Market Update

General - St.Barbara - Syrah - Horizon Gold

Good afternoon

well we have had the German Unity Day yesterday…sometimes, I have to admit, I am still thinking of whether this was a good thing! Berlin was more fun before, and we did not have that many right-wingers! But to be fair - I guess the relatively large amount of those right-wing radicals is more an expression of the relative numbers of people feeling left behind is larger in the East than the old West! In any case - some of the recent events have been quite disturbing…and Bavarian , provincial elections are approaching, with the AfD expected to get 12% or so - and that´s in the most affluent State of Germany!

US Bonds very weak, tradingat the highest yield since 2011 at 3,20% for the 10 year. Powell likes the economy and believes, that it can grow for some time to come. Initially, teh equity market liked this yesterday, driving the DOW to a new high - today, pessimism for bonds pervails, and equities are pretty weak everywhere.

St Barbara - pre-up production numbers were released today. Co pany produced 98.500 oz - 62.800 from Gwalia, and 35.800 from Simberi. Looks like Gwalia was perhaps a little down on expectations, and Simberi better - but the company leaves guidance for both mines unchanged for a total of 350-375.000oz this financial year. Cash holding increased by 7 mill to 350 mill A$, after paying 37 mill A$ in dividends, tax and furtehr investment in Peel Mining. Solid Quarter, but not fantastic.

Horizon Gold - the affiliate of PAN continues to get some exploration success. The positive results from gold exploration recently, were repeated today from anotehr property, where drilling has hit 43m with 3,7% Zn; 0.6% Cu from 196 m. Old-time drilling results from this property included some nice intersections like 44m with 1,2% Cu from 56m. The company comments, that there good indications for a VHMS-style deposit, which could be pretty bullishh. I have the feeling, that the exploration team is finally getting a good handle on the assets - it does not need all that much to make the Gum Creek Project work, and while they are certainly not there yet, the EV of HRN even after todays rise is only about 8 Mill$. Not much success needed to justify a higher valuation!

Syrah - is back on the board…5 weeks loss of production….not good at all, but should be ok, given the 100 mill$ cash position. ….I think the market will look past this - but today was teh day for the shorts!

Alumina - big action in Alumina stocks today. Norsk Hydro´s large alumina smelter in Brazil will be out of business for quite some tiem - potentially incl most of next year. Our little MMI is little affected, though, as I have learned, that the Chinese local market in alumina ( that´s where they get paid, and according to that price ) is different and has been much more stable anyway.

Have a nice evening!

General - Lynas - Syrah - Antipa - Osino

Good afternoon

since these maniacs in Italy came to government, the 10-year bond has seen a yield increase from 1.8% to 3.35% today - not a bad effort! Italy putting more pressure on the Euro today. The relatively strong PMI for the US yesterday did not help the Euro, either.

Metals started the day weaker, but have recovered throughout the day to be about unchanged now - and as I am finishing this blog, they are all deep green! To be honest - no idea, why!

Lynas - have written an open letter to the Malaysian government, pointing out, that tehy have done everything according to the text book until now, demanding a fair treatment, and asking about details of the parliamantary comission, of which teh comnpany has not heard anything official until now. Could well be, that the stock is cheap now - but I am still a bit too worried about the political side of the story….The past has shown, that not everybody in Malaysia is unemotional about the issue!

Syrah - bad luck comes seldom alone….a fire in parts of their plant has brought operations to a stop, I believe. Nobody injured, but there is clearly some damage. The stock is suspended - I guess until the company can quantify the issues, and especially the time delay. I guess they are very lucky to have completed the recent placement!

Antipa Minerals - more nice results from one of their properties North of Telfer: 45 m with 0,56% copper and some gold/silvr; 10m with 2,05% copper and 4m with 3% copper + always some gold/silver. Strike length defined so far of 150m but open in all directions…AZY have had numerous good results from their various properties in the area…there definitely is something…but the various finds are not yet sufficiently defined. As at 30th of June, AZY had 8 mill$ in cash - but the Sept-Quarter should have seen outflow of 3,3 mill$. So next raising is probably less than 4 month away…These guys are in potential elephant country - that´s why RIO has this very large JV with them - so I would not worry too much about this. The next set of good results should bring them closer to 40 mill$ market cap, I hope.

Osino Resources - my little Canadian spec-investment is making good progress. They are currently establishing highly prospective gold targets which have many similarities with the nearby Otjikoto Mine of B2Gold. OSI have a lot of early-stage work on their hands - that´s definitely a disadvantage. But some smart money is seeing the opportunites - Ross Beaty bought 20% of the company, and I believe quite a few investors are watching the stock with interests. The ground position around the two existing gold mines in Namibia is second to none. I declare my personal interest once again…I am related to the MD. I am in the stock above 40ct…so some way to go for me to be in the money! I hope and believe that Ross Beaty can live up to his past investment performance!

Have a nice evening!

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General - Metro Mining - Regis - Crusader

Good afternoon

Manufacturing PMI for China a little weaker again - only just in growth territory. I am on kids-duty from now - so please check the US PMI yourself, which will be published later this afternoon.

The new NAFTA agreement between US/Mexico/Canada inspires markets positively today. European equities are stronger, metals are seeing some weakness - China not helping I guess

Metro Mining - there has been a large seller throughout September, selling 5.5 mill shares - it appears as they have finished. Aluminium, but especially Alumina- prices holding up very well - the majority of MMI´s sales is priced as a percentage of Alumina, which has been great so far, and is also looking good for the enxt 12 month. Margins should be better than expected at this important first year of production, which consisted mainly of ramping up and fine-tuning. I think in terms of cash flow, this is one of the cheapest, established miners in my universe - might well be the cheapest. The company is still not very well known, and bauxite is also not a widely followed commodity. I think now is the time to buy more, below 20ct.

Regis - have dropped teh takeover bid for Capricorn, as their major shareholder Hawke´s Point has not agreed - their acceptance was one condition of RRL´s bid. Maybe they will come back at a later stage - for now, the deal is off! In my opinion, this asset is certainly worth less on a stand-alone basis. Have Hawke´s POint ( a private equity fund ) have pokered high and lost? Looks that way. For the patient inevstor, CMM is probably approaching buying-levels again. Just makes too much sense for RRL to own this one - even though it´s not a great asset.

Crusader - have run into trouble! Stock was suspended on AIM because tehy have failed to raise fresh equity in September, which seems to be necessary to ensure an orderly operation. Company sais, that they are in discussions with equity-and debt providers, as well as on asset sales. What a desaster! Watch this space….but any of the above actions are very unpleasant, if your back is against the wall - and a bloody big rock in front of your nose!

Unfortunately, not much to report today….

Have a nice evening

Schröder Equities GmbH

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80538 München

Tel. +49-89-4613440-0

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website: www.schroeder-equities.com

eingetragen im HR München, HRB 166985

Geschäftsführer: Wilhelm Schröder

Italy - Zambia - Metals

German CPI rose by 2.2% vs expected 1.9%/ German unemployment at all-time low of 5,1% /…weak US pending home sales….equipment orders in the US weak ex defense, but FED is pretty positive. Second GDP estimate confirms 4.2% growth last Quarter.

BREXIT is getting many headlines - no deal in sight! Some experts believe, that a hard exit could cost the UK 2-4% of growth, while it could cost Europe up to 1%. No winners here! German GDP estimates have been reduced by a well regarded thinktank to 1,7% this year from 2,2%…Italy throwing Europe further into disarray? The heavily indebted country yesterday announced a new budget, planning for a 2.4% deficit - a slap into the face of the European Comission, which only allows 2% at worst. Italian bonds getting a hammering today! Not suprisingly, the Euro is weak today, loosing about 1% against the US. European equities are also weaker - especially banks, on the bank of the Italian “crisis”. Metals are holding very well - especially considered the currency - some are even up a fraction. ! LME stocks continued to fall across the board.

Zambia increases the roaylties on copper , which range from 4-6%, by 1.5% from 1.1.2019. If copper prices move beyond 7.500 US$/t, the royalty will increase to a flat 10%. Zambia is a big producer, FirstQuantum, Barrick and Glencore affected.

As we go into the weekend, the $ has given up some of it´s gains, and metals are strengthening - up by 1% for copper, 1.3% for nickel, and nearly 5% for zinc! Nice finish!

Nothing much from teh micro-side today!

have a good weekend!

General - Sheffield - Syrah - Apollo

Good afternoon

ahead of the rate decision in the States, equity-markets are marginally higher in Europe, as are bonds, as are the metals. All this is happening, as the UN laughes about Trump. I have to say, though, that he reacted pretty cool to that!

Copper premiums for cash delivery in Europe as well as in Asia indicate a tight market, as well as the ever falling LME stocks.. As Bloomberg said today - investors are undecided here to look at the current, strong demand - or at the potential negative effects on world growth from the tariff-war.

Apollo Minerals - have not spoken about them for a while, as nothing much happened! But action is starting now: Following inspections , planning and approvals from authorities, the company is now starting to re-install mining services into the old Salau Tungsten Mine in France. Activities include widening of the portal, installation of Ventilation and cabling, construction of walls and gates within the mine, and removal of waste, piping and any hazards. This will take about two month, and following a final health and safety inspection, the hotly waited exploration programm can start! Hugo Schumann will love it - action, at last…it has taken some time! I have little doubt, that there are many low-hanging fruits there - exploration will get us some good news flow! But probably 3 month to go!

Sheffield - done! The Mining Lease has been granted! The only important thing missing - and that´s probably imminent as well - is the Federal Enviromental Approval - company states, that this should be announced next few days. Then then company will be able to talk the M&A side of things…outright takeover, participation at project level, or going it alone after raising an estimated 130 mill A$ - all possible! We should know by the end of this year! As one analyst pointed out: The project has an NPV of 750 mill A$ in SFX´s hands - in the hands of Iluka or RIO, the NPV could easily double, as their cost of is dramatically cheaper, and they could also double production from day 1, as tehy would easily be able to manage the higher capex. The currently expected mine life is 40 years…

Syrah - another smalls etbakc, even though a small one. Some mining consumables they need could not be delivered as needed, leading to slightly lower production this month than last. Not nice, as they have had their fair share of hickups anyway - but not a big deal, and temporary. The chart is rockbottom - not for widows, but the stock could be a good buy down here.

Have a nice evening