Market Update

General - Bellevue - Tietto

Good afternoon

is there a change in perception on interest rates coming? More and more I am reading about central banks around the world disovering, that low interest rates don´t do their job: To increase growth! If that perecption should gain acceptance, it could herald bad news for equities, as well as for gold!

But I don´t believe in a change as yet…if interest rates should rise, the world will be f…ed! It´s more important probably to come to some kind of a trade agreement,and to stop this de-globalisation - at least for the sake of economic growth.

In any case: Difficult times ahead!

The top 5 German forecasters cut their expectation for growth for next year to 1% from 1.8% - but they are seeing downside risks from this number. Looking at the world as at today, I think they might be pretty optimistic with this number! As I said above - we need an end to the trade war, which is undermining confidence big time in the moment! And a raft of crazy tweets don´t help, as is Boris…as is Hongkong…as is Syria…as is Yemen…….

Equities continue their march downwards…the rather shocking PMI in the States has really done some harm! As I said the other day - what will happen to the US-budget deficit, if the States go to zero growth????And nobody is talking about it, yet! Impeachment is grabbing all the headlines.

As you would imagine, gold is profiting - as are platinum/palladium, the latter will probably finish the day at a new closing high close to 1700 US$! In A$ terms, it definitely will, as the A$ is trading below 0,67 US$ again.

Funny enough, base metals are holding their ground today - nickel is even up by 2% today, as LME stocks fell another 4400t to 147.700t today. This is despite some bearish talk about stainless steel stocks/prices in China, and big & rising supply of NPI. For my little Panoramic, 17500 US$ = 7,94 US$/lb or 11.87 A$/lb are absolutely fantastic prices - for as long as Savannah North will perform. For the Quarter just ended, the bad production numbers for July/August let me expect nothing good….the important test will be, when tehy reach the new ore body in November, and when numbers should start to improve!

Tietto - finally, they got what I was missing so far: Some long intersections! 20m with 14.8g and 82m with 3,14% incl 26m with 9.5g are teh kjind of results, which bring tons to the resource. So far, they have had many intersections with nice grades, but only 1-2 m . The company is drilling full steam ahead , prior to a new resource estimate late this year. Tietto is one of the more hopeful explorers, and substantial additions to the current resource of 15.7 m t at 2,1g will be very valuable, and drive them into a feasibility study.

Bellevue - as expected, more exciting drilling results also from them: 3.8m with 14g gold as an extension of previous, excellent results from the Deacon Lode are important. Other results within the Deacon Lode are expected - visible gold in the drill core. The resource is open in all directions, I ahve no doubt about substantial extensions to their already large resource will come, eventually driving it to hopefully 2.5 mill oz at very high grades.

Have a nice evening