Market Update

General - Perseus - Resolute

Good afternoon

not much was happening in equities today, until the US market opened weaker…metals except for zinc are strong ( copper +1,3% and nickel + 1.7%, as LME stocks continue falling ), US$ slightly weaker - helping gold back up to 1300 US$

China continues to buy gold…

Perseus - announces corporate debt facility of 150 mill US$ with three banks. The company believes, that this will be sufficient to finance the 265 Mill US pre-production capex for Yaoure. Cash position at Quarter end is a net 36 mill US$. If all goes according to plan, they will be ok…but I´s rather see the majority of the 44ct options being exercised on or before 19th of April, to be on the save side! But with the share price at 48ct, they will be ok! First gold is now expected in December 2020…Obviously, there will be some dilution from the options - but I am very happy to take that vs a tight funding structure!

Resolute - a mixed Quarterly. Production from Syama was excellent - 98.100 oz vs 74.000 in the previous Quarter - but of those, only 13.300 were from Syama underground. The balance was from the recently started, nearby oxide deposit, which has limited mine life. The company states, that the increased cash flow from this orebody has given them the opportunity to speed up development at Syama Underground, at the cost of production. To me, that sounds a bit of an excuse, as commercial production of it has been pushed out to the end of 2019 at the same time. There certainly is some risk with this highly automated, sub-level cave mine, being the company´s first such mine - and this risk has not been mitigated as yet. In my opinion, it has even increased a little ( by extending the target for commercial production ). In so far, I am surprised about the strong performance today. Not a desaster at all - but lingering doubts….Full Quarterly is coming out later this month - perhaps we will get some more clues from it. Production of their much smaller mine in Queensland has been impacted by wet weather during the Quarter.

Panoramic - have strengthened their management team with the new role of COO, for which they employed a very experienced guy. I think the range of small hickups they experienced earlier on in the comissioning phase ( now largely - but not fully - behind the company ) made them think of some additional help. Mr. Timler has been the MD of Medusa Mining in his previous job ( from 1.1.17-30.9.2018 ). I have looked at a few announcements, and he seems to have done a good job there.

have a nice evening

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General - Perseus - Prairie - Cassini - Antipa - Breaker

Good afternoon

more progress on trade talks….German Industrial output in Feb strong : manufaturing down a little, but construction is very strong + 6.8%

Palladium/Platinum-switch continues…base metals stronger except for copper. Cobat looks like it has found a bottom, finally.

Germany is thinking about increasing subsidies for EV´s, mainly by accelerated depreciation of company cars

Equities unchanged

We are currently seeing quite a few supply-disruptions in copper..especially Las Bambas in Peru , where roads are being blocked, is gradually driving down production.

Antipa - I was pretty disappointed yesterday by the fact, that they had to offer a steep discount on a placement ( at 1.9ct ), for a relatively small 3 mill$ placement. But placement size got increased to 5.1 mill$, which certainly is a good sign. As RIO is paying for exploration on the JV-ground, this amount gives AZY a very reasonable amount of money to continue drilling a range of prospects within their exciting ground position in the Paterson province in WA. In the meantime it has been reported, that RIO might have extended the strike length of their discovery adjacent to the west of AZY´s ground to potentially 3.3 km - that´s more than doubling it, if true. But no more details have been released as yet by RIO.

Breaker - the company should be on target to announce a resource-increase at latest by the end of May, potentially earlier. Given recent drilling results, a substantial increase should be a done deal - I am hoping for another 300-400.000 oz. The company also continues to work on the prefeasibility-study - I guess a release also within 2-3 month. I could imgaine, that BRB will try to get as much info as possible out there, to enable a capital raise in may/June. They are spending around 3,5 mill A$ per Quarter on their very active drilling programm….nothing wrong with that! Even though the stock might be trading cum-placement to a degree, I would use the current , quite period to accumulate stock. The old resource from September is 1.1 mill oz and was increased then by 500.000 oz….it´s certainly possible, that they will do that again. If they deliver, it will put at rest the last doubters on the stock! It´s too early to tell, before the pre-feasibility has been announced…but I think 120-140.000 oz p.a. over an initial 6-7 years would not sound all that unreasonable ! And as we all know, the prospect is still open in all directions.

Cassini Resources - the company raised 7 mill A$ at 10ct incl to some institutions, and a Chinese corner stone investor, who is in talks with CZI about an offtake-agreement as well. As OZ Minerals is paying for all exploration on the main West Musgrave nickel/copper project, this should enable Cassini to do some pretty meaningful exploration on their other projects. The OZL-managed pre-feasibility should be out by the end of the current Quarter - including resource increase. So plenty of big news in the pipeline here…

Prairie Mining - suspended in Australia, pending a release on legal proceedings in Poland with regards to their Jan Karski mine. The stock is trading in Poland, though - strong turnover and currently at 44ct-equivalent. I dare to say, that the news will be good news!

Perseus - short production update before the company will release their full Quarterly by mid-month. Production of 67.000oz ( of which 44.700 from Edikan ) is indicating, that thehalf-year guidance of 130-150.000 oz will be achieved, pending any nasty surprises. The stock continues to trade above the warrant exercise price of 44ct , ensuring, that the Yaoure projct can be fully financed by debt + cash flow, without the need to raise equity. The company claimes, that financing would still be ok even without the options - but I am sure, that things are much more relaxed with the additional equity.

Have a nice weekend

Schröder Equities GmbH

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Geschäftsführer: Wilhelm Schröder

General - Aurelia - Liontown - Emerald - Evolution - Syrah - Panoramic

Good afternoon

German Factory Orders very weak today…Germany is not doing well at all - mainly the consumer is holding up oureconomy these days. Trade war, BREXIT and ongoing problems in the car industry are not helping at all!!

Jobs numbers in the States were much better than expected.

LME copper stocks saw an unusually large inflow today - the other´s were down again. Base metals are weaker today, giving up about 1% and 1.8% for nickel.

Gold does not like the strong economic numbers today, which led to renewed strength of the US$

Looks like heavy switching going on from Palladium to Platinum.

Goldman´s recommeded to take some profits in iron ore - I guess that lead to some selling of the iron ore majors. Not much change in equities and currencies.

Aurelia Metals - this highflyer was included in the GDXJ the other day - the resulting buying was matched by Glencore, who sold their entire stake in the company. AMI has been a great performer, which I missed - driven by a turnaround of their own mine, and a ( very lucky? ) aquisition. I would not really buy them at current levels - the next two-three Quarterlies might give a better indication how sustainable last years excellent production metrics really are.

Liontown - more strong news from their Kathleen Valley lithium asset - very good drilling results, some at 1.7% lithium. It looks like they will add substantially to their current resource of 21 millt of 1,4% Li2O. The company has stated a new exploration target of 15-22 millt at 1.2-1.5% Li2O. This is only one of two exciting projects they have - and since the recent rights-issue they have enough cash to advance thos projects and continue drilling. I realize, that there is enough lithium around for now - but that could well change over the next 3-4 years, and it will take ( my guess ) another year of resource + feasibility studies at least, 6 month for financing, and 12-15 month of construction - so this project might have pretty good timing! The company issued results of a scoping study, which values the project at 400 mill A$+. There are many i´s and when´s etc here - but the market cap of 31.5 mill A$ is very attractive. Tim Goyder as Chairman, Craig Williams ( ex-Equinox Minerals ) are two top-class guys involved here. The company has finished the 7 mill$ capital raising just a few days ago. The shortfall might have put a bit of a cap on the stock - but the 2-day turnover of nearly 40 mill shares will have gone a long way to remove the overhang. Of all the small lithium hopefuls, this is the only one I own…Like in PAGN - the end of a rights issue is the best time to buy generally - and the stock is basically trading at the rights-issue price of 2ct.

Syrah - production update out today. For the first time since starting production, they have hit/exceeded their guidance - in terms of production, sales as well as price received. In March, the company produced 19.000t of graphite - this is vs final target production of 250.000t p.a. - so we are getting there slowly but surely. Very pleasing, that recovery at 70% is also ok…The stock ahs been very strong, and not all concerns have been put to side here - but the potential price is big , the market position is excellent, and I would accumulate the stock. Of note is, that Syrah is producing different product to the likes of Black Rock or Graphex, which is good news for them , as those guys will not compete with Syrah, which will be the largest , western world graphite producer with the ability to feed the battery-market with it´s product for some time.

Emerald Resources - the company is in the early stages ( following capital raising of 28 mill$ late in 2018 ) to develope a gold project in Cambodia. Final feasibility study has been completed and showd NPV of 233 mill US$ at a gold price of 1250 US$, using a reserve of 14 millt at 2g to produce 106.000oz p.a. at AISC of 731 US$/oz. The company is currently negotiating full financing of the project. The country is not too bad, and while I think a final placement will be necessary, despite good project economics, I think the stock is worth a good look. The company announced some very good drilling results and might have found the feeder zone of the deposit. Results include 9m with 13g; 32m with 2,75g; 7m with 19g. Additional resources at better grades than reserve grade could have a big impact on the NPV and project economics.

Evolution - company has issued a site visit presentation on Cowal, the main asset of EVN. very impressive, what EVN have done with the mine since aquisition, and are still doing!! Have a look at the website for the presentation - very interesting. Cowal has substantial exploration upside, especially from the recently discovered underground drilling, which could over time replace some lower grade open pit material with high underground grades. The development of the exploration decline has recently started, and drilling from it will start in a couple of month. Could be exciting times for Cowal this year. EVN is officially talking about taking Cowal from 25.000 to 300.000 oz pa for 10 years+ at this stage - but this is largely done, at least on the drawing board. Furtehr exploration success underground could see a very substantial increase to this number. When aquisitions are too expensive, you might as well improve your existing assets and do some near-mine exploration! This is waht my favourite, Australian gold miner is doing!

Panoramic - positive update today on Savannah. Development rates are up by 55% vs February / Mining rates up by 60%; Ore milled up by 125% ; Metals recoveries improving to +80% ; second shipment gone on 22.3 and the third is scheduled for 22.4. While the comany is not where they want to have it - recoveries, development, mining + milling will improve further, this is a big improvement vs the terrible month of February, which made the capital raising necessary. The drilling of the ventilation shaft has not progressed as quickly as hoped for, and the company now expects the shaft to be finished by year end. I think this is what most analysts had pencilled in anyway. In any case - strong improvement, and furtehr initiatives have been taken or are being planned to drive Savannah into full swing. I think the little drama is behind us now. I also believe, that the company is working to do something with it´s listed subsidiary Horizon. The strong A$ gold price opens up some options like toll treating etc.. So some news to come hopefully here as well within a month or two.

As I said the otehr day - the rights issue just finished - now is the time to buy…

Have a nice evening

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General - Perseus - Matador ( Giorgetta) - Panoramic

Good afternoon,

Australia posted it´s largest trade surplus on record - obviously driven by iron ore.

bonds are weak again today ( German 10-year is now at 0,00 yield ) , following a set of more positive economic numbers ( European Services PMI pretty strong ) and some hope, that a hard BREXIT can be avoided. In the US, Services PMI is also positive…

Equities are racing, metals as well…nickel stocks fell for 31 days in a row now - at the recent pace, all LME stocks will be gone at the end of the year!

In my opinion, the market has never expected the worst case of a hard BREXIT -and at least for the last few weeks, has also hoped for a halfway positive outcome of the trade negotiations. In so far,the market will be a buy-the rumour / sell-the-fact situation. And the conservative investor should continue to progressively take a few chips of the table.

Quite a few placements today…to mention a few: Antipa Minerals, Cassini Resources….details tomorrow, once publicly announced.Looks like market conditions have improved somewhat, to enable smaller companies to raise some funds.

But I have to say, that there is no real interest in our part of the market. The only stocks running are the blue chips - and they are very much driven by iron ore.

Perseus - Frankling Resources increased their shareholding, mainly by excercising 44ct-options - good news for the company.

Matador Mining - that is interesting. I have never heard of them before, but Mark Clark and Nick Giorgetta acted as cornerstone investors for a 5 mill$ capital raising at 16ct, with a one-for-one free option, three years, exercisable at 23ct…The terms are extremely generous….I thinkw e all would have taken stock in the placement, with 2 very highly regarded mining professionals on board here. I am inclined to bulk at the current price in the market - 26ct - I hate to give that much to the initial investors, even as they are nice guys! But they will have a nice following in the market. I am surprised, that ASIC let´s the company et away with this extreme discount ( certainly incl the options ), without letting small shareholders having a bite via an SPP…The company has a 1 mill oz gold resource in Newfundland, Canada, incl a central resource of 800.000oz at 2.6g. I know nothing about it at this stage - but will certainly watch this stock.market cap is now 22.5 mill A$ incl the placement - undiluted for the options. So not a crazy valuation at all. Perhaps exploration stocks in Canada really are cheap these days….

Panoramic - the rights trading has finished! Nickel continues to run, and most analysts have targets of between 15- and 20.000 US$/t for the next few years. Panoramic will have full production in calendar 2020, and after that, for 7-8 years - most probably much more. Now is the time to buy…technically, all pressure from the rights issue is gone! I am sure, that the various, small hickups are behind us - the only question being, whether full production will be reached by year end, or say 3 month later. This is a risk I can take!

Have a nice evening

Schröder Equities GmbH

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Geschäftsführer: Wilhelm Schröder

General - Fortescue - Lefroy - Strike - Horizon

Good afternoon

Australia´s budget to be back in surplus in the year to 30th of June 2020 - would be just about the only one, together with Germany! Lucky country, once again - coal + iron ore helping big time + a strong labor market. The government is expecting a 7 bill A$ surplus - one caveat: The assumptions are on the positive side!

The market clearly believes, that there is a way out of BREXIT-drama. Well - anotehr day of chaotic parliament sessions is over…and the POM´s so far continue to be against every possible alternative being presented to them…But equities in Europe are strong as a bulll.

Durable Goods Orders in the States were in line with negative expectations.

Base metals are weaker today , especially zinc is retreating from a recent high.

Horizon Gold - released more drilling results from their Altair Zn/Cu discovery, contained within the Gum Creek gold project, which in itself has resources of 1.25 mill oz of gold ( part of which refractory ). The drilii intercepts are very long - 36m with 2,6% Zn / 0,4% Cu - 63m with 2,45% Zn and 0,42% Cu - 30m with 1.9% Zn and 0,34% Cu - but I am hesitant to call theme xciting, as the grades appear sub-economic to me at this point.What is quite exciting, though, is the companies comment: “ the intercepts exhibit …hallmarks of a major, hydrothermal VHMS/SEDEX mineralising event”. It´s early days as yet - but certainly tehre is some promise. I am actually surprided, that the stock is not finding a few friends. Probably a lot of stale bulls in there from the spin-off from Panoramic back in December 2016.

Strike - their JV-partner in the West Australian asset, Warrego, has listed niw via a merger with listed company, Petrel Energy ( which subsequently has been renamed Warrego Energy ). Both companies own 50% each of West Erregulla, but Strike has to fund 11 Mill$ in drilling costs to get there. Analysts value the potential gas field at between 75 mill - and 500 mill A$ - the probability of success is seen as between 20% and 70% - depending on whom you talk to. In any case - this is a real target, and the valuations above are for a 50% stake….so in the case of Strike, this thing could be wort everything from the current market cap of STX, to 35ct/share. What is further interesting is, that the former AWE Managing Director also became a director recently of Warrego. AWE has discovered Waitsia, the West Erregulla look-a-like, which was subsequently taken over by Mitsui Following this hotly contested bidding war, Mitsui increased the reserves of Waitsia by 70%, and made it the 5th largest onshore gas discovery ever in Australia. So for us, long suffering STX shareholders , this is certainly very promising - and of course, Jaws is still pumping and I have not given up on it. Following some initial reservations by myself and otehr shareholders, I have to say, that STX´s MD, Stuart Nicholls, did very well top aquire West Erregulla, plus a lot of additional ground in the immediate neighbourhood via the takeover of UIL Energy.

Lefroy Exploration - I have sporadically written about them in the past. The stock is coming to life of lately. They announced some active drilling to take place shortly at both assets, their fullyowned ground, and also the JV ground with Goldfields, where Goldfields are spending 25 mill A$ to earm their interest ( for memory, 70% ). St.Ives has produced more than 10.5 mill ounces sind the mid-eighties, and is one of the truly worldclass gold mines in Australia. Goldfields have had some very exciting exploration success close to the LEX-JV ground, and I believe have been spending 38 mill A$ in exploration in St.Yves surrounding area last year. So some excitement coming to this sleeper…worth watching LEX!

Fortescue - the worlds No.4 iron ore miner continues to do everything right, I believe. The JV ( 60% FMG, along with some Chinese companies ) will develope the Iron Bridge magnetite deposit for 2.6 bill US$, for first production in 2022. Magnetite has much higher production costs ( Macquqrie believe around 50 US$/t AISC ) , but is much better quality than the normal iron ore ( 67% vs 58-62% ) and deserves a much higehr price than “normal” iron ore. For FMG, this is a good step to improve the average quality of it´s iron ore further, at a time, when they have cash coming out of their ears. At spot for iron ore, FMG should make something like 3 bill A$ in net profits in the current year, and 5 bill in 2019/2020.

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

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eingetragen im HR München, HRB 166985

Geschäftsführer: Wilhelm Schröder