Market Update

General - Regis - Peak - Crusader - Oceana

Good afternoon

Theresa May continuing to be grilled by hardline Brexiters, and an oppositiojn, which tends to ask for a new vote....has to attend a NATO meeting, which could be tumultous, depending on the mood of Mr. Trump, and will host Mr.Trump in the UK later this week.....I am not sure, how these politicians can survive without being on drugs!

The Thai soccer team is out!! Fantastically brave of those divers, doctors etc!!!

Equities are having another good day, and metals, which were weaker for most of the day, are creeping towards unchanged.

Goldman´s are forecasting a copper price of 7.300 in 3 month, 7.500 in 6 month, and 8.000 US$ in 12 month time. That would be wonderful....It looks as if the current, low price might be a little distortet by massive selling ( liquidation? ) of a Chinese, speculative position by one single market player. He probably inflated the market a few weeks ago - now the opposite!

Denhamp Capital, a 9 bill$ private equity fund, have raised 550 Mill US$ for their first mining fund. They are seeing many opportunites, especially in base metal projects/companies

Regis Resources - closed the last Quarter with 40 mill$ increased net-cash position of 208 mill A$. Second best Quarterly production of 92.000oz, to end the year with 361.000 oz and at the top end of guidance. They are doing what is their part to justify the high share price! Interesting comment today from Evolution, who said, that investment in the top Australian producers from domestic, general institutions is increasing, based on the top performance of most ASX 200 gold producers except for Newcrest. They need to be there - hence the rally is feeding the rally! Makes sense to me - but still does not make the faboulous 5 cheap for me!

Peak Resources - they moved one step further and secured ( via an option agreement for up to 3 years ) a large site at the English port Teeside for their rare earth separation plant, from a government body. The site gives Peak fantastic infrastructure, access to low cost chemicals and a highly skilled workforce, as well as Tax Incentives from the government. Certainly a positive step - let´s hope, that the Tanzanian government does also see this!

Crusader - had earlier reported , that they had sold the irone ore mine Posse for approx 3 mill$, of which about 1 Mill got paid imemdiately, and the reminder over 13 instalments, starting in November 2018. It now looks like the buyer does not honor this deal - at least Crusader are taking them to court. Distraction is never good, and it will probably cost them money...and a big question mark on the payment...not good for a company with limited cash...

Oceanagold - reported more excellent underground drilling results from Waihi in New Zealand - not for the first time. I think a mine life extension is highly probable here. The CEO, Mick Wilkes, took a board position in Kingston Resources today, which is exploring the old Mine Misima in PNG. Not sure, why he did it - in any case, he must like it!

Have a nice evening!

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General - Apollo Minerals - Independence - Dacian

Good afternoon

I fear all readers bar one have to concentrate on the market again, as we have all lost it in the World Championship! Good luck to him!

Following strong numbers for Industrial Production and Factory orders, German exports also increased by more than expected in May.

The English Brexit-Minister Davis, a hardliner, resigns.

Equities as well as metals rebounding today - Trump did not Tweet anything on the weekend! Probably spending some time with Melania! Gold also strong - the compelx is being helped by a weaker US$

Merrill Lynch don´t like Cobalt and Lithium, expecting a slower than expected ramp up of EV-production over the next few years.

Wood Mackenzie, on the other hand, are expecting a nickel price of 28.700$/t in 2022! That´s equivalent to about 16.50 A$/lb and would see my darling Panoramic generate approximately 270 Mill A$/year!

Apollo Minerals - are making some progress at their French tungsten-gold mine, Couflens. Safety and Health risk-assessments have been completed. Ground conditions are axcellent, and the wide drives are in good condition. Poer line is only 1 km away, and water access has also been secured. One venitaltion fan will now be established to enable French authorities to let AON start with drilling. Nothing is quick in mining -lets hope, that the drilling approval does not take too much time. As everybody goes on holidays in France in August - and in the meantime, they might win the soccer championship! - I think it might take until some time in September.

Independence Group - not exactly sure how many disappointments we have sen from them - but many! Production during the last Quarter fell short for Tropicana ( gold ), as well as the all-important Nova Nickel Mine. The stock has been doing relatively well, because of the rare nickel exposure - but this is just the only , positive thing I can say about them. For Panoramic ( not in production again as yet ) to trade at similar multiples, the stock would have to go up by more than 100% .

Dacian - went some way today to justify their market cap, by announcing some excellent drilling results from Cameron Well, A drill hole showed 99m at 3.1g gold and ended at 158 m in mineralisation. Another one hit 49m with 2.6g. This is certainly the stuff needed to increase mine life of their operation, which had started production a few month ago and is ramping up to full production now and over the next few month.

Have a nice week!

Schröder Equities GmbH

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80538 München

Tel. +49-89-4613440-0

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eingetragen im HR München, HRB 166985

Geschäftsführer: Wilhelm Schröder

General - Dacian - St Barbara

Good afternoon

Industrial Production in Germany stronger than expected ...Labor data in the US without clear direction

Metals are fighting the tide, which is clearly aginst them! They are seen currently as the prime victim of the trade war.

Nickel Pig Iron production in China keeps on falling...

The Queen is having coffee with Trump next week...I would love to look behind her fassade!

St Barbara - amazing - these guys surprise more or less every Quarter - the last one was a new record, with fantastic production from Gwalia ( grades were stunning at 13.4g ) and Simberi also very strong. Full Quarterly will be released later - but cash on hand of 344 mill vs 262 mill 3 month earlier is indicating extremely strong cost performance. Incredible...and nevertheless - stock is all but cheap. They could/should announce a very nice dividend next month.

Dacian - production report for their first Quarter...ramping up should be finished by the end of this year ( which sound s a bit conservative to me ). Their brand-new mine produced 34.000oz in the Quarter, and company has kept guidance of 180-210.000 oz at 1000 A$ AISC for the financial year just started unchanged. Current net debt is about 100 mill A$, giving them an EV of 700 Mill A$. 3 mill oz of resources - 1.2 mill ounces of reserves, with a very high chance to add to the reserves, and probably also resources. Next resource statement in July - next reserve statement a few month later.

The stock is fairly priced, in my opinion.

Have a nice weekend!

General - Perseus - Resolute - Breaker - Metro Mining

Good afternoon

jobs numbers in the States a little weaker than expected, while Factor Orders in Germany were much stronger than expected.

Goldman´s reaffirm their view, that now is a good time to buy metals, as even a war on tariffs would not substantially reduce demand. let´s hope, that they are right! I am not so sure!

The American Ambassador to Germany has a meeting with thetop bosses of the German car industry and reportedly has suggested, that all tariffs - for German cars in the US, and vice versa - will be abandoned. Once a gain, a surprising move - and highly unusual to have this suggested by an ambassador....Be that as it may - a solution like that would be very positzive. German car stocks up quite strongly today...metals also a little better, and a relieve-rally in European equities today.

Resolute - following on from the positive, updated feasibility study the other day, the company announced some excellent drilling results from their near-mine underground project Nafolo, as well as from Tabakoroni, which is hoped for to be a source of oxide ore in the future, 35 km away from Syama. The latter delivered an intersection of 5m at 493 g from 167m !! Clearly good news ....stock closed at a 15 month- high. It now looks pretty sexy on the charts as well!

Perseus - early production update...Edikan going well, and Sissingue going very well! This ahs been a record Quarter for the company, and the second best Quarter from Edikan. If we will see more of the same, the big target of financing Yaoure from cash flow and debt only is getting closer. Stock had a nice move today - but the 100$-oz retreat of the gold price since mid-April is clearly hurting a highcost producer like PRU. More info will come with the full Quarterly Report.

Breaker - since announcing the disappointing 622.000 oz resource in April, they have twice announced some excellent drilling results. Especially teh latest report from mid-June has been excellent, with some long high grade intersections, mainly from outside of the current resource. The stock is till in the sin-binn...but it´s consolidating now in the mid-twenties, and I think the next move might be up again - assumed more, nice drilling results. They are still drilling extremely actively, spending about 1 mill / month on drilling. I think one should start accumulating this one again.

Metro Mining - surprisingly, they wre a little weaker ove rthe last two days - even though they came out with a strong production update yesterday. Monthly mining is going up strongly, monthly shipping as well, and the last ship has been loaded in record time. Clearly, the teething problems seem to be behind the company, and the recent placement at 20ct has put them on more than a sound footing. As usual in these situations, the company probably raised much more than would have been needed, accounting for all sort of potential problems, especially a slower than expected ramp-up of spot sales. I think everything is going very well here now, and the share price is not showing this as yet. Good time to accumulate

Have a nice evening

Schröder Equities GmbH

Seitzstr.7a

80538 München

Tel. +49-89-4613440-0

Fax +49-89-4613440-10

email: wschroeder@schroeder-equities.com

website: www.schroeder-equities.com

eingetragen im HR München, HRB 166985

Geschäftsführer: Wilhelm Schröder

Genex Power

Good afternoon

metals are not looking good, once again...Investors are starting to seriously worry about a trade-war induced recession. Thank you, Mr. Trump! Nickel down more than 2%, copper more than 1.5%. Oil is holding up - again, thank you Mr.Trump for the Iran-trouble!

Glencore is in sight of the US-prosecutor....I guess their activity in weird countries would have been difficult without any "favours"....poor Ivan Glasenberg...very unpleasant situation!

Genex Power - I just cannot believe, that this thing is still trading at 30ct! Receiving 516 mill A$ form a government-run fund for up to 25 years, and sub 4% interest - and even more important: As subordinated debt! Respected Broker Euroz have recently increased their share price target to 80ct - and their underlying valuation to 1,05 A$...yet this thing is substantially desrisked now, while it´strading at an unchanged 30ct! I completely agree with Euroz - the full financing is more or elss a formality now. The main step to take: An off-take agreement with a blue-chip electricity retailer. I could understand the markets reluctance, if this would be a mining project in Spain, fighting NGO´s, the bureaucrats, and the government! But this is a project as green as it gets, with strongly demonstrated government support, and strong economic need, in a great country!

There have been rumours around about a line of stock overhanging the market - and looking at the stock, this must be right, as it´s the only, sensible explanation for this share price. That´s great - it gives us small boys the chance to gobble up some stock quietly and cheap! No reason to pay up here - but a great time to accumulate. If somebody wants research on it - I might find some for you - just let me know. No Trump, no trade war, no smallish recession should have an impact on this story - the only potential negative would be very strongly rising interest rates in the short term, or a substantially weaker A$ ( as we are Sfr or Euro-investors ).

Have a nice evening