Market Update

General - Perseus - Resolute

Good afternoon

not much was happening in equities today, until the US market opened weaker…metals except for zinc are strong ( copper +1,3% and nickel + 1.7%, as LME stocks continue falling ), US$ slightly weaker - helping gold back up to 1300 US$

China continues to buy gold…

Perseus - announces corporate debt facility of 150 mill US$ with three banks. The company believes, that this will be sufficient to finance the 265 Mill US pre-production capex for Yaoure. Cash position at Quarter end is a net 36 mill US$. If all goes according to plan, they will be ok…but I´s rather see the majority of the 44ct options being exercised on or before 19th of April, to be on the save side! But with the share price at 48ct, they will be ok! First gold is now expected in December 2020…Obviously, there will be some dilution from the options - but I am very happy to take that vs a tight funding structure!

Resolute - a mixed Quarterly. Production from Syama was excellent - 98.100 oz vs 74.000 in the previous Quarter - but of those, only 13.300 were from Syama underground. The balance was from the recently started, nearby oxide deposit, which has limited mine life. The company states, that the increased cash flow from this orebody has given them the opportunity to speed up development at Syama Underground, at the cost of production. To me, that sounds a bit of an excuse, as commercial production of it has been pushed out to the end of 2019 at the same time. There certainly is some risk with this highly automated, sub-level cave mine, being the company´s first such mine - and this risk has not been mitigated as yet. In my opinion, it has even increased a little ( by extending the target for commercial production ). In so far, I am surprised about the strong performance today. Not a desaster at all - but lingering doubts….Full Quarterly is coming out later this month - perhaps we will get some more clues from it. Production of their much smaller mine in Queensland has been impacted by wet weather during the Quarter.

Panoramic - have strengthened their management team with the new role of COO, for which they employed a very experienced guy. I think the range of small hickups they experienced earlier on in the comissioning phase ( now largely - but not fully - behind the company ) made them think of some additional help. Mr. Timler has been the MD of Medusa Mining in his previous job ( from 1.1.17-30.9.2018 ). I have looked at a few announcements, and he seems to have done a good job there.

have a nice evening


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