Market Update

General - Liontown - Tietto - Bellevue - RIO - Graphex

Good afternoon

Trump is tweeting again on the ( failing ? ) trade negotiatiomns- and this ridicilous Barr-story surrounding the Mueller-Report is probably also hurting things. Equities are pretty weak across the board today.

Inflation, as measured by the PPI, continues to be very subdued…

Another outstanding effort by a pommy soccer team yesterday….Ajax got completely overrun in the second half yesterday!

Two interesting, historic facts today:

Macquarie Bank is the only listed entity worldwide, which never had a loss in 50 years of history!! I am proud of having worked for them for 15 years or so.

AngloGold is exiting gold production in South Africa, where they produced ( I believe ) gold for 100 years! Tells you something about the sorry state of that wonderful country…

Nickel stocks are falling and falling…now at just over 170.000t…but unfortunately, nickel stocks are only one little part of the puzzle…trade negotiations and their potentially very negative consequences are much more important in the moment. All base metals down by at least 1% today

Liontown - you don´t have that many stocks quadrupling in 2 month these days…180 mill shares traded, closing at 8ct…and for a change, there is no imminent placement coming, as they just raised 7 mill$ ( at 2ct!! ). I really like Tim Goyder, and while he has had some success over the years with Chalice, he has not had a big win for years Good on him! Eventually - I fear not always, though! - the money is with the good people. A lot of speculation surrounding the stock, following another round of outstanding drilling results from the main project, Kathleen Valley. Their additional resource target of 19-31 millt might well hit the top of this range, once the new estimate will be out in 8 weeks or so. Grades, if anything, improved to 1.5% from 1,4% as well, looking at these long intersections. And as we know, there is a lot of corporate interest out there for strong lithium assets! 8ct probably are not the end of it! Kidman Resources, which received the bid from Wesfarmers the other day, sold 50% of their project last year to SQM for 158 Mill A$ at the time - LTR´s market cap as of today is 122 mill A$, and 100% of their resource looks now to be as big as KDR´s resource… Fantastic to have such a success from a company, which presented at our conference in Zürich!

Tietto - they announced some intersections, which could increase the high grade part of their resource - very high grades up to 400g, But I caution a little, as 1m intersections don´t add all that many tons! But certainly, this one is going into the right direction and I bought some more stock today.

Bellevue Gold - stock was up a few cents today - I guess on the back of a presentation Stephen Parsons did at the RIU Explorer Conference today. He is an excellent marketer. As you know, marketing is an integral part of running an emerging company…It´s also very interesting to watch the youtube video - link below. It remains a great story - 4 drill rigs currently working, fully financed for a very extensive drilling program this year, and next resource upgrade “in the 2.nd Quarter” - I guess it will be very late in the Quarter, as the last 500.000 oz-increase was anounced only in early February. BGL continues to be one of the ebst development stories in gold - perhaps the ebst in Australia. Not unbelievable cheap, but I think it´s still worthwhile to accumulate stock.

RIO - the company commented at today´s AGM, that a 180-strong exploration team is working on their new discovery, Winu, in the Paterson Province, and that they have no doubt, that there will be a mine. This is as bullish as it gets from a very conservative company like RIO. The labor cost alone to a major company like RIO ( with big overheads ) in a remote location would excced 35 mill A$ p.a. …probably closer to 45 mill A$….

Graphex - were do we go from here? The share price has stabilised and more recently, even tried to get through 30ct - but has fallen back since. The market seems bored…no news as yet from the Tanzanian government - like others, Graphex have all sort of positive indications, but essential approvals continue to sit at the cabinet-level, and wait for approval. The feasibility study will probably also be delayed due to some drill sample problems on the Tanzanian side ( nothing dramatic, but without going into too much detail, there was a 6 week-or so delay )….But these things take so long, that I am not really worried by that. Whether we have the feasibility study by June or July or even August - I do not really care, as the company is being financed properly by the loan from Castlelake. What is important, though, is that the price deck for the special product the company will produce, for use mainly in the building industry, is holding up. It´s not really dpending on the battery market - at least for now, that´s good news! And GPX look set to get much better prices for their product than for battery-material anyway, in a market, which is probably 20x the size of what GPX will ever produce. Market activity in Black Rock Mining BKT and Walkabout Resources WKT ( both companies show many similarities )has increased recently, and both companies have recently done small placements. In some regards, those two might be a little more advanced than GPX - but GPX have the big advantage of having what I call base-financing in place ( from Castlelake ) - even though this will need to be accompanied by a relatively small rights issue. Very hard to say, which project is actually the best - they all have pro´s and contra´s - but I really believe, that the financing sets Graphex apart.

We have recently seen, just how quickly something like Graphex can move from 22ct to 30ct - and that was accompanied by no news. Imgaine, what they actually might do, once there is news! And let´s not forget, that the NPV is about 25x the current share price ( without me saying, that the stock will go up by 25 times! , especially, as equity needs to be raised at some stage from Castlelake and existing shareholders ). But these quieter times should certainly be used by retail shareholders to build positions - for institutions, this is no option, as turnover rarely reaches 1 mill shares/day. As you know, I am a reasonable significant holder and strong believer!

Have a nice evening



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