Market Update

General - West African - Metro Mining - Prairie Mining

Good afternoon

investor confidence in Germany is falling further…US producer prices rise by the least in a year…

Metals are trading strongly today, as are equites - both like the positive outcome of “trade”-negotiations between the US and Mexico.

West African Resources - announced infill drilling results from grade control drilling on a 12.5x12.5m spacing, some even on 12.5m6,5m spacing. Results have been very positive, confirming 30-50m wide mineralisation and even giving some indications for upside from the resource estimate. This is very good news, and not to be underestimated as part of the derisking process of a new gold mine - as we could all witness with Gascoyne and Dacian recently , not always straightforward! - in both cases, grade problems have been a big part of the mayhem. Sanbrado is 30% finished - all going according to plan on costs as well as time. The stock continues to be outstanding value, while investors are putting a large discount on the country, and comissioning-risk. Perhaps understandable follwing recent bad experience with a few start-ups - but in my opinion, very harsh on the company. I am still waiting for some corporate to come out of the bush and raise it´s hand!

Metro Mining - their Bauxite has had a few little problems, leading them to downgrade production guidance from 3.4-3.6 Millt of bauxite this year, to 3.3-3.5 millt. MMI has had a few minor issues like slightly delayed integration of the new 7.000t barges, and late delivery of the new triple-trailers. Both are up and running, and mining rates have increase substantially. The main reason for this slightly reduced guidance , though, has been a late cyclone ( wet ground conditions ) and very unusual winds, which led to high tides and extended time needed to load ships. This lead to a strong increase of stockpiles of 100.000t, which is a good thing tohave. Except for these minor issues as above, all is going well - and these issues appear to have been overcome. And let´s face it - guidance is down by 3% or so, while the stock fell by 20% over the last couple of month, and halfed ove rthe last 12 month - without any real reason. Alumina prices in China ( benchmark for I believe 60% of sales ) have recovered nicely and it´s ttrading currently higher than average levels of last year - while the A$ is nearly down by 5% , having a strong effect on profits.

Prairie Mining - stock is down 20% in Poland today, as JSW board has dismissed the CEO Ozon, who has been a strong supporter of the idea to take over Prairie, or buy into it´s assets. I hate politics!

Have a nive evening



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