[cid:image001.png@01CE4D55.1BC187B0] Friday, 10 May 2013 [cid:image003.jpg@01CE4D55.5DAF46D0]
Snapshot � Company news highlights: Ferrexpo Q1 IMS, Centamin announces new hearing date on 19 June, Sylvania Platinum to resubmit Volspruit MRA, Amara files 43-101 technical report on Yaoure resource, Baoshan Iron and Steel cuts June steel prices, Chalco announces asset disposals in downstream businesses, Turquiose Hill secures US$2.5bn project finance facility, Wolf Minerals finalises S$192m debt facilities, Solgold appoints new CEO � Commodity review highlights: Mixed views on gold markets � Other economic news: Central banks around the world are cutting interest rates, Elbegdori nominated as Mongolian presidential candidate by Democratic party � African resources update: ENRC deals cost DRC, says Kofi Annan � FTSE futures up 5.5 points this morning.

Asian markets are mixed - Nikkei +2.93%, Hang Seng -0.12%, ASX 200 +0.15%.

Overnight the S&P closed down 6.02 points (0.37%) despite the better than expected jobless claims data (falling 4,000 to 323,000) as Philadelphia Fed Chairman Ploser stated that he favours scaling back QE3 at the next FOMC meeting in June, given that unemployment will, in his view, fall to 7% by FY13.

The Japanese current account surplus widened in March as the weaker currency boost repatriated earnings and brightened the outlook for exports. Commodities are also mixed this morning - gold +0.15% (US$1,460.30/oz), silver +0.35% (US$23.8225/oz), platinum -0.20% (US$1,513.50/oz), copper-0.10% (US$3.337/lb), nickel -0.79% (US$15,216.50/t), zinc -1.21% (US$1,840.75/t).

Iron ore was flat at US$130.20/t yesterday.

Steel rebar futures fell 0.9% overnight to 3,587 Yuan/t, paring weekly gains as Baosteel makes cuts to the sales price of both hit and cold-rolled products. Economic data due today:- US - Apr Monthly Budget Statement (forecast $110bn), Bernanke speaks at the Chicago Fed conference; UK - Trade Balance (Investec forecast -�8.5bn), EU trade (Investec forecast -�4.8bn), construction output Mom (forecast 15%); EU - Italian industrial production (forecast -0.3% MoM).

Finally the G7 finance ministers and central bank governors will meet in London today for a two day conference.
Company News � Ferrexpo (FXPO LN) Q1 IMS.

At 2,565Kt, FXPOs Q1 sales were in line with its previously announced Q1 production.

The group received iron ore prices which were on average 19% higher than the previous quarter.

C1 costs were US$63.9/t - up from the US$59.0/t achieved in Q4 2012.

However, costs should pull back as the new mine, Yeristovo is bedded in in H2.

As of 31 March, the group is owed in excess of US$300m in VAT by the Ukrainian government.

Source: Company Investec view: FXPO is a very solid iron ore producer but the market must keep an eye on these VAT issues.

As of 31 March, the group had net debt of US$539m, but this would only be US$203m if it were not for the VAT owed. � Centamin (CEY LN) announces new hearing date on 19th June for its appeal against the 30th October 2012 decision to revoke the companys exploitation lease at Sukari, by the Egyptian Administrative Court.

The Egyptian State commissioners office has produced a report containing non-binding recommendations for the supreme court that are not positive, although CEY does not believe that they address the merits of its appeal upon the initial review of the state commissioners report.

The recommendation of the state commissioners office is advisory only.

Sukari continues to operate normally.

Source: Company Investec View: This process of appeal has been continuing for some time with Supreme Court hearings previously re-scheduled as the various parties have prepared their responses.

The report produced by the commissioners office is a new development, although is probably not a surprise. � Sylvania Platinum (SLP LN) to resubmit Volspruit Mining Right Application (MRA) having originally submitted 29 September 2011, but was then requested to supply additional information to complete the Environmental Impact Assessment (EIA), since the nearby Nyl River floods regularly.

However, since the river has not flooded this year the board has decided to withdraw and resubmit a new MRA allowing time to complete the study that would otherwise have expired.

The company does not see this delaying the project since the key critical path item is power, and the EIA should provide a decision within 120 days of submitting a new MRA.

The project is on the Northern limb of the Bushveld with around 3moz of resource.

Due to the depressed market conditions the company is reviewing its options with this project that could delay it e.g.

selling it or relisting it as a new entity.

Source: Company Investec View: Clearly the tough market conditions for PGM miners are causing most companies to review their options.

SLP is focussing on its cashflows from its operating dump operations. � Amara Mining (AMA LN) has filed its 43-101 technical report on its Yaoure Resource that was announced on 25th March outlining an inferred 1.7moz sulphide resource at 1.52g/t with 0.3moz at 1.31g/t in 8mt of ore in the indicated category.

Exploration drilling is expected to add ounces in H2 with a PEA planned for completion in Q4.

Source: Company Investec View: Although not of exceptional grade, the project has considerable upside potential and importantly benefits from excellent infrastructure which will greatly benefit a potential development.

In addition, the company has previously mined the oxide resource providing valuable local experience. � Baoshan Iron and Steel (600019 CH) cuts June steel prices.

Baoshan Iron and Steel (Baosteel) has announced steel price cuts for delivery in June.

HRC prices will be reduced by RMB180/t.

Source: Company Investec view: Steel rebar futures for October delivery (RBTV3 Comdty) have risen slightly in recent days and are currently at RMB3,631/t having recovered from a YtD low of RMB3,546/t on 2 May. � Chalco (2600 HK) announces asset disposals in downstream businesses.

Chalco has announced the sale of its Northwest Aluminium Fabrication Branch and Alumina Production Line of Guizhou Branch to parent Chinalco and the disposal of equity interests in a further 8 aluminium fabrication enterprises by way of tender on the Beijing Equity Exchange.

The total appraised value of the disposals is RMB8.17bn (c.

US$1.33bn).

Proceeds of the sale will be used for working capital and to reduce debt.

The Chalco board has also approved the issue of up to USD1bn of perpetual bonds.

Source: Company Investec view: The sale is part of Chalcos ongoing strategy to focus on higher value upstream assets. � Turquoise Hill (TRQ CN) secures USD2.5bn project finance facility.

Mongolian copper/gold company Turquoise Hill, which is 51% owned by Rio Tinto, has secured a c.

USD2.5bn project finance facility, which includes a USD1.0bn tranche at LIBOR+2.5% and USD1.5bn tranche at LIBOR+3.4%, according to reporting by Bloomberg.

Rio Tinto CEO Sam Walsh recently commented that the company is "well down the path in terms of resolving issues with the [Mongolian] government" and plans to begin concentrate shipments in JunH13.

Source: Bloomberg � Wolf Minerals (WLF AU) finalises A$192m debt facilities.

WLF has signed documentation for the A$113m project finance facility, provided by UniCredit Bank AG, London Branch, ING Bank N.V.

and Caterpillar Financial SARL.

In addition, it has signed documentation for the A$79m funding package provided by Resource Capital Fund.

The A$192m in combined should provide sufficient funding to commence the Engineer Design and Procure contract, and purchase properties required project development, whilst also provide working capital for WLF during construction.

WLF also revealed it has binding off take agreements with Wolfram Bergbau und H�tten AG and Global Tungsten & Powders Corp for the projects tungsten production.

Source: Company Investec view: This is positive news for WLF and we expect the group to now push ahead with development of its Hemerdon mine. � Solgold (SOLG LN) appoints new CEO.

SOLG has appointed Alan Martin as its new CEO.

Prior to joining the group, he spent 5 years at Colonial First State specialising in junior mining and exploration companies.

Source: Company
[cid:image005.png@01CE4D55.5DAF46D0]
Commodities News � Mixed views on gold markets as ETFs have been releasing metal, whereas jewellery buyers in Asia have been buying heavily on the back of the weaker pricing environment leading to uncertainty on whether further liquidation of ETFs will outweigh jewellery buying activity.

However, we are approaching a seasonally stronger period for jewellery demand.

Indian imports in April exceeded 100t and are expected to exceed this level in May.

Following a continued erosion of ETF holdings,, yesterday a small increase was recorded of 0.1% taking the total to 2,241.708t, the first increase since 1st April.

Source: Bloomberg Investec View: If ETF holdings start to turn, and with strong demand likely to continue from Asia in the months ahead could well be supportive for gold in the months ahead.
Other economic news � Central Banks around the world cutting interest rates with Australia, the ECB and India all acting last week.

Other banks are expected to act similarly.

Source: Bloomberg � Elbegdorj nominated as Mongolian presidential candidate by Democratic Party.

Mongolias current president, Ts.

Elbegdorj, has been unanimously nominated as the Democratic Partys presidential candidate.

Mongolia will hold elections on 26 June.

So far Elbegdorj and B.

Bat-Erdene from the Mongolian Peoples Party have been announced as candidates.

Source: UB Post Investec view: It appears the presidential election will be more sedate than last years parliamentary election, which saw substantial rhetoric in support of resource nationalism, based on campaigning to date.
African Resources update � ENRC deals cost DRC, says Kofi Annan.

Kofi Annans Africa Progress Panel has written a report to be published today, which calculates that the DRC has incurred losses of US$1.36bn between 2010 and 2012 as a result of undervaluation of state assets in 5 mining deals, 3 of which involved ENRC.

Source: FT
Investec Global Natural Resources Research Team: UK Australia Hong Kong South Africa Hunter Hillcoat Tel: +44 (0) 20 7597 5182
Tim Gerrard Tel: +61 (0) 2 9293 2168
Matthew Whittall Tel: +852 3187 5075
Albert Minassian Tel: +27 (0) 21 416 1454
Marc Elliott Tel: +44 (0) 20 7597 5189
Colin McLelland Tel: +61 (0) 2 9293 2140
Leavitt Pope Tel: +852 3187 5074
Louise Collinge Tel: +44 (0) 20 7597 5779
Simon Haggarty Tel: +61 (0) 2 9293 2462
Investec Global Natural Resources Sales Team: UK Australia Hong Kong South Africa Jamie Campbell Tel: +44 (0) 20 7597 5038
Rod Clarkson Tel: +61 (0) 2 9293 2278
Will Robbins Tel: +852 3187 5098
Hayden Smith Tel: +27 (0) 21 416 1401
USA Thomas Lawrence Tel: +1 212 2595604
Matt Martin Tel: +61 (0) 2 9293 2168
Alistair Roberts Tel: +852 3187 5097
_____________________________________________________________________ Investec Bank plc is authorised and regulated by the UK Financial Services Authority.

Registered in England and Wales (No.

489604).

Registered office at 2 Gresham St, London EC2V 7QP. Investec Asset Finance Plc is a subsidiary of Investec Bank plc.

Registered in England and Wales (No.

2179313).

Registered office at Reading International Business Park, Reading RG2 6AA. We may monitor e-mail traffic data and the content of email.

Calls may be monitored and recorded. This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed.

If you have received this email in error please notify the sender.

This e-mail is subject to terms available at the following link: www.investec.co.uk/emaildisclaimer.

By communicating electronically with us, you consent to these terms. _____________________________________________________________________ _____________________________________________________________________ This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http://www.symanteccloud.com -------------------------------------------------------------------------------- CONFIDENTIALITY NOTICE AND LEGAL LIABILITY WAIVER: The content of this email and any attachments are CONFIDENTIAL and may contain privileged information.

If you are not the addressee it may be UNLAWFUL for you to read, copy, distribute, disclose or otherwise use the information contained herein.

The content of the message and or attachments may not reflect the view and opinions of the originating company or any party it is representing.

If you are NOT the intended recipient then please email back to ------------------------------------------------------------------------------------