Market Update

General

Good afternoon

Trump is topping his previous madness…he now plans to to punish US companies, which are doing business with China, and vows to hold China “accountable for allowing the virus to spread around the world”. Every large US tech company is doing business with China - so his comments, allongside this mornings news, that Tesla will NOT become a member of the S&P 500, is pushing NASDAQ into deep red…following a positive start here in Europe. There will also be immens pressure on Softbank, to cut it´s option positions.

Surprisingly, gold is following South today…as are base metals. And as usual, when things are wobbly, the A$ is weaker as well….

There is increasing criticism of Victoria overdoing things in terms of fighting the virus! Only about 50 cases per day in Australia overall, and Victoria has extended the lockdown! There are still massive travel restrictions in place between the Australian states - very hard to get from Sydney to Perth, Brisbane of Melbourne !

Electric car sales are booming in Europe - and new models like the new VW or the MiniE are now hitting the show rooms. In China, auro sales generally have been very strong in July - up by 8.8% yoy - and especially EV demand increased by 45% to 82500 vehicles. Ev sales are strongly supported by subsidies. I think the market is getting much more interested again in this story. Macquarie issued a research paper today, estimating a 5fold increase in battery production between 2019- and 2025. The nickel, lithium and graphite will have to some from somewhere - as has the copper for the wiring - and not to forget for the infrastructure.

I fear there was pretty little to report today from the micro side!

Have a nice evening

WS

General - Metro Mining

Good afternoon

some people are crazy…well at least in my opinion. Amazing, how Softbank partially created the recent frenzy with their heavy buying of calls in Tech stocks! Even more crazy, that they might well be proved right! Goldmans are still positive, some volatility aside - and they

Equity markets have staged another buy-the-dip recovery! But NASDAQ still seems to be lagging - at least looking at the futures. Europe is pretty strong today, and base metals are trading ok - copper is making a new high. The US are closed today.

Chinese export numbers were a touch down on last month, but were strong YoY. But generally, economies are having difficulties to recover at the recent pace, despite all measures. Industrial Production in Germany increased by 1,2% in July, but that was less than expected. Whatever happens over the next few month - corona is still with us, and strongly rising numbers in many countries are still a worry. At the same time, the unprecetended spending binge continues - in this context, it is important to have in mind, that elections are looming in the US, and also in Germany next year…so these guys are doing what they can to hold up their respective economies. We will undoubtedly pay the bill…income taxes for the wealthy will increase, whoever wins - but after the elections. In any case, the damage to state finances and central bank balance sheets has been done - whatever we think about the necessity of the measures been taken. I therefor continue to be a strong believer in gold, even though the price of it is struggling somewhat in the moment.

Low interest rates, and a lower US$ are here to stay - and inflation has a better chance than for many years to raise it´s ugly head!

But for some, the going is very tough in the moment, despite the pronounced recovery of base metal prices since the end of March. One of them, unfortunately, is

Metro Mining - MMI has announced recently, that they will close their mine in Northern Australia at around the 15th of September, unless tehy can find new buyers of bauxite! The aluminium market has been under pressure ever since the virus hit. While the price has gone up quite nicely recently for alu as well as for alumina, this has only been achieved at the price of closing capacity. this has led to reduced demand for bauxite. Also, the lower growth enviroment had substantially decreased the cost of freight for bauxite, making Australian bauxite less competitive ( freight from Guinea is substantially more expensive than from Australia, and falling freight rates had a much greater impact for it than for freight costs from Australia ). Also, most of the large Guinea-based mines are Chinese -owned….Still, the desire of Chinese alumina smelters to diversify their supply should see a come back for demand for Metro´s product next year.

This development is a real pity for Metro, which operationally, was on it´s way to a record year and has done very well so far. Even with only a few month of production, the company will produce positive EBITDA this year. The mine can be restarted very quickly, because of the simplicity of the operation.. And debt levels are ok - the company has cash of 28 Mill A$, and only 10 mill A$ in net debt. But the situation is certainly putting a very big question mark over the planned expansion to 6 millt p.,a., which would have made them an even stronger cash producer. However, unless they can produce a miracle and establish new sales contract very quickly, the mine will close next week and only re-open by April next year! In markets, this is a very long time! So despite what probably is a deepl-value share price of 6ct, there is no big hurry to buy more in the moment. I am still convinced, though, that we will see much higher prices for MMI in the future, so rather than trying to pick the low, I will keep my shareholding.

Have a nice evening!

WS

General - Graphex/Marvel Gold

Good afternoon

Nasdaq is getting a bit of a hammering today, and general profit-taking in the US is dragging down European equities now, after having been firm all day until later in the afternoon. There is a lot of profit-taking around - I guess this had to happen! Economic numbers from the States have been mixed - labour markets still not out of the worst, and Services PMI have been strong.

Macron unveiled his100 bill Euro spending program, to revive the French economy.

Base metals are joing into the major profit-taking…copper down 2% currently, nickel down 4%. Gold is down 1% at 1925 in the moment - so as everything went up recently, everything is falling now!

Marvel Gold - the previous Graphex, is back on the board. The company restructured debt as well as the African graphite project, and is now concentraing of advanced exploration plays in Western Africa, especially Mali. Unlucky timing, with the coupe happening - but I am sure, that this will only represent a temporary issue.There are now 413 Mill shares outstanding, from recapitalising the company, as well as issuing shares for the new projects - capitilasing the company at 22,8 Mill A$ as at today.

Marcel Gold still owns the graphite project in Tanzania, but it will be sold at the best possible price - I guess to some Chinese company. Experienced geologist Chris van Wihk is heading exploration, and has been involved previously in the two new projects, which have been injected by Capital Drliing, an Australian drilling company, which is very active in Western Africa and is continuing as largest shareholder, with now 14% of MVL. The two main projects are Tabakorole, with a 2007-resource of about 600.000 oz , and Lakanfla. Just a few days ago, MVL also aquired Oklo´s South Mali exploration interests, to allow OKU to concentrate on it´s very promising projects around Seko. MVL believe, that Tabakorole has been misinterpreted, and will hold a resource with potntially better grades ( perhaps 1.3 or 1.5g/t ) as well as have larger size. They probably have already proved this, with recent, strong exploration results. like 38m with 2.1g. There are also numerous, older drilling results, which had not been incporporated in the 2007-resource. MVL will publish a new resource estimate this month - probably with less tonnes at better grades for hopefully 650-700.000 oz. Not enough as yet to be sure of having a mine there, but a strong step in the right direction.

The other promising project is Lakanfla, which is only 6 km from Sadiola, which is a large deposit, but largely mined out - with a very hungry plant. There are many similarities between the two deposits from a geologic viepoint, and Lakanfla has the potential to be a large deposit, nearly undrilled. First drilling under the roof of MVL will start later this month. I think MVL are correctly priced in this market, at the current share price - with a lot of upside from these two projects. The other projects are at a much earlier stage. Especially Lakanfla could be very large, providing current holders with massive blue sky and the hope, to see MVL again at substantially higher prices! I hope, that ypu particiüated in the recent 1:1 at 2ct! We are a long way off the previous price level of an adjusted 15-20ct - but I certainly see a good chance to see tehse prices again. Subsequently, I am holding a reasonably large position in MVL, hoping, that I will succeed with this gold explorer, which started as a graphite-developer!

Have a nice weekend - I will be at a conference tomorrow - and avoid looking at the markets in the meantime!

WS

Schröder Equities GmbH

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General - Evolution - Genex - West African - Chalice - Panoramic

Good afternoon

markets are surging higher! The amazing Zoom-result yesterday has put renewed fire under NASDAQ, which is now up by 33% this year! And strong manufacturing as well as PMI´s around the world are also helping. Retail Sales seem to be lagging, though - certainly in Germany. Today in the US, Factory Orders were strong, as were Durable Goods Orders. The US$ strengthened, and took gold down ( 1941 US$ currently ) and are leaving base metals only mixed after a strong start today. Nickel is up again in late afternoon.

The German GDP is now estimated to be below -6% this year, with a 4+% recovery expected next year. So not as bad as feared, but the recovery also a bit lower than expected so far. Australia surprised on the downside for this measure, clocking up -7% GDP last Quarter vs the first Quarter. And poor old India is really suffering, with a 20%+ fall last Quarter!

Battery Sales were down 17% over the first 6 month of the year, but recovered to +21% in July! Car Sales generally also also strongly on their way back up, as are sales of appliances in China. Both are helping the base metal complex, as is Warren Buffetts new interest in the sector via large purchases of stock in Japanese trading houses.. Copper, zinc and nickel are up by roughly 10% this year, and by 45-50% from the lows in late March!

Gold ETF´inflows have been slowing somewhat - that is a little worrying, as ETF´s have been the major buyers of gold recently. Turkey also stepped up it´s gold buying last month.

Cardinal has received yet another takeover bid at 90ct - in this enviroment, the story is not necessarely over as yet, while De Grey Mining has shot up by another 20% to a market cap of about 1.6 bill A$. DEG have made great gold discoveries in the Pilbara - I have to say, that I very much doubt, whether they are worth that much! In any case, good news for the punters, and these discoveries are what is driving speculative interest in the Australian market.

Panoramic Resources - you know that I am holding a sizeaböle position here, on which I have dropepd quite a bit of money! But there is hope! A few weeks ago the company announced a new Life of Mine Plan, which was pretty disappointing. This plan has been using extremely conservative parameters - something which I can well understand. If I would be the MD ( who came in in November ), I would have done the same under the circumstances! PAN used a lower reserve grade than in the past ( 1,23% nickel, which is probably erring on the conservative side by at least 10% ), higher mining costs ( which might be 20% overstated ), higher processing costs ( 10% too high? ), and lastly, at least 10% lower throughput and mining rates. The company arrived at All-In costs ( before headoffice ) of about 7,20 - 7,30 A$, depending on by-product credits. When Macquarie issued a new research update the other day, the stock even traded below the rights-issue price of 7ct! The analyst valued the stock at only 7ct - based on even more conservative ( you might call it: wrong - operating costs, and using Macquaries relatively weak nickel outlook. Late yesterday, Foster Stockbroking also issued their report, which has a target of 14ct! And as we know, nickel prices are racing - even though there is doubt, how sustainable the current, near 16.000 US$/t price is in the short run. I am still a believer in PAN and have bought a few more here and there. As you might remember, Western Areas is now the largest shareholder with nearly 15%, and Zeta Resources´influence over the company is much reduced, which is also good news. And finally - probably stupidly - management of WSA stated in a recent analyst call, that they might well look at a takeover, once the ventilation shaft would be finished!

Panoramic is now drilling again it´s highly prospective underground resource, and progress to develope the ventilation has been at least on target. It will be all finished in the 1st Quarter, probably in January. Panoramic have enough cash to finish all necessary development work on stpes, as well as on the ventilation. To go into production as planned in the 2.Quarter 2021 ( and provided nickel prices are satisfacory — I guess abover 14.500 US$ or so ) , the company will need some more working capital. Since the mine will be dramatically de-risked by that time, bank- or offtaker financing should be no problem. Macquarie was talking about another 40 kmill A$ rights-issue - I would rule this out! So I am sure, that PAN will NOT need more equity to come back as a producer!

Generally, I think the EV-story has only just begun! EVsales numbers around the world are increasing dramatically now - helped in many cases by subsidies, but mainly because of a massive roll-out of new models this year and next. You onyl need to look at this crazy Tesla price, and you know, that the story is happening! So while we might not see nickel back at 20.000 US$/t within our normal investment horizon, 15-16.000 US$ are a nice price for Panoramic, and probably a price which is also needed to spark fresh investment in conventional, battery-nickel! You only need to look at the chart of Panoramic to know, that this stock is going to make you money - provided nickel will not fall out of bed in the longer term, which is not going to happen, I think.

Evolution - like all larger , Australian gold producers , the share price is way below recent highs. The first reweighting by generalist funds into the sector had happened, and the stronger A$ has eaten into extremely fat margins for these companies. But the current price level is still a very very healthy one! Nothing is cheap in the sector - companies have re-rated - but EVN are correctly priced for this gold price, and I do prefer it´s reliability and it´s management to the other mid-sized, Australian producers.

Evolution held it´s virtual investor day the other day, and I think the story has been very positive. Jake Klein ahs guided for 670-730.000 oz production this year, 700-770.000 next and 790-850.000 oz in 2022/2023. AISC will be moving from 1240-1300 this year, 1220-1280 next year, and 1125-1185 in 2022/23 - potentially higher, if the gold price / copper price will be higher, resulting in increased royalties. Sustaining Capital will be roughly stable, fluctuating bewteen 110-and 130 mill A$ p.a. / exploration expenditure of between 70-100 mill A$ p.a. Major Capital will be around 260 mill A$, reducing somewhat over the next 3years. This is all nice and good, but in itself, will not drive the 10 bill A$ market cap of EVN any higher - unless the gold price continues to move. The smallest increase in potential valuation will come from Mungari, which has had some issues, but achived a major, operational turnaround in the year just finished. EVN management believe, that Mungari is now on track to be a 115.000oz producer for 10 years to come. Cowal is larger - they will increase production from about 270- to 350.000 oz by going underground for a long time to come. But the big story is Red Lake, which is shaping up to be another fantastic aquisition for Evolution. Resources have already been upgraded to 11 mill oz. The mine is targeted to produce between 300.000and 500.000 oz in the longer term, for the long term! The largest increase in production would come from developing open pits, from a resource, which effectively starts close to surface, and containes 4.3 millt at more than 10g gold. This will not come easy - a small township and surface infrastructur will have to be removed. But obviously, the potential price is fantastic! At this point, nobody will inclued this in estimates - too long is the time frame ( probably 4-5 years ), and no feasibility study has been done - so costs are anybodies guess. Capex will be high - no doubt - but these plans could bring Red Lake back to the old days, when itw as a world class mine! But in the meantime, EVN have made big progress to cut costs at the existing Red Lake, and to simplify the operation. At the same time, EVN are working to increase mining rates, to fill up the existing plant, which has substantial free capacity. Overall - a little bit early to come to a fix conclusion ( i.e. hard numbers ) on this mine - but the future looks pretty exciting for Evolution. Hard to see a rerating over the enxt say 6 month - but the company will be a very save, reliable producer of around 700.000 oz,a nd will deliver significant free cash to shareholders. Performance should be at least with the gold price!

Genex Power - hopefully, this is the last time I have to tell you, that it´s happening soon! All existing agreements mature on 30.9. ( unless prolonged, as before ). The company is still waiting for the service agreemnet with Queensland Government for the transmission line. There are elections in Queensland next month - government going into hiatus on 6th of October. I expect them to wait for as long as possible with the news - tehy will want positive sentiment from these announcements as close to the election as possible, I guess! So I would hope for the announcement around the 20th of Sept….All other agreements are in place for financing etc, selldown of the asset at asset-level, J-Power to atke additional 25 mill A$ in equity at Genex, effectively at about 26ct. I think the stock will be worth at least 30ct, once these announcements have been made. Disappointingly to me, the company has raised 21 Mill A$ in a placement + offered a 7 mill A$ SPP at 22ct. In my opinion, the timing has been very bad! Anyway - it has happened. The company wants to develope a 50-75 MW Li-ion battery project in Queensland, which will give them the ability o arbitrage electricty prices…might be a good idea ( but I know little about it at this stage ), but I regard the timing just ahead of the go-ahaed for pumped hydro as poor! Nevertheless - GNX are worth a lot more, once pumped hydro has been approved ( hopefully! ) within the next 3 weeks!

West African Resources - the company has delivered a profit for the last half year, depsite only going into production in May, and without any production from underground as yet! Fantastic! Very important news should hit the screens before the end of September: Deep drilling results ( which have never disappointed so far! ), beginning of production from underground. The market will watch for grade reconciliation ( production drilling has delivered exceptional results! ) and production ramping up as planned, as this is a very important part of the project! The company is down to net debt of only 200 mill A$….if all goes to plan, WAF will be debt free by the middle of 2021 - just about 1 year after going into production! So ver the next few month, more good news to come : First more or less full Quarter of production from underground, more drilling from Sanbrado, and drilling form the newly aquired ore body from B2Gold 25km away, which will start immediately after the wet season has finished - probably by early October. This should give the market some visibility to look at WAF producing 150-200.000 oz of gold for 10 years, following 217.000 oz on average for the first 5 years. I think costs might be impacted a little bit by COVID etc - but I still hope them to be at around 550 US$ vs early expectations of 500 US$ ( which would still be lower than what some analysts are going for. It remains one of the few stocks, which are undervalued….The Mali coupe has not helped them, even though WAF are active in Burkina Faso. But the Americans probably don´t know, where that is compared to Mali!

Chalice - in my absence, reported some very nice intersections from Julimar, their PGM/nickel/Copper discovery in WA. Long intersections of up to 30m with 3-4-5 g Palladium, 0,4-0,5-0,6g Platinum, some nickel, copepr and cobalt are giving more hope to a large resource at good grades. A few days ago, they also announced some first, positive metallurgical results. The stock had a good run following these announcements and is no bargain - but probably worth it´sprice. I have lightened off, but am still holding a very reasonable position.

Have a nice evening! WS

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

 

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 - Strike - Apollo - Oklo - Foran Mining

Good afternoon

A month has gone by! Gold is trading almost where it was at the end of July / equity indices, especially in the US, continued to be strong / base metals are generally sharply higher / same for iron ore / and perhaps most importantly, the US$ continues to weaken! Bonds have started to weaken as well - not only in the US, as markets are sort of expecting inflation to go higher as a consequence of fiscal- and monetary politics around the world.

Corona is still the big story - cases are up by roughly 50% in Australia over August, from a very low base, and following a new breakout ( followed by a lockdown ) in Victoria. Over the last few days, things have started to improve again in Australia, with about 100 cases/day.

In the US, cases are up by about 2,4 mill over August, also roughly 50% 7 up by about 33.000 or less than 15% in Germany - but a lot worse in Spain, France and some other European holiday-countries in Europe - interestingly not in Italy, though. These numbers are not always comparable with early numbers back in March/April, as the number of tests being done have increased substantially everywhere. So overall, the situation seems to be much betetr in hand than a few month agao, but at the price of still severe impact on many industries, like pleasure&entertainement, sports, tourism, hospitality etc. Many businesses around the world will still go bust, also in retail - especially stationary retail. So things are still tough out there, and very tough indeed for quite a few people! Yet many Indices, especially in the States, are at - or around all time highs!

The FEDhas contributed a fair part to this, basically cementing the current, ultra-loose policiy for years to come, and other central banks are doing the same. Governments are announcing one support program after the other - to a degree, I have going along with government spending plans lately - but these things are starting to become ridicilous, and you wonder, what the harsh reality without these programs will look like in 12 month! Very bleak for many, that´s for sure! But more positive for some, like businesses with exposure to digital, like many NASDAQ-listed companies.

Perhaps a liitle surprising is the ultra strong performance of iron ore, and most base metals. China is obviously the driving force here. Government spending is doing it´s part - but they also have the corona situation pretty much under control. And supply issues have hit markets, with many mines being run down, or producing below capacity. New cases in Peru are stll ballooning, and Chile is also still pretty much up there - even though with substantially reduced numbers.

Gold equities in Australia are all down, basically. The larger producers like Evolution etc, are down by 10% or more, the smaller developers in many cases are down by 20% or so. To some degree, the rising A$ has taken some of the shine off, as the A$ gold price is down by about 100$/oz to a still very nice 2670 A$/oz - but demand for gold equities has been satisfied by a myriad of placements in larger as well as in small- and very small stocks. Berkshire Hathaway have excited the market not only with a 600 mill $ investment in Barrick, but also a much larger investment in the seix large, Japanese trading houses like Sumitomo etc, which are among the biggest metal traders in the world. Buffett previously had been very negative on gold!

So generally, gold developers are very well cashed up, and as a consequence, the availibility of drill rigs has become an issue. I guess teh same applies to people in the mining sector, although I have not really heard complaints about that as yet. And no doubt, gold production in Australia will go up.

Nevertheless, gold might well have started a new era, as government spending and central bank printing are making normal currencies fundamentally worth a lot less!!! Where do you invest your moeny these days as a high net worth individual, or a generalist fund? Interest rates are going to stay very low for a very long time - if not, the world will go bust! Both would be good for gold!

So this gold story has seen the first big wave of investment - but the numbers are still small compared to what´s happening with the market caps of the large internet- and software stocks in the States. And the longer gold stays up here, the more investors will get used to it. I still believe in gold at current levels, and especially, while the world is a crazy as it is and probably will be for years to come. So Australian gold producers ofefr some value, again, at current levels, and the developing space is still very good value, in many cases. My favourite stocks for gold exposure liek for example Evolution, West African, Tietto, Apollo Consolidated, Oklo or Horizon Gold are all cashed up and ready to find more!

I will spend some time on Evolution later this week - tehy have their investor day tomorrow, and I think the market will come back very bullish on Cowal and Red Lake from this - the latter looking increasingly like the next aquiisition bargain for EVN, and a large mine for many years to come.

Base metal stocks are also becoming of great interest to me! Only very few have performed really well over the last few month and in line with the underlying base metals, like OZ Minerals, which is trading at all time high ( for good reasons, I might add ). But while copper, zinc, nickel and also aluminium have done very well, equity investors are kind of watching the price development with disbelief! Having said this, disappointing outlook statements from Western Areas and Independence did not help the sector, either. I would highlight here, that company-valuations for my holdings Foran Mining and Panoramic Resources have hardly responded to great base metal prices as yet, and privately, I have added to both holdings. By straw hats in winter!

I will catch up on some of our stocks over the next few days and will concentrate today on companies, which reported news today.

Strike Energy - lots of things happening here recently! The nearby project Waitsia finalized a contract with the gian North-West-Shelf LNG JV, to deliver it´s gas to that project. This not only shows the demand for cheap , additional gas from the big boys, but also removes this supply from the West Australian market, which most probably will be in shortage a few years out without West Erregulla gas from STX/WGO. The West Australian government have announced, that further exports of onshore gas will not be allowed.

While this announcement shows the expected tightness of the gas market in WA, it reduces the optionality for Strike to deliver ( at probably higher prices ) into export gas. It is believed, though, that WA will rethink this ban, as it has already impacted on local exploration programs, which is certainly very counterproductive. Today, Strike announced a firm offtake agreement with Wesfarmers, one of Australia´s largest companies, to deliver them about half of the gas produced in Stage 1 at firm, escalating pricing. While prices have not been announced, Strike stated, that the delivered price would be very much cash flow generating and would support bank financing for the growth of the project into Stage2. Also, Strike announced, what must be very satisfying for the MD: They will finally receive the government subsidy for exploration , which they were initially denied. The company should receive 6 mill A$ shortly, and about 3 Mill A$ in a few month time. This will give them close to 30 Mill A$ to play with, incl current cash The cost for each of the next two wells drilled by the 50:50 JV has increased somehwat from the 10-15 mill A$/ well I was expecting ( STX never stated these amounts ) , and is now close to 20 mill A$ for each well. Strike should have no problems to pay for the next two wells - their share being 20 mill A$ approx, plus headoffice costs. For Warrego, this will make things very tight! I have heard , though that the working relationship between the two JV partners has been much improved, which is certainly a positive and important as well! Overall, the new offtake agreement at firm prices will make financing of Stage1 and Stage2 of the WestErregulla project much easier to do for the banks involved, and should give Strike a chance to gear up any proejct finance much more.

The most important of all, though: Strike/Warrego will start drilling in less than 2 weeks, I believe. The next two wells are very important to derisk their initial success, and increase the size of the resource. Remember, that the consultants of Warrego had come up with a lower resource estimate than Strike - all uncertainty with regards to the estimate should also be put to to bed. Brokers have unrisked valuations for Strike at above 40ct - and this level could nearly be reached, if the two wells are successfull. The chances for this are high - but one never knows, before it´s done! Next target for me in the shorter term is the recent high of 30ct ( adjusted for the rights issue ). So exciting times for us as long term shareholders, and the company!

Foran Mining - one of my two Canadian investments ( the other one being highly successfull Osino Resources ) has struggled over the last year. Expectations had been high , as Glencore had been closely involved in the pre-feasibility study, which has been done as a very detailed study, using roughly current metal prices. The feasiility study has put an NPV of nearly 10x the current share price on the project. While more equity will be needed to develope Mcilvenna Bay, the resource is indicating, that ultimate production will potentially be larger, of alternatively, the 9 year mine life much longer than the 9 years from the feasibility study.! This little, 27 mill$ company is a big sleeper, and will ultimately make a lot of money for current shareholders. The stock was trading at above 30ct last year, at very similar metal prices, and not as advanced as at today!

Oklo Resources - you will have read about the political situation in Mali, which has had something like a military coup. Certainly not good, and I don´t want to downplay it. But military coups in Western Africa are nothing that unusual! Nevertheless, it´s not good for the investment climate in Mali, and in Western Africa. All related companies are trading at levels, which are probably 10% below price levels they would probably trade otherwise. This also applies to Oklo! In actual fact, probably more than 10%! Priror to the coup, OKU trated at 35ct/share ( vs 28ct today ), also helped by the fact, that Resolute bought a 10,7% stake in the company to become the 2nd largest shareholder behind BlackRock. Production of all larger gold mines has been unaffected by the coup - as usual in these countries! Nobody wants to kill the golden goose! OKU announced some nice drilling results . From SK North, good deeper results from about 200m of 23m at 2,57g / 50m at 1,43g, which will extend the resource at depth. Two mettalurgical hoels drilled at SK North had 18m with 9g and 33m with 3,1g from 44m and 121 m resp.. And drilling from SK South had several 10-14m intersections from about 45m at grades of between 1,4g and 2,7g. Overall, they will add to the first resource estimate, due this half. Some estimates believe the fist resource to be around 600-700.000 oz at good grades…but we will need confirmation of this over the next 2-3 month. Due to the current wet season, drilling will only resume in 4 weeks time.

Apollo Consolidated - AOP announced another set of drilling results from their Rebecca Gold Project east of Kalgoorlie. Cleo, which is about 1 km west of the 775.000oz Rebecca desposit. returned results of 38m with 2g gold and 2m with 9,4g. Duchess, which is 4 km South of Rebecca, had results of 35m with 0,9g and several intescts of about 10 w withbetween 1,15g and 1,83g gold. Duchess, which so far has an inferred resource of 180.000oz, will increase the resource and probably also the resource classification, while Cloe does not have a resource so far ( but I guess will have so at the next estimate ). 18 of 19 Duchess holes intersected worthwhle mineralisation - some very long, low grade intersections like 73m with 0,73g gold / 73m with 0m6g , and 100m with 0,43g, indicating good tonnage potential. The proejct has some strong resources at good grades, surrounded by what probably is a relatively large , but economic and mineable low-grade resource. The 1 mill oz project will increase, and further drilling is in progress. AOP still have about 20 mill A$ in cash + a royalty, which shoudl be worth north of 15 mill A$ on Roxgolds main project in Ivory Coast, which should get the go-ahead relatively shortly. I continue to be a shareholder here.

So far so good for the first full day back in the office!

Have a nice evening!

WS