Market Update

General - Strike - Antipa - Kidman

Good afternoon

German Factory Orders are up, but by less than expected….The EU is cutting it´s German growth forecast to 0,5% ( now in line with government expectations ) and Europe down to 1.2% this year.

Iron ore is on the races again, after a court closes ( again ) one of it´s larger mines, which only recently hat re-started operations. Vale´s Quarterly tomorrow will be interesting!

Kidman Resources - analysts see a good chance for a third party to enter the takeover-play….perhaps SQM ( JV partner of KDR ), perhaps somebody completely new. I thought in the first place, that the 44% premium offered by Wesfarmers would be a knock-out…Especially, if we see another bid, it would only deepen the difference between investor interest and corporate interest in the sector! Certainly, it augures well for the sales process of Pilbara, which is currently being run for up to 50% of it´s mine, being valued at up to 2.4 bill A$ vs market cap of 1.4 bill A$!

Strike Energy - yesterday highlighted more work on their West Erregulla project, which exhibits a lot of look-a-likes to Waitsia, which is 16km away and which led to AWE being taken over in a contested and bitter takeover fight. As always - the prove is in the pudding: Drilling will start sometime in May - provided the drill rig finishes it´s work in Queensland halfway in time . Looking at the Warrego share price ( JV partner of STX in this project, about half of STX´s share price is currently covered by the exposure to West Erregulla. If it will come out succesfully, the share price will explode - if not, it should half….not everybodies type of play, but certainly worth holding, if you are in there! I have been there for a very long time…so I will certainly keep them !

Antipa Minerals - having finished their capital raising recently, they have now started a 20.000m drilling program in the Paterson province, Australia´s hottest exploration ground. During the 2018 fiels season, several gephysical targets have been defined, and drilling will hopefully be exciting. One of the prospects is only 8 km from RIOS´s much talked about Winu desovery.

have a nice evening