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Contents

Where are we in the Cycle?
‘Uncertainty’ and ‘volatility’ are too readily being blamed for market outcomes, sometimes to avoid embarrassment, when ‘highly likely’ and ‘predictable’ are more apt descriptions for financial and economic outcomes at the present point in the cycle. Despite much commentary to the contrary, metal price volatility is nearly as low as it has been at any time in the past 35 years.    More...

Market Directions
Equity market movements have coincided with oil price changes. Relatively strong U.S. capital spending and small increases in jobless numbers added market support while, at the same time, they continued to highlight a marked divergence between household and business sector economic outcomes.    More...

Portfolio Performance and Positioning
In line with market conditions, portfolio outcomes in February were one of the two strongest monthly returns in the past nine months. Recommended cash retention remains high. Phase II companies have led the portfolio gains through recovering stocks that had previously been heavily oversold.    More...

Stock Reviews and Rating Analysis
Silver City Minerals Limited (SCI:AU), exploring for base metals near Broken Hill, has been classified as a Phase I company and rated ‘3+’ on the five point PortfolioDirect rating scale where a ‘5’ is the highest rating on the risk adjusted quality scale. The company has received a relatively high quality rating based on the PortfolioDirect “FLAGS” criteria. The location of the exploration properties in a region of historical world class workings with significant production on surrounding tenements does not guarantee success but raises its likelihood. The risk profile is in the lower to middle part of the feasible range with the largest contributor to the risk profile arising from limitations on the company’s funding. Its funding position is adequate to fulfill its near term needs but remains a constraint on the speed of its activities. Additional equity funds will most likely be required in 2016 to do justice to the opportunities.
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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.

All opinions and estimates in this communication constitute judgments by E.I.M. Capital Managers as of the date of this communication and are subject to change without notice. The publisher is under no obligation to make public any change in view about any matter referred to in this or any linked documents.

No references to past investment performance should be taken to indicate anything about future performance.

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