Market Update

General - Syrah - gold on the move!

Good afternoon

weak Industrial Production in Germany, and weak labor numbers in the States push up bond prices around the world…the US$ is weak, metals also slightly weaker - but equities are racing - obviously being priced more on interest rate differentials, than on earnings…Big stocks like Salesforce and Visa making new highs!"

But as you can imagine, gold is still on the run…hitting a new recent high in US$ and a new alltime-high in A$…I have not seen the gold price that actively traded for a while! Gold is knocking at strong resistance levels of around 1350-1360 US$/oz

Iron ore stockpiles are falling again - prices holding just above 100 US$/t

Syrah Resources - updated guidance today - and it´s yet another downgrade : from 50-55.000t to 45-50.000t of graphite for the current Quarter. Price received is also a touch weaker at 446 US$/t - but the owrst is probably the product mix, as still only 14% of production is course graphite, which trades at higher prices than fines. The company is forecasting cash of 43 mill US$ by Quarter end, with no debt. If the company had any debt, I would be very worried…I think the most important thing is to get the product mix improved…and that looks doubtful at this stage. Some people believe, that the plant will never be able to produce the product in sufficient quantity, which is needed by the market. If i´d be a holder, I would hold them…there is still a chance, that this company will be an important graphite producer and one of the leaders - but problems of Syrah have been so many, that the risks are outweighing the equation. I would stay clear….

Not that much new to report today…

Have a nice long weekend!