Market Update

General - Gascoyne - Liontown - Strike

Good afternoon

there is hardly a day now, when we do not have to cope with new atrocities from Mr. Trump…they are numberless, and I just hope, that this episode of US-history really is just an episode! My fears are , that the people who elected him last time, actually endorse him…I think in no other civilised country a leader with so many lies and little - and not so little - scandals could surivive in such a job!

The FED is indiacting the possibility of interest rate cuts….Australia actually does it, for the first time in 3 years, to 1,25%

Inflation in Europe is hardly existant

China is pushing the car industry …number-plate restrictions in some large cities have been relaxed, making it easier to be allowed to get licenses for new cars. According to the news here, only every 400th person applying for a number plate, did get one.

Gold in A$ hits a new historic high of 1900 A$/oz. Finally, gold has seen a busrt of activity and buying - not sure, though, wheather I should like this…I think the trade war is getting serious now, and is creating a lot of Angst!

Very said, that the strong gold price was not enough to save

Gascoyne - from probably going bust! The administrator has been called in , and I have very rarely seen this procedure leaving anything for shareholders! Very unlucky for those guys, who signed up in the recent emergency-rights issue - notably ( experienced ) resources investor Commonwealth Bank, and German investors around the Balaton Group. Apparently, the resource model still did not work out, leaving the company with a much reduced headgrade especially over the next few month, and resulting in continued negative cash flow. The company had raised 24 mill$ of fresh equity in April and May - even that has not been enough to avoid the terrible!

I am sorry, that I invited them a while ago to one of our conferences - I hate it, when investors are loosing money this way! But the most important thing to me is, that the people involved with Gascoyne have not bene crooks, but very reasonable people - that is important to me!

Liontown - well at least a company from the last conference, which is delivering! Unfortunately though, I think only few people bought them at around teh conference time just a few month ago at 2ct! Even taking some profit-taking over the last few days into account, they are still up by more than 400%. LTR announced more drilling results yesterday - the best being 45m with 1,7% Li2O. They appear to be well on their way to increase their resource towards the upper end of their recent resource target of 9-30 millt of additional ore at 1,4% or thereabouts, which should put them firmly into sights of major corporates

Strike - has started drilling the West Erregulla well on the weekend.- full results will be known before the end of July - but some minor targets will be hit earlier. On the R&D issue, the company has appealed the negative finding, under which STX will have to repay the 2016 R&D subsidy of 6,3 Mill A$ in stages, starting 4 month after the appeal-ruling - which usually takes up to 18month. The company just raised 12 mill$ ( less 5,3 mill$ debt with CBA ) and received 5 Mill$ in option payment for an off-take agreement. Totherther with it´s recent cash position of a little over 7 mill A$, all good for the drilling of West Erregulla, and to finish the testing of JAWS. So for now, they can concentrate of the development of - potentially - two major gas assets - but at some stage, they will have pay!

Have a nice evening in the sun!


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