Market Update

General- Chalice/Liontown

Good afternoon

Oil continues to normalize….Brent is currently back up through 30 US$, and the 12-month future at 37 US$….still, these are no prices to incentivise the big boys to spend money!

Equities continue their march…it looks like Friday´s setback was a short aberration! Every fundmanager, every strategist you read abou, is calling for a more or less severe , second leg….and conventional wisdom tells you, that they are right! So I am continuing to take the top off - increasing m,y cash position very slowly. But nobody can afford not to ride out this rally, and cash is burning a hole into many pockets!

Gold ETF´s have had anotehr day of strong inflow. While I am bullish in the medium term on gold, I am also here waiting for a correction, which does not seem to eventuate!

Chalice - have drilled another hole, 190 m from their discovery hole, which has most of the right rocks, pointing to big intersections with moderate grades of PGM´s in it. The limits and the size of their find are obviously very hard to determine at this early stage - but it has all the hallmarks of a large, moderate grade resource - potentially 100millt of ore or more. Still too early not to be invested here! Perhaps our old friends Liontown are a good way to play the excitement? They also have nice ground in the area, and the company believes, that they also have the right geology - and I think we all agree, that this stock could be worth 20- or 30ct, if the electric vehicle industry takes off, and lithium will be fashionable again….Kind of s speculation with a long term net…But this is certainly even earlier days than Chalice

Have a nice evening!

WS

Schröder Equities GmbH

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eingetragen im HR München, HRB 166985

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The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by

Osino - Perseus - Panoramic

Good afternoon

following a quite heavy setback on Friday, when everybody in Europe was on holidays, European equities played cat up today. But US equities seem to stabilize today - Nasdaq is even up by late afternoon my time, lead by Amazon, which is recovering today.

Base metals are slightly stronger, and Gold has crept up through 1700 again - gold ETF holdings reached yet another high on Friday.

Very weak Factory Orders and Durable Goods Orders in the US - as you would expect!

There really has not been much news today…

Osino Resources - as Namibia has lifted some corona-restrictions, the company can continue with it´s 20.000m drilling program at Twin Hills, which the company hopes will lead to the first resource estimate. Only 4 holes had been drileld, before the program was stopped in late March. Osino hope to get a first resource substantially above 1 mill ounces late this year.

Perseus - is the prime contender to be added to the ASX 200 Index, Australia´s most important Index.

Panoramic - need more time to finish their operational review, and financial restructuring - stock will return now to the board on the 22nd of May. I think talk with cornerstone investors need a little longer, as does operational planning. or perhaps - and I am speculating here - talk with corporate investors need more time?

I fear not much to add!

have a nice evening

WS

General - Prairie - Graphex - Newcrest - Tietto - Breaker - Paringa

Good afternoon

oil is very strong again today…traffic number from major cities in China are just about back to pre-corona levels, US demand for petrol has risen significantly, and we are back to the odd traffic jam in Germany as well…so financial players are joining in for demand as well!

Facebook with a top result after market last night, as was Microsoft,, as was Tesla as was Microsoft! US tech is shooting the lights out, again - and Amazon to report tonight after the market close in N.Y.

Royal Dutch Shell has taken 2/3 of their diividend -the first cut since WW II !! That is spooking the market in Europe today, as is a lot of bad headlines as to the state of the various economies. Ids this mightyful rally coming to an end in equities? It seems that a raft of very strong corporate results from major US-firms cannot prevent the market from coming under pressure today. Perhaps Amazon can save the day!

The newest idea of Mr.Trump is, that China only mismanaged the corona outbreak to make him look bad and making re-election difficult….

Base metals are under pressure, down roughly 1% , but gold is trying to firm up again…big 400.000 oz inflow into ETF´s yesterday, following a few smallish increases ove the previous 2-3 days. But with the arrival of US-investors, gold is also coming under some pressure as I am leaving

A myriad of Quarterlies out today - but most companies had reported important news during the Quarter already.

Paringa - another difficult Quarter for them, even though it was improved from the previous one. As you know, their US-subsidiary is under Chaper 11 and they will auction the assets in mid-june…I doubt, wheather there will be much left for us shareholders…

Breaker - the company announced some high grade results from widely spaced drilling for underground extensions. 1.8m with 13g / 2.5m with 11 g and 2.5m with 14g from 440m to 580m are certainly good news, and give us a hint, that the resource is extending further down - but I am not sure how tangible tehse results are. Otherwise, the company announced some lower grade drilling results, trying to extend the resource footprint. All fine and good - but not really game changing!

Prairie Mining - they are still assessing the chances of taking Poland to court - well, they have done this for some time now! They claim, that no discussions have taken place with JSW as well. All in all, pretty disappointing Quarterly. I still have my shareholding - but I am very uninspired!

Tietto - they have had a very busy Quarter, without much interference from corona. Lot´s of drilling results have been reported during the Quarter. 13.8 mill$ cash left at the end of the Quarter, after spending 1.6 mill A$ in drilling. They should have 5 Quarters left, before they run out of money…Lot´s of targets left to drill, and I have no doubt, that they will increase resources by the time they report the new estimate some time in the Sept-Quarter. - I guess by quiet a nice amount. There is a lot of reason to continue drilling at full speed, and tehy are continuing to do that with 5 company-owned drilling rigs. Ivory Coast will have elections this year, I hope halfway free of trouble. Otherwise, we will have more fun here!

Graphex - they are still suspended. Since the large private equity investor has withdrawn it´s support for the mine financing, things are obviously very difficult. The comnpany has a 5 mill$ loan with them, and I think they are trying to ringfence that loan to the project, to free up other company activities, while retaining an interest in Chilao. I do not blame management here - a mixture of bad luck, capex increases, country problems in Tanzania and external issues like trade war and corona have made things really hard for them. We will have to wait for further news, once the suspension is lifting!

Newcrest - are raising 1.1 bill A$! That´s very much a surprise…they are buiyng the Fruta del Norte debt , owed by Lundin Mining, in which NCM already have a signicifant stake. But that is only worth something like a good 50% of the placement….the rest seems to be earmarked for other projects. Perhaps a takeover of Solgold coming?? They claim, that tehy are in growth phase…well, where is that growth? Perhaps in a few years time - but nothing on the halfway immediate horizon?! They have announced a number of excellent intersections for gold/copper from Haverion in JV with Greatland - but I am sue, that many shareholder sill be p…ed off ! At a time, when tehy expect to reap the rewards from an investment in a gold miner, these guys are raising money! The crazy thing is, that quite a few shareholders will like that - using the opportunity of a discount to invest in gold, of which most people don´t have enough. No reason still to own Newcrest…They also lost the Special Mining Lease for Porgera in PNG a few days ago - not auguring very well for their relationship with PNG government - in that country, tehy have their second most asset, Lihir!! Year-to-date production was down at every mine so far, with costs up by nearly 20%….

Have a nice evning!

WS

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

 

The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by

General - West African - Metro - Oklo - Panoramic

Good afternoon

and here we go again! Equities up! Google with stunning numbers is dragging markets higher! Also, the fact that Gilead´s drug does not seem to be useless, is used as an excuse to drive equities higher! NASDAQ ist just 1% below the level from 31.12.2019!!

And gold seems to stay above 1700 US$ - but the strong A$ is not helping the A$ gold, but it´s holding above 2600 A$/oz…

Base metals are also a little stronger, and oil is jumping today

West African - announced a stunning deal today! Aquired B2Gold´s 1.1 mill oz resource in just 14km distance, grading 2,1 g - but at this stage, it´s only inferred. WAF paid 10 mill US upfront, 10 Mill once feasibility study in finished or in 2 years, and 25 mill from production royalties. Even if only half of this resource will convert to reserves, this transaction will increase mine life to something like 10 years, and by replacing sub 1,5g gram material with say 2g, it will also increase yearly production! And there is a lot of exploration potential!

It shows you the worth of an existing operation, when you can add value of buying resources nearby!! The stock has at least 1$ written all over it ! One experienced mining guy in Australia commented today: They are probably on their way to a 1 billA$ company!

Metro Mining - Quarterly out today…production only started 2.4. on one shift, and a week later, on double shift. Operation is going well and according to plan. But the company spends a lot of time outlining the risks of the bauxite market…alumina has been weak, hence the refineries are trying to put pressure on the bauxite producers. Freight rates are well down, but Guinea-producers, having dramatically more distance, are profiting more than MMI from it. Let´s wait, how the bauxite market will pan out over the next few month…The company probably saves 2$ per t in freight, and another 2-3 $/t they receive more due to the A$ being weaker than last year. But that is probably not enough in the moment at least to make up for bauxite prices, which are probably in the mid-forties rather than 51-52 as last year. So while operationally all is going very well, prices received are not so good! Still, for everybody having the view that that world will come back to normal over the enxt 12-18 month, this is a cheap stock! I am holding my large position - tremendous medium term value here!

Oklo - became a victim of their recent success! Strong drilling results, extending the SK1 North resource further at depth, with good intersections - but not as spectacular as the recent numbers. Assays from 18 drill holes are still oustanding,a nd drilling is continuing. The exploration program has been extended, due to the recent success, and hence the first resource estimate will take another 3 month or so. The wet season is starting in July, and the company wants to continue drilling until then.

Panoramic - published a bad Quarterly, but it´s pretty meaningless. It looks liek tehy have started mining from Savannah North stopes only very late in the Quarter. Infill- and grade control drilling results have been pretty good, and there is no reason to believe, that the Savannah North ore body is not performing as planned. That´s the main takewaway for me…We will have to wait for the planned announcement re financial restructuring, and operational plan going forward, which is planned for before 5th of May - so late next week.

Have a nice evening

WS

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

 

The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by

General - Northern Star - Perseus - Saracen - Genex - St Barbara

Good afternoon

equities are running and running and running…and just about everything you read is: Worst recession since 2029, re-test of recent lows expected etc etc….It tells me, that there is an avalanche of cash around, which is waiting for the pullback to be deployed. Will this happen? Your instincts tell you, that it will - the reality is, that markets are racing !

The gold price saw a temporary retreat this morning, falling to 1693 US$ in Asian trading…I admit, that I sold a few gold shares today - but it already looks like a mistake. Holdings of Gold ETF´s had fallen for the first time in weeks - but the quick recovery of gold during the day tells me, that this has been very temporary. We will find out tomorrow! I would not have been surprised to see say another 30$ down or so in the gold price…but am certainly very happy to be probably proved wrong!

Well, I have been writing the above in the early afternoon - by 4 pm, the arrival of US-players has driven the gold price down to 1693 again!

Base metals are edging higher, and oil as well today. Very high volatility persists, as the market is very much distorted by the activity of oil ETF´s and other financial players.

Northern Star - the long awaited Quarterly out today, and it was bad indeed. Even though NST have underperformed this year, I would not have been surprised about a much weaker price. In any case, it should cement the recent underperformance. But the Quarterly certainly raises the question, wheather NST´s assets have been driven a bit too hard in the past. Production was down at every Australian operation, with costs up…except for Pogo in North America, which had a reasonable positive Quarter. NST is the only Australian gold miner I can see, which have stated, that production is down because of corona-issues….I think this cannot be the real reason…AISC of just about 1600 A$/oz are lightyears behind Evolution for example…and hedging ahs been deferred to harvest cash now. It results in NST having hedging in place for 215.000 oz at 2035 A$ in the June 21 Half, and 261.000 oz at 2075 A$/oz in the Dec 21 Half… that´s big hedging about 600 A$/oz below the current price and will hurt big time. Hedging thereafter is much smaller at 54.000 oz for two more Halfs…I think NST have under-delivered on reduced expectations…..and hence, I will think they could underperform still from here until they show real signs of improvement.

Perseus - this was a bad Quarter as well! Production was down from 69.100 oz in the previous Quarter, to 57.900 oz this Quarter, while AISC were 1083 US$, some 12% higehr than previous Quarter. The big difference is from Edikan: 38.000oz at 1242 US$ AISC vs 48.000oz at 1035 US$ /oz AISC in the Dec-Quarter. The sole reason for this: recovery fell from 85% to 61%! How could this happen? The company tried to maximise production by mining mainly form a pit, which contains higher gold grades - only to discover, that it impacted very badly on the recovery! In future, only 15% of this ore type will be blended into the mill feed. By the end of the Quarter, recoveries were nearly back to normal. By the end of the Quarter, PRU had a net cash position of 15 mill$ - not that bad, being in the middle of cosntruction of Yaoure, which was 52% complete.

The current Quarter should be back to something like 80.000oz of production, and costs should also fall significantly. The hedge position was bad enough, but at 22% of production for the next 2 years not a drama. Exploration delivered quite a few ore garde results, but nothing terribly exciting as far as I can see.

Overall, this was a Quarter to quickly forget - and it looks like the company can fully rehabilitate it´s image of a consistent performer in the current Quarter. PRU reporeted about many small issues surrounding the impact of corona - but so far, the operations have not been impacted, really. Jeff Quartermain mentioned, that the expats have been on roster for 12 weeks now - travel restrictions keep them at the mine sites! At some stage, these guys will be pretty sick & tired , which could impact on operations from a safety- as well as productivity perspective. The company just have to live with this risk for the time being…

So - bad Quarter, not without challenges - but no drama and well explained!

Interesting comments re roster and expats - this could impact on other miners in Western Africa as well. I am sure, that there are many guys hoping for an end of travel restrictions!

Genex - their major institutional shareholder has increased his holding again! Looks like he is full of confidence, which I am as well - but he is large enough to ensure, that the forthcoming discussions with possible incoming equity partners are not made difficult by a depressed share price ( well having said this, 19,5ct is probably still somewhat depressed - but it´s better than the recent 13-14ct!

St Barbara continues to slightly disappoint…production was down a little, driven by Gwalia, their deep underground mine. 39700 oz at 1556 A$/oz AISC is not where they want to be! The company is guiding for production at the lower end of guidance, at costs at the upper end…The ventilation shaft has taken longer than expected and will only be finished in the current Quarter, 2-3 month late. Guidance for the recently aquired Atlantic Gold operations has been left unchanged. While the share price has fallen quite a bit since aquiring Atlantic, prodution issues at home at a time of big capital spend for Atlantic are an issue, in my opinion…debt is slowly but surely becoming an issue of the next year or two. I can still not feel any rush to buy them…even though relatively performance is tempting. But it´s too early - time is on your side here I think.

Saracen - just very quickly on them…they continue to shoot the lights out! Another record Quarter…158.000 oz at AISC of 1133 A$/oz! Company finished the Quarter with a 106 mill A$ cash build - before voluntary debt repayments. Net debt now only 20 mill A$, having bought 50% of the Golden Mile only recently ( when the A$ gold price was 400$ lower! ). They will be ready for aquisition again by the end of the year - Bellevue, I can see you coming SAR´s way!?

Have a nice evening

WS

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

 

The information contained in this communication is confidential and is intended only for the use of the addressee. Unauthorised use, disclosure or copying is strictly prohibited. If you have received this communication in error, please delete it and notify us by telephone at +49-89-4613440-0, by fax at +49-89-4613440-10 or by e-mail at wschroeder@schroeder-equities.com immediately. Please note that this communication does not constitute and may not be construed as investment advice and / or referral to buy or sell financial instruments. Unless specified otherwise, the views expressed in this communication are solely subjective notions of the individual sender and / or the entity or individual stated as the author of any information submitted. Performance in the past may in no case be considered as an indication for future performance. Please also note that Schröder Equities GmbH and / or its officers or employees may have interests in financial instruments referred to this communication. A current list of shareholdings can be emailed on request. Furthermore, our clients are hereby informed that Schröder Equities GmbH renders advisory services to Nestor Australien Fonds, an investment fund administered by Nestor Investment Management S.A. Luxemburg. Please also note that e-mails can be intercepted by