40 years…

Syrah - another smalls etbakc, even though a small one. Some mining consumables they need could not be delivered as needed, leading to slightly lower production this month than last. Not nice, as they have had their fair share of hickups anyway - but not a big deal, and temporary. The chart is rockbottom - not for widows, but the stock could be a good buy down here.

Have a nice evening