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Contents

Where are we in the Cycle?
A reappraisal of the trajectory of growth by members of the Federal Reserve board implies an increasingly prolonged cyclical trough for the resources industry.    More...

Market Directions
‘The vote over UK membership of the European Union has begun to destabilise markets. An implied negative growth impact from a vote to leave is likely to have an adverse effect on resource sector pricing although all market segments are likely to be affected detrimentally.    More...

Portfolio Performance and Positioning
Losses across all corporate development stages typified the week with small stocks continuing to gain from their leverage to an emerging cyclical bottom while larger stocks are affected adversely by fund flows away from the sector due to fears about the growth outlook.    More...

Stock Reviews and Rating Analysis
ASX recently forced Adelaide Resources (ADN:AU) to retract a report about progress at one of its Eyre Peninsula gold projects in South Australia. The company had outlined a course of action to assess a mineral deposit of still unknown size and economic potential making clear, in doing so, that its description fell short of what would be required to meet the JORC code standards for a resource estimate. The greater risk for investors is where companies claim to have fulfilled JORC standards when they have not. A Mining Journal article pointing out that at least 60% of published industry reports over the past two years have failed in some way to meet the JORC Code requirements despite claiming to have met the standard highlights the need for independent research.
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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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