Market Update

General

Good afternoon

the chaotic market in the States for overnight credit, where interest rates quadrupled within two days, before the FED moved into the market in a big way, sound pretty alarming to me. While some of the reasons can be explained, I wonder about some risks we do not know about?

Markets are relatively quiet today in the run-up to the FED decision. Bonds are being bid up - certain, that the FED will cut rates this evening?

Gold trading at 1505 and back up at 2200 A$/oz

German car industry sees very weak sales in August - down 8%

Junior Gold Miners GDXJ : new members Gold Road and Dacian - no dramatic changes in Australian stocks otherwise. Both stocks are not very sexy at current levels…

West African - massive turnover - and cannot be explained by the forthcoming Index inclusion , which is only happening on the 23rd of Sept. More than 3% of the company changed hands today - 3 large block trades. I can see, that WAF presented very well, and what is a very cheap stock in Beaver Creek and Denver - but perhaps finally some corporate action here? The company is being valued at between 60ct and 1$ by brokers and represents one of the few stocks, which actually trade below NPV….and the risks are reducing quickly here.

Azumah Resources received a highly unusual and unsolicited takeover bid from it´s JV and financing partner, a private equity firm. More action at the junior end! Azumah are expecting the release of the final feasibility study for their project in Northern Ghana very shortly, and are urging shareholders to take no action. I have to say, that a near doubling of the share price of a previously completely friendless stock is not that bad….

I fear not much else to report!

WS

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