Market Update

General - Tietto Minerals - West African Resources - Breaker

Good afternoon

jobs numbers in the States in line

base metals, platinum, palladium, gold, oil - all looking good in the morning - I guess thanks to the dovish statements from the FED - but some profittaking during the afternoon . More or less unchanged late this afternoon. The FED is worried about too little inflation, and the world ex US being very subdued….so most probably no interest rate hikes this year. The US$ was relatively weak initially, but is now recovering most of it´s losses and is unchanged by late afternoon as well.

Nothing stopping equities - but bonds also very strong,. as you would expect, around the world.

Swiss 10-year bond now at -0,4% yield…..the new reality: stop imposing tax on people - the government financing via bonds is making money instead!

Vale - one mine back on - another one voluntary closed down ( 10 mill t p.a. ), until full intergrity can be assured….

Breaker - many new drilling results, 60% of them to expand the resource, rest infill. Many intersections of 1-2g over good widths, but also strong results of 3-4-5-6g over several meters. Some deeper holes drilled as well, indication is for more potential underground sub 250m. The resource has not been closed off in any direction! The company is doing well, and there is only one way for the resource - that´s up. Only question - how much…very difficult to get a feel for that from the distance - but stock remains on my buying list.

Tietto Minerals - I saw them 1.5 years ago in Perth, prior to their IPO at 20ct. Company has a 700.000oz resource at 2 g in Ivory Coast, and has lately deliverd a range of excellent drilling results - some of them high grade. I think it´s very much assured, that the next resource estimate - due shortly, I believe - will show a strong increase - definitely over 1 mill oz. Not sure, whether drill density allows much of it to be in the indicated category - but looks like drilling results are hanging together quite well. Stock has a market cap of 38 mill A$ - not much, if you believe, that the resource has strong potential. I think it´s worthwhile to buy a few. The engative: The MD is a Chinese guy, who´s englisg is very hard to understand - despite him living in Australia for 30 years or so. As marketing of such a company is an integral part of management, not easy…hence, the register is full of Chinese names. As always with explorers, the next placement is probably not that far away - the comnpany has not raised any money since the IPO, and despite pretty low headoffice costs, cash will see an end later this year. They are spending about 1 mill in exploration per Quarter, and about 350-400.000 on headoffice and staff - so by the end of the current Quarter, will be down to about 2 mill A$ in cash. Certainly one too watch - I might buy a few. Ivory Coast is one of the better countries in West Africa these days.

West African Resources - thanks god, the stock has changed direction since INDABA - on strong turnover of 2-3-4 mill shares per day. I think a lot of loose hands might be gone, and the company should announce the updated feasibility study within a fortnight. I am hoping for 250.000 oz p.a. for 4-5 year at 550 US$/oz costs….and also a resource increase / reserve increase . The company has started construction earlier this year - planned production start is mid-2020. That is not a long time away! If the company delivers on my expectations, I think the share price should see a nice move. This is certainly a stock to revisite…remember, they are fully financed into production! And the current wave of M&A might well see them swept away….well, that´s what I am hoping for at least! A minimum of 60ct would be my target in a takeover.

Have a nice evening


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