Report Cover Page

Contents

Where are we in the Cycle?
Marginally stronger US growth has come with a declining investment contribution to leave the mining industry cyclically worse off. More...

Market Directions
Smaller resources stocks, which have led recent sector performance, have lost market momentum despite an appetite for riskier financial assets outside the sector. More...

Portfolio Performance and Positioning
Phase I stocks continue to show relative strength because of their leveraged positions to an improvement in risk appetite. Adjustments to holdings within the portfolio models have reflected relative performance changes. The overall cyclical positioning has not warranted a reduced cash allocation which remains high. More...

Stock Reviews and Rating Analysis
Blackham Resources (BLK:AU) produced its first gold in October 2016 with an initial annual production target of 100,000 ozs with all in unit costs of A$1,120. Since the commencement of mining, the company has reported close to 200 metres of strike at the mineralised M5 structure to the west of the M3 pit in the Matilda production area and additional material between the M3 and M4 pits. Intersections from the newly defined M5 material include 7 metres at 3.08 g/t Au from 25 metres, 4 metres at 5.44 g/t Au from 42 metres and 14 metres at 1.41 g/t Au from 12 metres downhole. The new exploration finds will underpin a larger resource supporting a longer mine life. The company has commenced an expansion study aimed at raiang production to 175-230,000 ozs/year.
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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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