Market Update

General - Berkeley - Kentor - Genex - Zinc/Foran Mining

Good afternoon

well golds short term fate will be decided on today with the release of US labor market numbers. They will be very important for Mrs.Yellen to make a decision...Yesterday, gold hast tested the lows, hopefully, and reversed - the same could be seen in gold equities, which rebounded nicely. If they hold this gain today, they will reverse the breakdown of the 6-month upward trend, which took place yesterday as measured by the GDXJ.

In any case, and whatever the outcome of today´s figures , I do not see the gold story as finished - too many reasons out there to own some gold!

The Chinese PMI yesterday, the strongest number in 2 years, supported base metal prices yesterday and today, and zinc especially is making new highs.

The Spanish parliament failed to elect a new government this week - there is another chance for them to do so today. As a friend of mine said - the Spanish pride does prevent everyone from giving in, even if that results in hitting a wall with 180km/h! The economic impact of this country not having had a functioning government this year is already apparent. If unsuccessfull today, new election will need to be held again in December. Bad news for Highfield - this deadlock does not make it easier to get somebody to sign on their mining permit, which fundamantally, should not have any problems to get through. I continue to hope, that the provincial governments of the two provinces involved increase the pressure to get this project off the ground, and get the central administration in Madrid to move faster!

Berkeley - this uranium developer has performed very well this year, especially in light of the uranium price, which has fallen by 25% to about 26 US$/lb this year, a multi-year low. Contract prices are still around 39 US$, though, and closer to 45$ in the longer term. The company is currently trying to lock in some longer dated contracts to underpin the planned financing of their 100%-owned and permitted ( Stage 1 ) mine in Spain. These off-takes ideally will also include some form of equity- or debt provision - but in the end, I guess some more equity will be needed as well. The Resources Financ Corp, Blackrock and Fidelity are all substantial sharehodlers and do have deep pockets, and I understand, that more, also sizeable insto´s have been trying to build a stake - probably making further equity not that hard to obtain for this only new uranium project on the drawing board I know. 15 US$ cash costs are placing BKY at the low end of the cost curve.

In the meantime, we should see some drilling results from the important Zona7, which represents stage 2 of the project, and where drilling recently has been done to increase this high grade resource.

Zinc - has broken all resistance in A$ terms now, and is 100US$ or about 5% away from doing so in US$ terms. The A$ price has shot up by 50% from DEC 2015 lows, and is tarding at the highest level since late 2007. The chart looks great ( if you need one, send us an email ), and underwrites the bullish sentiment for the metal. It´s not easy to invest in the story, as most zinc production is hidden within the major mining companies, but there are a few stocks with meaningful exposure, like Nevsun in Canada. As always, the best upside will be in the developers, and we have a few names around there like Heron Resources and Venturex in Australia, and Foran Mining in Canada, on which I would like to concentrate today.

Foran Mining - I have written about them before, and teh stock has started to move a little with a EV fully diluted of about 25 Mill Can$, trading at around 25ct. But the share price is a far cry from the level in 2012 around 80-90ct, since when zinc in can$ has moved up by 50%, and copper ( their main other metal ) in Can$ has fallen by abouit 25%.

Foran is developing a zinc/copper project in Canada, about 100km from the Hudson Bay smelter, which will run out of concentrate in about 3 years. The PEA ( similar top an advanced pre-feasibility study in Australia )from 2014 targeted 26.500t of yearly zinc production, and 17.000t of copper production, and arrived at a NPV of 382 Mill $ and capex of 240 Mill$. Capex as well as costs would have fallen again since then. The company has also iniated some successfull exploration and has had a good sniff at two further VMSA-deposits ion the area - but they remain very underexplored so far.

Pierre Lassonde, one of the very best known mining identities in Canada ( ex Vice Chairman of Newmont, co-forunder of 16 bill $ Franco-Nevada ), owns 12% alongside Darren Morcombe ( Chairman ), who is a succesfull, Australian entrepeneur living in Switzerland. From what I can see publicly, Lassonde´s average in-price is more than 50ct for FOM: In my opinion, this little stock is a real sleeper, and Hudson Bay should be the prime contender to buy it. Finishing up their smelter would result in a massive , enviromental liability of many hundred mill Can$, and tehy got to be quite desperate to add concentrate to their coffers. The very recent break-out of the zinc price could trigger some renewed interest in zinc stocks - and Foran is one of the few around. As you know, my fund owns a reasonable position here.

Genex Power - they have finally come to life a bit - not as yet in terms of a better share price, but they have seen some better turnover in the market. The next few weeks will be very important for them: In September, the government will hand down the decision about which solar projects will be supported with grants. These could be quite sizable, and I have reason to believe, that GNX´s Queensland project is one of the most eligible, and possibly, the front runner of them. Power purchase agreement, the transmission line and permits are in place. The 50 MW project will cost 118 mill A$, and the very vast majority of that should be able to be financed by debt. I believe, that a 20-30% stake at project level would be very desirable for an infrastructure-investor, as the size of this project could be much larger in future, once GNX have build a new transmission line for the adjacent hydro-pump project, which is the real price in this story. The feasibility study is planned to be finished by late September, enabling the market for the first time to run numbers on this project. While I believe, that the value of the solar project could well be 30-40 mill$ ( already more than todays market cap of 29 mill A$ ) the value of the hydro-pump asset should be much higher. I guess we will find out within the next 6 weeks - but the substantial de-risking of both projects in the near future should finally get Australian, institutional investors interested in this stock!

If you look at their Annual Report, published this week, you can find a very impressive list of deeply experienced people on the board and within the management team, quite unusual for such a small company.

Kentor - they have announced some very sexy drill core from their latest drilling program at their Australian copper project last week, and assay results should be out shortly. If they can show similar intersections like recently, the stock might well have a bit of a run. At current copper prices, I do not see this project to get off the ground any time soon, though, and I am not sure, whether you want to wait for 2-3 years, untilw e see improved prices. I think the expected bump in the share price might be a good opportunity to take some KGL off the table.

Have a nice evening,

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General - Evolution - Beadell - Resolute - Perseus - West African - Cardinal - Highfield - Panoramic

Good afternoon

bad start to my daily yesterday - it disappeared somewhere!

Anyway - here we go....

Mrs.Yellen has disturbed our party! Rising interest rates are certainly bad for gold, even though there are many reasons to buy it except for ultra-low interest rates! And it looks like we will have to live with one increase for this year! Markets will want to get a feel for the extend of rate rises to come - I think that will be very important for gold. One or two rises will not hurt that much...and I would be surprised, if we saw much more than this in a world economy, which is still very fragile.

Australian gold stocks have seen a quite dramatic reaction to the very strong performance of the first 7 month this year, which drove valuations to the overvalued territory, generally. But the A$ gold price has fluctuated between 1745 A$/oz and 1770 over the last 3 weeks, and is now trading at 1745 A$ - so hardly moving, while share prices are down by 20-30% from their highs across the board. This does offer opportunities for those, who have missed the boat in the first place.

Stocks like EVN, PRU, RSG, BDR among the producers, and WAF, CDV etc among the developers are all cheapish again now - provided the gold price holds at 1300 US$/oz. All of these companies are cashed up again following strong cash generation, or/and placements - with the only exception of EVN, following an aquisition.

Evolution - much has been said and written about their aquisition, being a 880 Mill A$ purchase of the gold stream, and 1/3rd of the copper stream of the Ernest Henry Mine from Glencore. I only want to say here, that the purchase has been consistent with their well flagged strategy, to keep 6-8 operating mines, but to improve asset quality via M&A. This is exactly what the company has done - selling the short mine life of Pajingo, and buying the proven 11 years of gold production + copper from Glencore. Depending on your gold price outlook, this auqisition has been made at fait value, if you are reasonably cautious on gold & copper - or at a very low value,. if you are cautiously optimistic, and expect an increase of reserves over time, which is seen generally as a very fair chance. Glencore have spent very little, if anything, on exploration - this will certainly change unter EVN´s guidance. At today´s gold price, and at around 2.20 A$/sahres, EVN are very good value again. Interesting to see, that Jake has put his money where his mouth is in buying additional 2 mill shares in the current capital raising. As a retail investor, you should get notice in a day or two with a chance to subscribe as well, which is strongly recommended, if you are even halfway positive on gold.

Resolute - reported very impressive numbers. The company has put a long history of debt behind itself...the only thing missing is the fantastic transparency of say EVN in reporting. RSG made 27.6ct/share in earnings, ore 213 mill A$, generating a 167 Mill A$ gross profit from operations at an average gold price received of 1624 A$/oz . Having reduced debt by 91 mill A$ in the year, the company now has net cash of 75 mill A$, and is producing about 315.000 oz annually at about 1200 A$ AISC annually. Having Bibiani, Ravenswood Extension, and Syama Underground in the pipeline, production is forecast to grow to about 450.000 oz over the next 3 years - financed by cash as well as very strong cash flow at current gold prices. The company has seen a dramatic turnaround under the relatively new MD, and the inclusion into the ASX 200 will see multiple brokers taking up coverage of the stock.

Beadell - as expected, the first half was a pretty average, having produced only 56.000 ounces - and the stock has had a quiet severe correction from the overvalued mid-fifties to 36ct now. The company is guiding for up to 100.000 oz production in the current half, as Duckhead high grade ore will be processed. The good news is, that AB1 as wella s AB2 will over time also see improved grades, following some very successfull exploration - and a resource/reserve upgrade will also be announced this half. So while I do have some reservations as to the management, I think they are very capable and the stock has been overdone. If you want some more specualtive momentum than you would have in EVN or RSG - this is a good stock to purchase.

The same applies to Perseus - they will continue to be a high cost producer, and will even burn some money in the current half at a gold price of 1300 US$ - but if tehy can stick halfway to their mine plane, the fgirst half of 2017 will see further improvement, before the next financial will generate very solid cash. PRU are probably the best leverage to gold within the Australian, established producers, and hence, I would rather miss the first 10% upside, and wait for gold to tick higher again before committing. But the mix between high costs, and a strongly rising production profile over the next 3-4 years remain very interesting!

West African Resources - announced a surprise placement - probably a little opportunistic and based on very strong demand for the stock. They raised 21 mill A$ very easily and amid a shortage of strong, new stories...resulting in WAF paying back the 5 mill$ Macquarie-loan, and still ending up with about 23.5 mill A$. This is much more than enough to finish the feasibility study ( I guess only 5 mill$ needed at worst ), and to continue an active exploration program.- they might even be able to order some equipment like ball mill for the plant early, once the BFS is out late this year. WAF also announced the maiden ersource for their recently drilled M1 prospect, which had 191.000 oz at 5.1g gold estimated, resulting in an overall resource of 20 millt at 2.14g. The company is clearly on it´s way to a 140-150.000 oz producer.

Cardinal - being the otehr highly successfull, West African developer, they announced some very high grade results in August from infill drilling. - the best ones so far. I see potential for the overall resource getting closer to 1.3g/t from 1.1-1.2g - this sounds small, but 10% grade improvement, if you have a low grade resource, are very important. The overall resource could well be 3 mill oz, and it remains to be seen, what the in-pit resource will look like. It will definitely be smaller - but could also exhibit higher grades than the ones mentioned above. Having a very low strip ratio and a very consistent resource, I think this will definitely be a mine, even at lower gold prices....This one, as well as WAF, has corrected from an over-excited level, is very well cashed up, and looks like good buying here as well.

Panoramic - nobody wants to know, but PAN have recently delivered a sensational resource upgrade for Savannah. The resource of Savannah North now stands at 175.000t at 1.7% Ni, + 74.000t of co and 13.000t of cobalt. The overall resource at Savannah now has 226.000t of Ni, 105.000t of co, and 15.300t of cobalt and is 3.5 times as large as when the projected started production 13 years or so ago. Even more important, the reserve grade of recently stopped production has been 1.35% Ni - raising hopes, that cash costs of production in the feasibility study ( to be announced at about year end 2017 ) could be close to 3 US$/lb! This is a large resource already, and it remains open in 3 directions....Anybody who believes, that nickel one day will trade above 12.000 US$/t or 5.50 US$ on a sustained basis, got to buy some and put in the bottom draw! More details of the proposed IPO of the gold assets should be announced within 6 weeks or so, potentially providing some short term upside.

Highfield - during my absence, HFR announced a MOU with Cargill to market the companies salt . Cargill is a relatively large player in the field, and for them to contract with HFR, would be very good news. A MOU is basically not more than "the intention to do a deal" - but it´s clearly showing solid interest from cargill in the product. Some investors had seen the by-product salt as a negative, as you better get rid of it, before it creates a problem for storage. A firm deal can only be made, once the mine is permitted - and that process remains ion the final stages. There are no questions unanswered- the ball is entirely with the administration in Madrid. The bad news here is, that there is still no government in place, even though a solution has become closer...In the meantime, a merger between Agrium and Potash does create some excitement, and would clearly be good news for the potash market. Both stocks are up strongly, and a merger could indicate the end of the bear market in the fertilizer.

For now, have a nice evening

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General - Paringa - Panoramic - Troy - Kingsgate - Venturex - West African - Genex - Strike

Good afternoon

much weaker than expected GDP-numbers in the States - no interest rate rises on the horizon, I guess!

Equities certainly like that, metals are unchanged ( after beaing weaker earlier on ), and the US$ is currently loosing nearly 1ct against the Euro...

Gold is on the way up - gold mines in the States are trading at the recent high!!!

The world continues to benefit people, who have financial and property assets....the poor guys are being left behind even more by the day!

Amazon followed Google, Facebook and Apple yesterday with super-earnings....while Oracle bids 10 bill$ for a clout-based business, Netsuit, 40% or so owned by Larry Ellison.

Erdogan continues on his path to dictatorship, and will confiscate all private assets of 3000 people he has taken to jail....unbelievable, that we have little chance but to still communicate with this bastard!

Before I go on holidays, a massive day in terms of Quarterly Reports today...

Iluka - the mineral sands producer is making a bid for Sierra Rutile in London, another mineral sands operaotor. The consolidation in the sector has only just started, I believe....Low interest rates, ample investor appetite for resources , and a dirst of new, quality projects are driving it!

Barrick are putting their 50% share of the Golden Mile in Kalgoorlie on the block....Bloomberg says, that price target is 1 bill A$. Perhaps the next one for Evolution? Chinese companies would also be interested,e specially Zijin.

Gold mining stocks in the US trading just 1.5% below the recent high...the race continues!

One little number I really like: Macquarie Bank has a larger market cap than Deutsche Bank today...who would have been brave enough 10 years ago to see, that this would happen! Macquarie is still one of the best banks 20.000 miles around, and I am very grateful for having worked their for 16 years - and hence, my fund is a holder. The yield of 5.6% and PE of 12 is not demanding at all!

Paringa - the coal minnow made a placement yesterday, raising 6.5 Milöl$ at 17ct. I took a small slice of it for my fund. PNL are one of the ebst stories still, in my opinion....coal in Kentucky....almost a dirty word tehse days. But coal fired poower will be with us in teh States for many many years to come. Most listed coal producers over there have gone up by 100-200% this year...and PNL will be the enxt one going into production. Initially, 1.8 millt p.a. ( of which 55% are already contracted to power stations ) from a small mine called Buck Reef No2, requiring only 39 Mill US$ capex - followed by Buckreef No.2, which will bring total production to 5.5. millt - so quite sizeable. Buckreef No.1 has all approvals in place - Buckreef No.2 needs another 12 month for approivals, and then anoither 12 month to be in production ( company has changed plans recently to start with Buckreef No.2 due to very low capex needed ).. Broker Argonaut have a 216 mill US$ proejct valuation, vs market cap today of about 30 mill US$.....Their valuation for the company is 0,98 A$...vs 0,21 A$ today. As always, the truth will be somewhere in the middle...In any case, the stock should be very cheap for a relatively low, risk, good quality project. Some of you might remember Taso Arima, who presneted the company at our conference in Zurich 2 years ago. As always, we were too early - but the story is outstcanding, in my opinion!!

Kingsgate - Quarterly out today. Stock still suspended...and very little hope, that Kingsgate will be able to operate the Chatree Mine in Thailand after 31.12.2016, when their metallurgical license expires. The Government just does not wantz an gold mining! IF the debt , held by subisidiary Akara Mining, is ringfenced from Kingsgate itslef, teh stock is cheap - if not, they have a problem! Cash incl bullion is 55 mill A$, debt ( within Akara ) is 75 mill$...and the only, significant asset remaining is KCN´s silver development in Chile. Measured by the NPV, Kingsgate should be cheap, based on this aset - but nobody will touch teh stock, until the debt situation is 100% certain. What a nightmare!

Panoramic - Quarterly out...no major surprises, as production figures had been out before. Very low costs - but not represntative for the future, as there was no development in the Quarter,. and much btter grades than normal. Both nickel miens are now on care and maintenance. Exploration of savannah North continues to be very exciting - good intersections, good grades ( which are pointing to a resource of around 1.4% nickel and 0,6% copper + some cobalt ), which should result in a reserve ultimately at betetr grades than the previous ore body. The bankable feasibility study will be finsihed by year end....Compoany is sitting on 30 mill$ in cash + receivables, a reasonable gold asset ( most probably to be floated with a nice chance to make some profits from the entitlement to shareholders ), and what is probably going to ba nickel asset with a mine life of 15 years+....The price target for PAN is everybodies guess...in my opinion, and in a normalised nickel market, where not 60% of all prooucres loose cash, the stock is still very undervalued.

Troy Resources - another Quarter to forget...ongoing problems with their new mine in Guyana, which is vasically their only asset - beside of some debt! Liquids of about 10 mill US$ - need to pay back 5 millUS$ of debt every quarter....you can see the risk here! The COO got sacked a few weeks ago - I can easily see, why! Nothing should go wrong...and I would not want to be a holder!

VentureEx - the re-activation of this company got another leg to it: Company raised some 4 mill$ from placement + rights issue at 0,006 A$....Good opportunity to byu a call option on zinc! Both mining areas have strong potential for more copper- as well as zinc-reserves, and as there is very little zinc exposure out there, zinc fans should be taking this up.

West African Resourecs - excellent infill drilling results from M5 yesterday - 41m at 2.2g/gold - that´s the kind of drilling which should increase grade in the new open pit. West African gold explorers are still finding a lot of interest, as existing producers are generally not cheap at all anymore. Next stop will be a resource estimate for M1 deposits, which could define the pathway to 150.000 oz of annual production - and the bankable feasibility study. The company has more than enough cash to finmish all necessary drilling/studies. WAF and Cardinal are still good stories - my fund is holding very reasonable positions in both companies.

Genex - Quarterly out yesterday. The company is still open track for some very important announcements with regards to their solar project in Septmeber: power purchase agreement, bank financing, feasibility study. I think government grants + debt will be sufficient for nearly 85% of the capex - very little capex left to be financed by equity - and even that might be done by some strategic investor. The hydro power project is still the main story - but solar will give them some early and good cash flow. NO Australian institution is buying this one - just too small...but that will change over time. My fund is holding a large position, at least relative to the small size of the company.

Strike Energy - spoke to them today. We are still not there!!! BUT - Klebb 4 has been pumping now for 10 days, and is doing so very well - following some initial engineering problems. Within 4-to 6 weeks we will know, whether Klebb 4 brings the project to a commercial flow. As always - takes a bit longer than planned! There is certainly no guarantee, that this point will be reached ( I guess a minimum of 200.000 cbfeet/day is needed ) - but the chances are high and as good as never before. As we all know, STX are sitting on a massive resource, and I ahve no doubt, that it will be produced from - the only question is when....and how much more it will cost to get there. For now, Strike are well financed until at least year end - that is, at a strong activity level, spending 3-4 mill$ Quarterly. Once they have proven commerciality, there will be massive demand for the stock anyway, as the enviroment ahs never been better. Gas prices at the East Coast of Australia have sky-rocketed in June and July to a level, which is clearly unsustainable - but a possible longterm price of 8$ per GJoule lokks conservative vs teh spikes of up to 25$ we have seen recently. South Australia is having electricity outages, as coal fired power has been closed down, and power generation is depending on solar & wind, while some gas-fired power stations are sitting idle, as there is just no gas available!! STX´s asset is in South Australia, and could be readily delivered by exisiting pipelines.

In the moment, all gas is being sucked into the new, very large LNG developments in Queensland, following about 20 bill$ each capex into these projects. Any gas STX could produce, would find ready buyers at very attractive prices. The company has given indications in the past, which let me believe, that costs could be around 4$ for them - any pricing above 5$ would be good news, and I am expecting 7$+.

As you can see - I am still very bullish on STX, even though this story has needed way longer, than I originally anticipated. But the price is high - if successfull, the value of STX will be several times today´s price in a few years! STX are still one of my largest positions in my fund, alongside Highfield, Berkeley, Finders, and Starpharma.

Have a great weekend - I might send one or the other report from my holidays in Northern Germany. In any case, enjoy the summer!

Schröder Equities GmbH

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Geschäftsführer: Wilhelm Schröder

General - Beadell - Strike - Highfield

Good afternoon

strong employments numbers in Germany today, "inflation" a touch stronger than expected. In the US, no surprises today from labor market numbers.

Finally, some profit taking in European equities today, perhaps also driven by a slightly weaker US$, following Yellen´s indication yesterday, that interest rates would not rise any time soon.

The same was certainly very positive for gold, and also for base metals - gold is trading abover 1340 US$ in the moment, while base metals are having a strong day in London.

Oil is weaker again - I guess mining companies will be happy with that anyway. The recent run of oil to about 50$ had got some shale production going again in the States - but the retreat to about 41.50 US§$ for WTI will choke that off very soon again. We should have a new trading range for oil between 40-and 50$ for WTI, in my opinion, and I do not share the view of many analysts, who see the price of Brent hitting 60$ within 12 month, and 70$ a further 12 month out...

Many Quarterlies...will talk about a few only:

Beadell - this was a miss, as expected/feared! 24.500 oz production was up by 15% vs previous June-Quarter ( remember, weat season for just about all of the first half year ), but if you want to produce 150.000 oz p.a. on a sustained basis ( that is, without the additional benefit at times, when tehy mine from the small, but very high grade Duckhead deposit ), this is just not good enough. AISC of 1245 US$ were extremely high, partially driven by a strong Brazilian currency ( which was still lower than in June-Quarter 2015 ), increased exploration, and pre-strip/cutback - still, I am less than happy with this. Material movement increased by 35% - that was a positive.

Having said all these negative things, exploration during the Quarter has delivered absolutely outstanding results from several deposits. But the operation continues to be a difficult one, and the enw management has not completely changed this at this stage at least. One must not forget: The cash flow of a mine is not generated by exploration, but by mining and processing! Overall, I have a position in BDR - but I am not really happy with it!

Strike Energy - I did not manage to talk to them today, after their Quarterly had been released. As always, very technical - I will talk to them tomorrow morning, and come back on this one in tomorrows report. One thing is for sure: gas prices at the East Coast have gone throuigh the roof in June and July....but more tomorrow

Highfield - Quarterly out...the most important thing is still outstanding: enviromental approval. I think realistically, they will not get it, until a new government ahjs been formed in Spain. In the moment, it looks like the conservative party will run a minority government, supported by the right wing. That might not last for very long - but HFR only needs a few month at worst. All oustanding questions have been answered a few month ago - there is absolutely no indication for anything negative - but without a new minister for enviroment, and one for mining, very little progress is obvious. The company will ahve a few things tom report about in the current Quarter: Hopefully an off-takle agreement for teh salt, the dfinitive financing with European banks, and a fix-sum contract with the contractor, who is building the project, Acciones. I will keep you posted, once progress can be reported on these issues - but the main point is still the approval! I continue to hold a very large position in HFR.

I have to finish for today... more tomorrow:

Schröder Equities GmbH

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Geschäftsführer: Wilhelm Schröder

General - Fortescue - Perseus

Good afternoon

markets continue their liquidity-driven, and in the US, partially results-driven run! Equities strong, Bonds strong, gold strong....central banks around the world are sending their best wishes! this will end in tears - just when we don´t know....it certainly could be years away! In any case, ample reason to own some gold!

Durable Goods orders in the US much weaker than expected,

German consumer confidence a tick lower - but that was before these terrible attacks, whioch could have a ( most probably: temporary ) negative impact in the next round of numbers.

Fortescue - amazing! Quarterly out today....record production was known anyway, but costs came in at 13.10 US$/t for the month of June, despite higehr A$ vs US$! This is the best managed resourecs company I know, alongside Evolution - but obviously, on a different scale. They are producing 165-170 mill t this year, at costs of about 12-13 US$/t ( guidance ) - in the last Quarter, they received also a better than expected 49 US$/t for their slightly inferior product! Freight is about 4-4.50 US$/t to China, and sustaining capital is about 2$/t - so total cash costs at arrival in China will be below 20 US$/t! That is a fantastic result, and as I said earlier - they are paying off debt in frentic speed, and dividends will grow substantially over the years. This is all happening at a time, when BHP and RIO are not- or just achieving their production guidance, and as Gina Finehart´s new mine is having some problems as well. The iron ore price is trading at 58 US$ - but I tend to agree with basically all analysts, that this is unsustainable. All 4 major iron ore producers are generating fantastic returns at the current price....it just has to come down! This is the only thing prveneting me from owning a pile of FMG!

Perseus - their Quarterly was a touch worse than negative expectations, in my opinion. But this is obviously a company, which is going through a difficult time: Grade problems are slowly but surely left behind, the relocation of existing housing is progressing and will be finished by the end of this year, and lastly, cutbacks/pre-stripping of new orebodies will gradually be finished as well. All these are erasons for the current, very high costs, and will largely be over and done with by the end of this year. Company guidance is unchanged, and if you believe them ( I largely do, except for the odd little surprise on the way you tend to have in Africa ), this is one of the evry few stocks, which have upside from the current share price, if the goldprice is not changing much. Macquarie have a price target of 90ct, Cannacord have 1.05$. I think without any help from the gold price, we might need 2-3 years for these prices to be reached.But that´s much betetr value than most established producers, which probably rather have 10-20% downside at unchanged gold price!

Have a nice evening,