Market Update

General - Tietto - Middle Island - Breaker - Genex - Strike

Good afternoon

several companies eem to make good progress in developing a vaccine against corona…and the FAANGS are driven equity markets higher…Tesla racing like mad….new all time high today…and Microsoft, Amazon, Netflix, Apple and now also Facebook are charging to new highs…amazing! Not to mention paypal, which also is a very large company these days, with more than 200 bill US$ market cap. They are up by about 50% from pre-corona levels…

Payrolls in the US are rising much stronger than the market had been hoping for. Let´s hope, that the massive rise of corona infections in the States does not choke off this early promise!

But new infections in the US and Brazil are surging at an alarming speed!

BHP is scaling down operations at their smallest copper mine in Chile, which produces about 70.000t of copper p.a.. This is no problem - but if it´s a precursor of things to happen in Chile, the impact could be massive!

Base metals are a liitle stronger today across the board, while the gold market came under some pressure following the labor market figures, only to rebound strongly from 1760 US$ to the current 1778 US$/oz. Subsequently, the GDXJ broke above 50 for the first time since 2016 ( when gold was trading at 1370 US$ !!!!) . It might well run into some resistance here.

Tietto - yet announced some more drilling results from deeper down - 3m with 17 g is certainly a very nice intersection! Tietto might have 3 mill ounces shortly,,, and is trading at 190 mill A$ market cap. DEG might have 4 mill oz in Western Australia , for a market cap of of 1.15 bill A$! Where is the value? Easy answer! Tietto continues to do all the right stuff ( and that´s mainly to find more gold! )

Middle Island - that also applies to these guys. Vetran Rick Yeates has been very stubborn in trying to bring his various ore bodies into production. With very little money, frugal management and tight drilling budgets he is getting close to establishing enough resources, to refurbish his existing plant in Western Australia. MDI is the darling of the punters - trading as a penny-stock, on relatively large volume. His orebodies/plant is only 150 km from Horizon Gold´s asset Gum Creek, and I know, that Rick would love to put these assets together. There are several, slightly stranded ore bodies in the area, which he has been trying to amalgate for some time. But his own exploration in teh emantime has delivered, culminating in some bonanza-grade drill intersections over the last few days. Good on him - it´s good to see frugality, sound knowledge and integrity coming together and having success! Well worth holding MDI, I think, despite the recent run. Some good people are backing him..my own fund has been there for many years, and is holding a sizeable positions in the options.

Breaker - another old hand, Tom Sanders, just does not give up to advance his asset Borborema! A strong intersection of 4m with 21,8g today added to a recent string of good drilling results, outside of the current resource! Unfortunately, the market still ahs it´s doubts, whetehr the resource is “hanging together”, and whether BRB will be able to deliver a strong, mineable resource. Good results like the recent ones certainly are helping his case and are starting to build up confidence. I am not a geologist - so very hard really to judge for me. But it´s worth holding on to the shares, and probably one should have a foot in the door here. If perception changes, the stock could quickly go quite a bit higher.

Genex - I think there a few stale bulls in Genex! It ahs taken much longer to bring everything together! It´s just ahrd for a small company to develope a 750 mill A$ hydro-power station right in the bush of Queensland. But the boys have really done a great job, and have persevered to manage to hold all the balls in the air: NAIF has committed to provide up to 610 mill A$ in financing for the project, at very favourable terms. Anotehr government body, ARENA, is hoped for to provide a 50 mill$ grant. The Queensland government is helping with a transmission line, and EnergyAustralia has signed an offtake-agreement for 10 years + options. So what is left??? Well 90-100 mill $ in equity! Reportedly, quite a few potential buyers have shown strong interest, and a final decision on a competitive basis es expected within a month. So everything should come together over the next say 8 weeks: The final commitment from ARENA for the 50 mill A$, as well as the fine print of the Queensland involvement in the transmission line. This is exactly the sort of project which is needed at a time of roaring supply of wind- and solar energy! And provicial as well as federal government are obviously seeing this as well. Genex is in the final run for a project go ahead ….and that should bring the valuation of the company into the mid-thirties from todays 20ct. I think GNX are a nice way to support a good cause, and make 50% profit on the way - potentially more! And potentially within this Quarter!

Strike - this Quarter will also be an important one for Strike Energy! Appraisal drilling of what has been one of the most exciting gas finds in Australia for many many years, should enhance the valuation and give more substance/safety to resource estimates. The gas market in Western Australia has also come into motion, driven by teh decision of Chevron to sell it´s stake in the North West Shelf JV, which potentially makes it easier for the NWS-JV to process thrid-party-gas ( like the stuff from STX or BPT ). This could well create a lot of demand for gas in WA….Over the enxt few month, we could see another strong share price move in STX…

Have a nice evening!

WS

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General - Evolution - Tietto - Technology Metals - Genex

Good afternoon

Equities manage to shrugg of prospects of a new escalation re Hongkong…Europe is a litlle weaker, but the US markets are up a touch, especially Nasdaq.

US PMI is continuing to rebound….

FedEx with a stellar Quarterly - indicating very strong e-commerce activity, but at least partially also profiting from company-specific issues. Australian companies like Marley Spoon should continue to do well, but also German entities like Hellofresh, Zalando or Westwing. Amazon makes a new all time high today - I guess on the back of the FedEx result. Same for Apple and Microsoft…the music never stops!?

Gold is under a bit of pressure today from profit-taking…the unsuccesfull attempt to move through 1800 US$ possibly triggered some selling, and inflows into gold ETF´s have been a bit slower over the last few days than recently. But the GDXJ is holding up relatively well for now.

Evolution - have completed the sale of the Cracow Gold Mine in Queensland. They will have more time now to look at the rejuvenation of their new Canadian asset, and the expansion of Cowal! Both are looking very good, and in the absence of aquisitions, should give EVN some growth in 2021 and 2022. jake has proven himself as one of teh smartest M&A managers in the past, and I think we can be assured, that he will stick to his mantra: Being a profitable gold miner throughout the cycle! I think this will certainly prevent him from buying anything for growth´sake!

Tietto - broker Hartleys today increased it´s target to 75ct, using some very conservative assumptions: Firstly, a very high discount rate of 14% ( which I think is very prudent, but much higher than generally being used ), but also 91% recovery, which is extremely conservative, when looking at their metallurgical results so far,which indicated at least 96% recovery. You can imagine, that 5% extra production at zero cost makes a big difference to earnings and the NPV! The drilling program is making very good progress, and I think we might have a new resource estimate within 2 month, and possibly, the results from a pre-feasibility study by January with a bit of luck! The results will enable analysts to put a proper valuation and targets on the stock, which I think might well be quite a bit higher! I continue to like this story!

Genex - the Northern Australian Infrstaructur Fund as well as other participants in the financing extended their offers to the 30th of September. The sale of some equity in the hydro-project is making good progress as well to make sure, that the target of financial close by the end of September can be met. I will comment in more detail tomorrow.

Technolgy Metals - the company increased the vanadium resource of their Gabanintha Project in WA by 32%. The project had a final feasibility study completed on it a few month ago, which indicated a mine life of 16 years. TMT have signed a few MOU´s with credible partners for offtakes over the last few month and now has the daunting task, to find approx 500 mill $ to bring the project into production! It sounds absolutely impossible for a small company like them - but these days, institutions like the Northern Australian Infarstructur Fund can be of big help, as tehy underwrite big licks of capital, at very favourable interest rates, as subordinated loans and over long time frames. For this latter reason, a longer mine life could be very positive for the project. As impossible as it sounds - if they find a suitable offtaker, which also takes some equity in the project, tehy might actually be able to get the financing done. but firstly, we need a better vanadium prices, which seems a distinct possibility. No major hurry to buy TMT - but it´s an interesting stock well worth following! I own a very small position in TMT.

Have a nice evening

WS

WS

Schröder Equities GmbH

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80538 München

Tel. +49-89-4613440-0

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email: wschroeder@schroeder-equities.com

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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

General - Prairie Mining

Good afternoon

So another financial year has finished! Certainly one of the more tumultous ones - but also one with some nice opportunites! My fund finished the year up by up 8,37% in Euro-terms, and by 9,55% in A$-terms. Nothing fantastic - but it could have been much worse and has been helped by gold stocks, but also some good trading of industrial stocks over the last few month.

Most serious investors seem to believe, that stocks have run well ahead of their real value, but I very much doubt this. Central Banks and governments around the world will have to make sure, that interest rates stay very low for a long time to come - certainly real interest rates. Otherwise, most countries and many companies will go belly-up! So while this is the case, how do you value equities? The return from bonds is about zero in most countries - the return from property is 2- 4%, depending on the country - the earnings yield from equities is still 4% and more. So where is the alternative? We are in a new world, and it will take time to adjust to it!

The Vhinese PMI is edging higher, and Consumer Confidence in the US is surprisingly strong again.

The US equity market is stronger - again! Not all that much action in base metals - a smaller zinc mine in Peru, operated by Trevali, was shut because of avirus outbreak. Just copper is up in a more emaningful way, also being helped by corona-induced supply-risks in Chile/Peru.

Gold feels like it might be close to start a new challenge to break the 1800 level - currently it´s trading at a new recent high of 1782 US$, and at a 4-week high in A$ at 2587 A$/oz. At this level, we will see quite a few new mines in Australia over the enxt couple of years - but rather 50-1500.000 oz projects, than large mines.Western Africa, if it can avoid too bad ´virus-outbreaks and too much political upheavel, will see more fresh supply. But nothing like a new 500-or 1 mill oz mine is on the horizon, if I am correct - and some of the large producers are continuing to struggle to find any growth.

Prairie Mining - are trading at 25ct+ in Poland today, where the stock is not suspended, on very heavy turnover. Prairie have found a financier - an international litigation firm - which will be financing up to 18 mill A$ for litigation against the State of Poland. Not sure, whether tehy will announce more details soon - but I would have thought, that the potential damages are far above 1 bill A$. It is certainly very encouraging to see, that a professional litigation financier sees high enough chances, to risk 18 mill A$ - for a potential return of several times this amount, I guess. Very often, these things are decided out of court, eventually and after years.But the market cap of 44 mill A$ ( at 21ct ) certainly leaves quite a bit of room. As a holder, I might hold my remaining position - but I am not a buyer of this never ending saga.

While I am ending tjis blog by late afternoon, gold is trading just above 1785 US$, and if it closes here, the GDXJ will make a new high!

have a nice evening

WS

WS

Schröder Equities GmbH

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80538 München

Tel. +49-89-4613440-0

Fax +49-89-4613440-10

email: wschroeder@schroeder-equities.com

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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

General - Panoramic/Horizon - Centaurus - Atrum Coal

Good afternoon

well equity markets are not disppointing today! It´s Quarter end tomorrow, and I think just about everybody would like to see prices rather higher than lower!

US housing data has been very positive today, partially due to some ( questionable ) reopening of US-markets…but infections are rising at a very fast pace in the US, amidst widespread ignorance over there. Let´s hope, that US optmism beats US ignorance!

Gold is holding so far at recent highs, as Gold ETF´s continue to see good inflows. Base matsla re slightly up today. Macquarie is pretty cautious on nickel, as production for non-battery material is boominmg in Indonesia. I think we can bury previous estimates for the nickel price of 17-200.000 US$/t in a few years…we might have to be happy with 15.000 for the stuff being produced in Australia, which is battery-material from sulphides mainly.

Panoramic - had their AGM today, and while beyond me, shareholders approved the sale of the remaining shareholding in Horizon Gold to Zeta Resources at the scandalous price of 20ct/share, vs a share price of 43ct today, and above 30ct for the last 10 days or so! Furthermore, Zeta gained control ( tehy now have 69% of HRN ) without paying a control premium! A good piece of work by Zeta - bad bad news in my opinion for PAN- as well as HRN-shareholders. As you know, I am a large holder of both, and tried to find some enthusiasm to vote against a sale - but only 11% of votes were against a sale. What a ( bad ) joke!! I am expecting now imminently a capital raising for Horizon, enabling them to do some more drilling for resource-conversion, and to drive the project forward. At current prices for gold, toll-treatment as well as a stand-alone project should both be VERY profitable!

Atrum Coal - had their AGM today. The company is developing a premium-quality coking coal project in Alberta, Canada. You might ask: Who is interested in coking coal? And my answer would be: Hardly anybody! But this is an excellent project, and coking coal will be needed for as long as steel is being produced! The company has 450 millt in resources, of which 142 mill are indicated - with much more to come, partially through a current drilling program. The company has previously done a scoping study, which indicated cash operating costs in the low 80ties US$ vs a current ( quite depressed ) price of 117 US$/t, placing them in the lower half of world costs. The approval process here is the major driver. Quite recently Gina Rhinehardt payd 700 odd$ for a nearby project, which is probably 12-18 month ahead in the approval process and therefore, has been partially de-risked. Interesting enough, the very wealthy Roberts family from Perth own 19% of it ( they previously made a lot of moeny by selling the neighbouring asset to Gina ), and some smart Perth-based funds are also large shareholders. The market of 130 mill A$ leaves a lot of room. Performance triggers will be drilling, the approval process, and the current PFS-study. Certainly worth watching, and having a foot in the door. The company completed a placement at current levels and has 22 mill A$ cash in the bank.

Centaurus Metals - teh Perth-based company is developing a nickel project in Brazil, which was previously owned by Vale and deemd by them as being too small. Vale explored it for many years as a potential bulk-mining operation, and it could not meet their investment hurdles. CTM is trying a different approach_ To develope several smaller mines, at better grades. CTM have been very successfull in doing so and have managed to deleniated a sizeable, 517.000t resource at the erasonable grade of 1,08% nickel, with high grade resource of 320.000t at 1,56% Ni. There is significant potential still to increase the resource. The company will be doing a scoping study , which should be finished by Okt/Nov of this year, and is doing more drilling as well. Cash as at the End of March was 7,5 mill A$ - the next placement by be a good time to look at them again! The share price was very strong today, following the better-than-expected resource estimate. They could be tempted to raise 15mill A$ soon, which would pay for a lot more drllling and a pre-feasibility

Have a nice evening

WS

General - West African - Mincor - Tietto

Good afternoon

Sorry - I forgot to send this out yesterday:

amazing…it took not very long for Wirecard to go bust! Absolutely appaling, that EY and the German watchdog f…ed this one up badly! I am sure, that tighter regulation will follow and will make life for the small firms like mine more miserable and more expensive - and I am also sure, that BaFin will not find the next fraudulent situation any earlier, still!!!!

Durable Goods orders in the States very strong, but labor market still weak! Corona cases in the States and South America remain very worrying indeed! Bloodbath politically - the US have tried to spend their way out of Corona - but all these trillions don´t help, if not accompanied by smart political respons as well. Countries like Germany, Australia and China have done well ( or at least: have been effective ), and under the circumstances, I would say that Italy, Spain etc have done relatively well also. South America has responded well, except for this lunatic Bolsonaro, but their large, unofficial economies have made it hard for them to be effective - same for India. Africa might be enxt? I hope not - yesterday, I spoke to a guy who is running a relatively large charity in Burkina, and he believes, that the situation in most West African countries is actually improving.

Base metals are doing little today, as is gold…and not much action in equities, either!

West African Resources - large Australian fund manager Mitsubishi ( the former Commonwealth Bank arm ) has sold 16 mill shares recently, reducing it´s shareholding to 60 Mill shares. Understandable - tehy have done very well out of it, and when that happens, you just should take some chips off the table. But fundamentally, this company is still one of the cheapest gold producers around! Richard Hyde does not make a secret out of being on the look for aquisitions, to reduce the one-mine and one-country risk. He has shown to be an excellent manager - but he still has to prove himself as an aquirer. He is a sensible guy and not a bull-shitter - so I ahve a lot of confidence in him! Still - there is a little bit of risk here. M&A game is different to the mining game! But I also believe, that there are a few good situations still around in Africa. Once in full rpoduction from underground - say 1.10.2020 - the company will generate something like 500 mill A$ in cash from Sanbrado - absolutely amazing! Net debt is only about 185 Mill A$…By year end, these guys could be debt-free or thereabouts - and ready to go on the aquisition trail. If the asset/company they will buy is not too large, they will probably move earlier! Something like Tietto - and I can think of 1-2 others - are small enough to be bought as soon as WAF prove, that their underground is going well…that might be by October or so. But the next trigger could be exploration results from underground drilling, later in July.

Mincor - announced an underwritten placement of 60 Mill A$ ( incl SPP ) at 72ct/share. Once in full production, their EV will be something like 300 Mill A$…That´s not cheap vs Panoramic, which is a similar company - producing a bit less but for longer, at similar cost. Exploration potential for both companies is excellent. But with MCR at 300 mill A$ and Panramic at about 170 Mill, I know which one I would buy! The share price dirrence can easily be explained by management: I think the guys at Mincor have done an excellent job, while Victor at Panoramic is still new to the public game, and still has to prove himself. And both have a similar, largest shareholder: MCR have IGO with 10%, and PAN have WSA with 20%! And Andrew Forrest also ahs a large shareholding in both companies…

Tietto - once again, tehy announced some more nice intersections from their Ivory Coast project. The next resource statement is due in September - hopefully, we will see 3 mill oz or thereabouts! The company continues to drill with 4 rigs around the clock…2000 asays are still oustanding from previous drilling. As far as I have heard, a very opportunistic, well known fund has been selling his original holding of 20 mill shares, and should be close to being finished! Taht would be great news - with 3 mill ounces, the company should be worth 300 mill A$!?

And in the following, today´s report - which does not really has so much to say, as we have little micro-news

Equity markets in Europe are looking stronger, following a volatile opening. Ongoing concern about new infections are creating some cautiousness among investors - but so far, liquidity is having the upper hand. I guess the 30th of June is also helping - Quarter end is always important for funds, and nobody wants to see prices tank ahead of it.

Base metals are pretty strong today - supply concerns regarding Chilean and Peruvian copper production are helping. Copper is nearly back now to where it started the year! Gold is having a quiet day.

The speculative wave in Australian exploration stocks still continues! Degrey, which traded at around 5ct 6 month ago, has hit a new high at 89ct today - a market cap of more than 1 bill A$! All a bit crazy, despite them having had a very succesfull 6 month in deliniating a substantial gold resource in Western Australia. But this kind of euphoria is certainly good for the market - for as long as it lasts! The last one is always bitten by the dogs, though!

Have a nice weekend!

WS