Market Update

General - some more Trump-bashing ( sorry! ) - Liontown

Good afternoon

Trump, in his great wisdom, might finally have to send his tax-filings to the prosecutor. You wonder, why he has been fighting this so hard….In the meantime, somebody who is saying:…”As I have stated before, if Turkey does anything that I, in my great and unmatched wisdom, , consider to be off limits, I will totally destroy and obliterate the Economy of Turkey”……got to be clearly off limits himself? Or completely crazy???? Is this really somebody who is fit to be president of the USA? Time for Republicans to act - unless they don´t intend to look at themselves in a mirror ever again!

Boris not much better…is a non-deal Brexit unevitable?? All tehse things are not good….I am amazed, that equity markets still are, where they are…despite the all-important low-interest rate enviroment! Business moral is getting hit left, right & center….

Industrial Prduction in Germany- for a change - was surprisingly up last month.

PPI in the States is much weaker than expected.

Gold ETF´s holdings rise for the 16th consecutive day!!

Equities are relatively weak today, bonds are stronger, no major changes in currencies….

Tsingshan, the world´s biggest stainless steel producers, was reportedly behind the recent LME -warehouse withdrawals of nickel…today, the record amount of 8100t to only 117.000t. I think it tells you a story, that it was them, and not a speculator….there is real fear of a supply shortage of nickel, once the Indo export ban takes hold on 31.12.2019! Nevertheless - nickel gave up some of it´s recent gains and fell by 1,6% in the moment, while other base metals were just a fraction lower.

Gold is strong - 1508 $/oz in the moment - no surprise, given the mental stability of the president of the most powerful country on this earth!

Exploration is still finding ready followers in Australia in the moment! Stavely Resources announced another two, excellent drill holes - mainly for copper - and seem to be on the verge of a potentially significant, but in case, high grade resource - stock is up another 15% today, to a market cap of 230 mill A$. Their fundraising most be getting very close!!! Chalice are moving much slower, but steadily as well..and they do NOT need any money at all! A much btter speculation, in my opinion, as are Carawine Resources - cashed up from a recent placement and with a good ground position surrounding some earlier, good drill results for gold. We should have more fun to come in the sector…

Amazing, that drilling companies and other mining services stocks are not moving in the moment….companies like Swick or Ausdrill are mainly active in the gold space, and as you know, all mid-sized Australian gold producers have dramatically beefed up their exploration budgets, as have most Canadians! Investors are still not keen to see M&A and if it happens, it has to be very well reasoned. Therefore, I think this exploration push is far from over, for as long as gold holds at reasonable levels. According to Bloomberg consensus numbers, SWK are trading at 2.84x EV/EBITDA and ASL at 4.3x for the current financial year, with prices going up, especially for drilling. I would be very surpised, if earnings for somebody like Swick would not rise by at least 20% this year.

Liontown - announced some excellent drill results from their main lithium project, Kathleen valley. Holes like 29m with 1,3% LisO, incl 13m with 1,8% / 16m with 1,9% / 10m with 1,9% and 21m with 1,2% have the potential to add 25-50 millt ( that the exploration target ) to the existing 75 millt resource , as tehy extend the orebody by 400m. Nobody wants lithium in the moment, and I understand that - we have more than enough of it for the current state of the EV market. but this will change in 2-3 years, and ore bodies like this one don´t come too often! Very worthwhile , I think, to keep them in the portfolio.

Have a nice evening