Report Cover Page

Contents

Where are we in the Cycle?
Further improvement in cyclical positioning is evident although recent prices are little better than average for the bottom of a cycle. More...

Market Directions
Energy prices, boosted by talk that Saudi Arabia will support a cutback in crude oil production, combined with ebbing fears of a Deutsche Bank collapse to support equity prices.    More...

Portfolio Performance and Positioning
The largest share price gains for the month were in phase one stocks but larger cap companies recouped losses from earlier in the month. The PortfolioDirect macro model undershot the benchmark by 2.4 percentage points in September and 2.7 percentage points for the three months ended September.    More...

Stock Reviews and Rating Analysis
Barra Resources (BAR:AU), 50% owner of the Mt Thirsty cobalt venture 20km from Norseman in Western Australia, is a participant in the lithium-graphite-cobalt battery trilogy. Storage battery opportunities are opening up new development options for deposits hitherto constrained by market size. Low grade cobalt-bearing laterite resources have lacked development attention apart from cases where resources have been incorporated into the mine plan of established nickel laterite mining and processing operations. These operators have demonstrated the technical capacity to recover cobalt using energy and chemical intensive processes. Of particular interest are a range of promising atmospheric leach processes (some of which have been trialled successfully at Mt Thirsty) which offer a potential lower cost development pathway.
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Although the statements of fact in this communication have been added from and are based upon sources E.I.M. Capital Managers Pty Ltd, the publisher, believes to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.

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