Report Cover Page

Contents

Where are we in the Cycle?
Exchange rates remain the dominant macro influence on the recent metal price improvement. Forces at work to reverse the exchange rate moves could undermine any prolonged metal price recovery.      More...

Market Directions
Mixed messages signalled a period of potentially directionless trading and possible reversal in resource sector gains without sufficient evidence of their sustainability.    More...

Portfolio Performance and Positioning
Phase III companies which had been the beneficiaries of more favourable sentiment toward the sector had gains reversed. Phase I companies continue to benefit from bottom of the cycle leverage but few can retain the sometimes outstanding gains being made.          More...

Stock Reviews and Rating Analysis
Bannerman Resources (BMN:AU), developing uranium assets in Namibia, has been classified as a late stage Phase I company and rated ‘3’ on the five point PortfolioDirect rating scale. Despite having done as much as it can to ensure project development proceeds as quickly as possible, uranium market conditions are dominating the timing of development. The company offers strong leverage to an improvement in uranium market conditions with a high likelihood of project completion adding to the value proposition. The company will have to define market openings with clear contractual obligations before development can occur, another feature of development out of its immediate control. On the other hahd, investor expectations are low and moves to finalise mine development approvals, with ample precedent and a supportive government, should be relatively straightforward.
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DAILY BRIEFING: The PortfolioDirect market diary offers brief thoughts on current issues affecting sector investment strategies.

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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