Market Update

General - Perseus - Matador ( Giorgetta) - Panoramic

Good afternoon,

Australia posted it´s largest trade surplus on record - obviously driven by iron ore.

bonds are weak again today ( German 10-year is now at 0,00 yield ) , following a set of more positive economic numbers ( European Services PMI pretty strong ) and some hope, that a hard BREXIT can be avoided. In the US, Services PMI is also positive…

Equities are racing, metals as well…nickel stocks fell for 31 days in a row now - at the recent pace, all LME stocks will be gone at the end of the year!

In my opinion, the market has never expected the worst case of a hard BREXIT -and at least for the last few weeks, has also hoped for a halfway positive outcome of the trade negotiations. In so far,the market will be a buy-the rumour / sell-the-fact situation. And the conservative investor should continue to progressively take a few chips of the table.

Quite a few placements today…to mention a few: Antipa Minerals, Cassini Resources….details tomorrow, once publicly announced.Looks like market conditions have improved somewhat, to enable smaller companies to raise some funds.

But I have to say, that there is no real interest in our part of the market. The only stocks running are the blue chips - and they are very much driven by iron ore.

Perseus - Frankling Resources increased their shareholding, mainly by excercising 44ct-options - good news for the company.

Matador Mining - that is interesting. I have never heard of them before, but Mark Clark and Nick Giorgetta acted as cornerstone investors for a 5 mill$ capital raising at 16ct, with a one-for-one free option, three years, exercisable at 23ct…The terms are extremely generous….I thinkw e all would have taken stock in the placement, with 2 very highly regarded mining professionals on board here. I am inclined to bulk at the current price in the market - 26ct - I hate to give that much to the initial investors, even as they are nice guys! But they will have a nice following in the market. I am surprised, that ASIC let´s the company et away with this extreme discount ( certainly incl the options ), without letting small shareholders having a bite via an SPP…The company has a 1 mill oz gold resource in Newfundland, Canada, incl a central resource of 800.000oz at 2.6g. I know nothing about it at this stage - but will certainly watch this cap is now 22.5 mill A$ incl the placement - undiluted for the options. So not a crazy valuation at all. Perhaps exploration stocks in Canada really are cheap these days….

Panoramic - the rights trading has finished! Nickel continues to run, and most analysts have targets of between 15- and 20.000 US$/t for the next few years. Panoramic will have full production in calendar 2020, and after that, for 7-8 years - most probably much more. Now is the time to buy…technically, all pressure from the rights issue is gone! I am sure, that the various, small hickups are behind us - the only question being, whether full production will be reached by year end, or say 3 month later. This is a risk I can take!

Have a nice evening



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