Market Update

General - West African - Tietto

Good afternoon

US payroll numbers have been very strong indeed - CPI in Europe stronger than feared (yes, these days we hope for some inflation! ).

Equities do like it…also helped by more, positive earnings reports.

Metals including gold going stronger following the US numbers.

Coldelco sees the recent weakness of the copper price as short-lived…they expect production to contract by 0,5% this year, and consumption to grow by 2.3%

The responsible manager for sourcing battery materials for Tesla warns of shortages in several battery metals coming up, especially lithium and nickel

West African Resources - Sprott research sees the NPV5 by 79ct/share at the start of production - so at approx 72ct today. They see significant upside from inclusion of the deepest intersections recorded as yet of 25m at 15g, which is 150m deeper than the current resource. The only problem with the stock is to see a trigger for strong performance…for whatever reason, they continue to trade way below their value. Some people do not lke West Africa ( yet some of the West African producers are trading at reasonable levels ), others cite comissioning risk ( which is existant as always, just not as much as in this case ). In my opinion, the company is certainly worth 60ct+/share, and the asset is first class, showing huge cash-generation potential. One day, somebody will grab them!

Tietto Resources - I mentioned the stock recently. They finished a well subscribed placement of 7 Mill$ at 15ct over Easter, yet are trading at only 14ct now ( where I bought some stock today ). I think the chances are very high, that TIE will increase the existing high grade resource of just over 1 mill oz at 2,1g, as well as the nearby lower grade resource ( total combined resource is 1.7 mill oz ). The market cap of just 36 mill AS$ ( of which about 8 mill is cash ) is not doing justice even to the existing resource. As a ball park, the market is starting to get interested, when a company can show production of 125-150.000 oz p.a. - in the case of West Africa, it might be a little higher. But TIE should be well on track to get there. For now, though, the stock is a pure exploration play, and as such, I think they will add a lot value = several hundred thousand oz of resources - before year end. All demand seems to have satisfied in the placement ( in which I did not take part because I had no cash at the time ) - now the stock entered into very lacklustre , downward performance with little turnover. I would be very surprised, if they would not recover to 20ct quickly on some further drilling updates- and god knows, what the potential is here. Too early to tell - but anything above 2 mill oz becomes very interesting, especially if they can grow resources by adding material with good grades.

Have a nice weekend