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Coffee with Samso Episode 1 with Mark Strizek In this segment of Coffee with Samso, Mark Strizek and Samso discuss the issues and solutions of low grade and impurities that are common in many tungsten projects.  There are few projects that appear to be clean and of sufficient grades.  Beneficiation by ore sorting is a fairly simple solution that can make substandard grades become more than economical.  However, some projects have impurities that will not allow ore sorting to be effective. Tungsten projects are very sensitive to the chemistry of all the minerals present. Unfortunately, the nature of the current tungsten deposits out in the market place tend to have one issue or another.  Take King Island’s Dolphin project. Good grades, in fact, the grade is better than very good but why has it not happened for all this time. Their ore cannot be sorted but they have the highest grade that I know of in the tungsten space. Maybe their time is now just around the corner? In this segment, the discussion is centred around these thoughts. I hope this short excerpt will give viewers good feedback.  The full episode can be seen in the links below. Full Version of Episode 001 of Coffee with Samso Individual Segments for Episode 001 Coffee With Samso Ep 001_ 01_Introduction Coffee With Samso Ep 001_02_Mark Strizek talks about his experience with Chinese Tungsten experts. Coffee With Samso Ep 001_03_Solution to Low-Grade Tungsten Projects Coffee With Samso Ep 001_04_Dealing with impurities in Tungsten projects. Coffee With Samso Ep 001_05_Tungsten Projects Coffee With Samso Ep 001_06_Australian Tungsten Projects and the Tungsten market. Coffee With Samso Ep 001_07_Tungsten market and Conclusion Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Making it simpler to view Coffee with Samso To help out subscribers, I have separated the episode into headings: Individual Segments for Episode 001 Coffee With Samso Ep 001_ 01_Introduction Coffee With Samso Ep 001_02_Mark Strizek talks about his experience with Chinese Tungsten experts Coffee With Samso Ep 001_03_Solution to Low-Grade Tungsten Projects Coffee With Samso Ep 001_04_Dealing with impurities in Tungsten projects. Coffee With Samso Ep 001_05_Tungsten Projects Coffee With Samso Ep 001_06_Australian Tungsten Projects and the Tungsten market. Coffee With Samso Ep 001_07_Tungsten market and Conclusion Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 1 with Mark Strizek In this segment, Samso and Mark Strizek discuss why Australian projects may have CAPEX advantages over the other projects in the world.  As I mentioned before, in the tungsten project world, the possibility of success is few and far between due to the complexity and geological nature of the deposits.  There are only a handful of good deposits that will be able to carry substance over the life of Mine. The Cantung mine and Mactung Deposit. The Cantung and Mactung deposits are extremely high-grade, but they are no longer in operation due to the high OPEX for both mines.  When Cantung was in service, it was by far the highest-grade producing mine. Mining reserves were grading in the 0.80% range as you can see in the table below. The Probable Mineral Reserves table from the website of the now-bankrupt company, North American Tungsten Corporation Limited is listed below.  Final products include a premium gravity concentrate (G1), containing on average, 65% WO3; a flotation concentrate containing, on average, 35% WO3 and a copper concentrate averaging 28% Cu. The Mactung deposit was never mined, from what I can remember. I could be very wrong here. The project had a resource of 33Mt @ 0.88%WO3.  The Mactung Project was forecast to run at 2,000 tonnes per day from an underground operation using conventional long hole plus cut and fill mining methods. The ore will be processed into both a premium gravity concentrate (67% WO3) and a flotation concentrate (55% WO3). According to the information on the North American Tungsten website, the Mactung deposit fact sheet indicated that the Feasibility study came up with the following points, Mine life is 11.2 years for the underground mine with the potential to expand by 17 years with an open pit, exploiting near the surface, lower grade indicated and inferred mineral resources. The capital expenditure estimate is comprised of a project capital cost of CDN$356.5 million plus a contingency of CDN$45.6 million. Based on an 11.2-year mine life and the base case parameters, the project’s pre-tax net present value is calculated as follows: Discount Rate Pre-Tax Net Present Value 8% CDN$276.8 million 6% CDN$346.4 million The development cost for the mine is high, and with the current tungsten price, one would argue that such high risk would not be helping owners of the project to find capital. Barruecopardo Tungsten Project The Barruecopardo Tungsten Project by Ormonde, which appears to be a low-cost tungsten mining project is now in the advanced stage of construction. When fully operational, Barruecopardo will account for around 13% of the non-Chinese global supply of tungsten concentrates. The new mine development is based on an initial open pit mining operation with a 9-year mine life, producing 260,000 metric tonne units (“mtu”) of tungsten trioxide (WO3) per year, or 2,060 tonnes of tungsten metal, contained in a high-quality concentrate, following a one year ramp-up period. Ormonde holds a 30% interest in the Project company, Saloro SLU, which is funded to develop the mine through a US$100 million financing package provided by funds managed by 70% joint venture partner Oaktree Capital Management. This project has taken a long time to get to this stage. Around 2013, this project was already ready to be mined, but for some reason, it never happened.  In my time within the tungsten industry, I have always wondered why several of these “better grade” deposits/projects never happened. The Sangdong Mine (Source: Wikipedia) The Sangdong mine located in South Korea is one of the largest tungsten mines in the world.  The Sangdong tungsten deposit was discovered in 1916.  The mine is located 187 km southeast of Seoul, approximately three hours’ drive via expressways and local sealed high ways. Temperatures rise to a maximum of about 30℃ during the wet summer months of June to August. The winter period is relatively dry and extends from October to March, with freezing temperatures occurring during the period December to March. After a decade from mine closure,  mining rights of Sangdong mine were acquired by Woulfe Mining Corporation via Sewoo Mining Corporation in 2006 and established its wholly owned subsidiary, Almonty Korea Tungsten Corporation (ex-Sangdong Mining Corporation). Almonty Industries, specialising in tungsten projects with operation mine in Spain, Australia and Portugal, completes the acquisition of Woulfe Mining Corporation in September 2015. All information and data along with many detail investigation and analysis about Sangdong mine which had been closed for over 15 years were well organised and summarised in the “Feasibility study” and “NI 43-101 Technical report” drawn up by Almonty Industries. The Sangdong project was the project that sparked a lot of interest due to the link of Warren Buffett.  One of his companies was looking at the project and created a lot of attention.  Structurally it has some complexity, but as Mark mentioned, it looked like Almonty has worked out what they need to do. While we are mentioning Almonty, it is also appropriate to say that they are the only company that has multiple mineable tungsten projects.  They also own the Los Santos project in Spain and the Panasqueira Mine in Portugal. Conclusion I could go on for a long time talking about all these deposits, but I hope this will give readers a start if more research is your thing.  Otherwise, I hope I have given some context to this segment of my conversation with Mark Strizek.  I have included the links to the other parts below. The tungsten industry is a very small unique sector as there are only a handful of players and the opaque nature of the tungsten pricing and the market, in general, makes it hard for investors to find a good company to back.  I am guessing that the Australian projects will soon become world players once this uncertainty starts to settle down. You can view the other segments of the conversation via the links below. Individual Segments for Episode 001 Coffee With Samso Ep 001_ 01_Introduction Coffee With Samso Ep 001_02_Mark Strizek talks about his experience with Chinese Tungsten experts. Coffee With Samso Ep 001_03_Solution to Low-Grade Tungsten Projects Coffee With Samso Ep 001_04_Dealing with impurities in Tungsten projects. Coffee With Samso Ep 001_05_Tungsten Projects Coffee With Samso Ep 001_06_Australian Tungsten Projects and the Tungsten market. Coffee With Samso Ep 001_07_Tungsten market and Conclusion PODCAST Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 1 The Australian Tungsten projects are a little bit of a mystery for me.  When you do some research on the market, one could be forgiven to think why would anyone want to play in this space. The price is not favourable and the market is not very receptive to supply.  The Chinese market views the tungsten sector in a much different way to the rest of the world.  The way this work is that China appears to have the upper hand. They have the bulk of world resource and the absolute dominance on demand dynamics. In Australia, there is no doubt that the stand out project has been King Island Scheelite’s (ASX: KIS) Dolphin project.  The information that is in the public domain appears to be very good. What everyone cannot understand is why is this not being developed.  The current pricing may not be the best but with those grades, one would think that you could make some money. King Island is the most western large island in the Bass Strait, located between Victoria and Tasmania. The Dolphin Project is situated on the south-east coast of the island, near the mining town of Grassy. The Dolphin Tungsten Mine operated between 1917 and 1992 when it was closed due to extremely low tungsten prices, rather than a lack of reserves. Over the last few years, KIS has concentrated on optimising a redevelopment strategy for the Dolphin Tungsten Project, which contains a JORC 2012 compliant Mineral Reserves of 3.14Mt at a grade of 0.73% WO3 (at 0.2% cut-off). Mineral Resources, including the Mineral Reserves, total 9.6Mt at a grade of 0.90% WO3 (at 0.2% cut-off). The current development plan envisages an 8-year open cut mine producing a concentrate for supply into the Ammonium Paratungstate market. Tungsten Mining  (ASX: TGN) which bought the Watershed Tungsten project in Queensland is another player that is worth keeping on the watchlist.  They have raised some good money over the last 12-18 months so that should give them a good run at developing the projects that they hold in their portfolio. I am wondering why are that they still on a project acquisition trail with their recent announcement to enter Hatches Creek in the Nothern Territory. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 2 with Paul Werndly, Naturopath, Healthy Cooking Coach and Educator In the second episode of Coffee with Samso, Paul Werndly is talking about the Glycemic Index (GI).  The term is widely used but not fully understood.  It is one of the most important measures that we should have to help us maintain a good diet and stay away from becoming a diabetic.  In China, nearly 11% of the population has diabetes and up to 39% are considered prediabetic.  That is over 300 million adults that fall into that category. Paul Werndly is a very astute and knowledgable person in the space.  I met him over at a function at the launch function held at No Menu Restaurant in Mount Lawley.  Fantastic food.   We got talking and we found that we had a good understanding of where the health and food industry is heading so we thought that it was a good idea to have a Coffee with Samso. What I want to highlight in this conversation is three main points,  firstly it is the understanding of what GI is and what it can do to help monitor our sugar intake.  Secondly, it is the topic of what is the consequence of not monitoring our sugar levels.  The last point is the commercial upside for companies that are swimming in this space. If you thought that the milk “gold rush” was attractive, you have got to understand what this “diabetic” issue will mean to a company selling products that can reduce this issue. Companies such as Hollista Colltech (ASX: HCT), the Sunrice Group, Ricegrowers Limited (ASX: SGL) and CSR (ASX: CSR) are some of the companies that I have looked at who are supplying low Gi products. I hope you find the information useful and please share and leave comments. What is GI? Rice and Glycemic Index The diabetic problem in China and Malaysian Favourites Conclusion PODCAST You can listen to the conversation via a podcast below. Paul Werndly – Details Paul Werndly ND is a Naturopath, Healthy Cooking Coach and an Educator with 25 years of experience. He has lectured in all areas of Natural Medicine, history and philosophy. Paul has also been a journalist for the West Australian Newspapers and a Natural Health Professional. His speaking experience ranges from corporate presentations, cooking classes, designing and presenting short courses and seminars. He has worked with businesses such as Chevron, Gorgon Project, The City of Perth, Disabilities Services, Red Cross, Royal Flying Doctors Holy Name Child Care and many other corporate entities. Paul has also worked in cafes, organic food stores, restaurants and as a healthy cooking coach for over two decades. He has also authored two books on social psychology and social dynamics. Paul Werndly has the following details, https://www.linkedin.com/in/paul-werndly-625a9b19/ https://www.facebook.com/PaulWerndlyND/ Email: natural.healhcare@hotmail.com What is the Glycemic Index (GI)? According to Diabetes Australia, the following is the definition of GI, The glycemic index or GI ranks carbohydrates according to their effect on blood glucose levels. The lower the GI, the slower the rise in blood glucose levels will be when the food is consumed. The effect may differ from person to person. Diabetes Australia recommends that people with diabetes have moderate amounts of carbohydrate and include high fibre foods that also have a low GI (not all high fibre foods have a low GI). Some research has shown that by eating a diet with a lower GI, people with diabetes can reduce their average blood glucose levels. This is important in reducing the risk of developing diabetes-related complications. GI numbers are to be used as a guide only as individual foods do not have the same response in all people with diabetes. What is low and what is high GI? Low GI foods are foods with a GI less than 55. Intermediate GI foods are foods with a GI between 55 and 70. High GI foods are foods with a GI greater than 70. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Rare earth elements like scandium, neodymium, and dysprosium are used in numerous products like smartphones, electric car motors, wind turbines, satellites and jet engines. These 17 prized metals are looking to be China’s biggest bargaining chip in winning the trade war and offer a great investment opportunity. Our team has uncovered a company that is poised to benefit from the current situation and believe this is stock is set to surge.  Chinese rare earth prices are set to climb further beyond multi-year highs. Demand is forecast to increase all while an embargo can cut off much of the needed supply creating an ideal situation for those this company. Big Threats and Big Consequences China Supplies at least 95% of the world’s rare earths and the escalating trade war between the two superpowers presents an opportunity for investors. The key role these minerals play in many products means China could strike a heavy blow against the US. On May 29th the official newspaper of the Chinese Communist Party made their third threat “The U.S. must not underestimate the ability of the Chinese side to hit back” The US is extremely dependant on critical mineral imports and many experts believe they will move forward with an embargo. If China was to stop exports to the US for a long period of time it could cause a huge shock to the entire US economy. The national security concerns are enormous and the government is searching for solutions. With this move China can effectively shoot-down the entire F-35 stealth fighter production program, missile systems and satellite development. The US is looking elsewhere for supply Increasing trade with allies and partners will help reduce the likelihood of disruption to critical mineral supply chains. The US has a historical trade relationship and geographic proximity with Canada and experts believe that supply chains will be shifted over the next 12 months. Just this month the US laid out  a federal strategy  to ensure secure and reliable supplies of Critical Minerals that mentioned Canada as a key supply option. Defence Metals Corp. TSXV: DEFN OTCQB: DFMTF FSE: 35D Defense Metals is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the electric power market, military, national security and the production of green energy technologies, such as high-strength alloys and rare earth magnets. The company is able to capitalize on the current macro changes in the Rare Earth market through its Wicheeda Property in British Columbia. The Wicheeda Property consists of 6 mineral claims covering an area of 1,780 hectares, located approximately 80 km northwest of the city of Prince George, British Columbia. The company recently received a 5yr exploration permit (in May 2019) for the Wicheeda property which includes approval for up to 51 drill site locations. The company had $800k at the end of 2018 and is now very well cashed up upon completion of a $1million dollar Private Placement. Drilling will commence this summer which means many potential catalysts that can drive the stock price up.  Project Highlights 2 specific rare earth minerals Monazite and Bastnasite-Parisite with 60% of the REE contained in Monazite and 40% in Bastnasite-Parisite Results from a recent 30-tonne bulk sample include 1.77% lanthanum-oxide, 2.34% cerium-oxide, 0.52% neodymium-oxide, and 0.18% praseodymium-oxide which the Company considers potentially economically significant, for a total of 4.81% LREO (light rare-earth oxide) Extensive local infrastructure – Roads, Railway, Water, Power, Natural Gas and Labour Share Structure There are 23.75M shares outstanding and currently, insiders and friendlies hold roughly 75% or 18mm shares. The float of this stock is very small coming in at only 6 million meaning that this stock is susceptible to large gains. Bottom Line The growth potential in Rare Earths in North America can lead to profits for investors looking to take advantage of the Macro effects of the Trade War. DEFN has a proven asset base, large resource and major exploration program already underway. This stock’s small $3.8 million dollar market capitalization has the potential to skyrocket. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

Almost 25 years ago, I fell in love with the Fancy Yellow Diamond.  A colleague introduced me to the hobby of selling diamonds in 1994, and I met some fascinating people in that part of my life.  There was this dealer in Melbourne (who later past away with cancer), who was a nice person, introduced me to these fancy yellow stones and I have never forgotten them. As you can see in the picture above, what is there not to like.  The colour is so enticing.  My fascination or obsession with yellow diamonds is the colour, the intense and consistent colouring that creates beauty over a colourless stone.  This fascination is more than cosmetic.  It is the fact that in nature, the act of having inclusion of nitrogen in the crystal structure created what we would call a defect. A defect in the crystal structure that was so consistent that it created a work of such beauty. Some Samso fact on Diamonds? To understand a Yellow diamond, one needs to follow some minor things. Diamonds are not stable at normal temperature and pressures. Normal as in on your finger.  On your finger, your diamond is technically turning to graphite/carbon.  It will take a long time to do that, but what you are wearing is technically a defect item :-).  There is no shortage of diamonds, but with a tight marketing system, prices are kept at enterprising values.  This system is a win-win system. Natural diamonds come in all sort of shapes and sizes.  They also come in different chemistry. Clear white stones are traditionally the most sought after diamonds (Figure 1).  While there are differences in colour between D, E, and F diamonds, they can be detected only by a gemologist in side by side comparisons, and rarely by the untrained eye.   Remember this statement when you go and buy your diamond cause while they look similar, the pricing from a D to an F is dramatically different. Most retail diamond “experts” will tell you that when buying a good diamond, the clarity (Figure 2) is essential.  They are correct, but a stone that has an IF (Internally Flawless) Clarity with G Colour may be just as excellent but cheaper than a D and IF.  Those that tell you that you should buy it for investment need their head examined.  The only value diamond rings hold sentimental value.  I am sure all jewellers out there will disagree with me, but unfortunately, that is the truth, and those people that have tried to sell their rings will attest to that statement. For me, the beauty of the stone, the setting and the story of the stone or the story of the occasion are what determines a buy.  The photo of the ring below was purchased because it was a stone from Blina, a known diamond project that has ceased operation.  In my opinion, that history of the stone set in a ring gives more added value that a stone that has no source history. Fancy Yellow Diamonds Yellow diamonds are deemed “fancy” when a stone displays more colour than the “Z” colour grade based on the GIA D-Z colour grade scale. Why? Because it makes more sense, and really, all diamonds should be graded for their face up colour. But it is much harder to do.  It is when they are in the Fancy range where they gain their value. Fancy is the term that describes the intensity of the colour and the price for these stones will tend to rise rapidly.  The Fancy Yellows are “rare”, and consistent Fancy colour is hard to find. I mean a naturally sourced stone. Yellow diamonds are the second most common colour after brown diamonds.  Argyle Diamond Mine was the first to market the brown diamonds as Cognac and Champagne diamonds.  This marketing strategy was very effective in that it created the market for unwanted brown diamonds or non-gem quality stones.  When I see some of these stones, they are bringing a new perspective to the market that is just traditionally one type, one colour and one style of appreciation. The Fancy Yellow diamond marketability is strong.  When Tiffany, the jeweller, did an off-take with Ellendale Diamond Mine (not closed), they were reported to have paid up to $3,000 per carat for the fancy yellows coming out from the mine.  That is an indication of the demand for these stones.  Stones such as the one described below, the 34.17-carat yellow diamond, that is sourced from the Yakutia Region of Siberia, Russia, would have been worth a lot of money. Where do we find these Yellow diamonds? As we mentioned earlier, yellows are not rare. They are plentiful.  I wished I had taken a photographed the stones that were shown to me by the dealer in Melbourne in the mid-1990s.  The internet tells me that yellow diamonds are found primarily in Africa, including Angola, Central Africa, Congo, and Sierra Leone, but has also been discovered in Brazil, Australia, and Borneo . The Ellendale mine when it was operating supplied nearly 50% of the world supply.  The mine is no longer in operation.  My interest lies in the existing sources that are in Australia.  The Blina project and potentially looking at the Ellendale alluvials and pipes is exciting.  Companies such as Gibb River Diamonds (ASX: GIB) are active, but they are struggling to find funding.  The theory sounds great, and if proven to be accurate, you are going to see some exceptional stones.  A consistent supply of these yellow stones would be a valuable asset.  The old saying of One in a million, well finding a source of quality yellow stones in Australia would be one in a million. There have been several companies in the last eight years that are floating in the space of chasing the Ellendale and Blina alluvials.  I have not heard much about them. However, I did recently hear that some private company has picked up the Smoke Creek Alluvials. I looked at buying that project from the vendors three to four years ago.  The Smoke Creek alluvials have a resource, and this project holds some potential bonuses.  The likely discovery of the Argyl pink diamonds. I am sure that within the package od stones, there will be an abundant amount of browns as well.  In all the potentials out there, I am most optimistic with those that are trying to develop projects within the Ellendale and Blina diamond projects.  These are where the potential for discovering Fancy Yellows are the greatest and has the most history.  As they say, where there is smoke, there must be a fire.  At least a fire that potentially can be started. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

Coffee with Samso Episode 1 The tungsten market has been something of a non-happening space of late.  The market at one stage looked like it was going to go for a run but somehow ran out of steam.  In 2018,  tungsten prices were reported to be around US340 MTU. However, the price seems to have taken a backward step to the US$300 mark.  The prevalent uncertainty is causing a lot of market participants to be uncommitted to projects. US-China Trade War The recent rumblings with the US-China trade war seem to have raised some issues that would give the tungsten market the feeling of some light at the end of the tunnel.  Take the Arafura Resources Limited (ASX:  ARU) who before China making what I called, “The Statement”  was closing its doors.  The day after that statement, the company was in full flight, and everything was going to happen.  Although that has not happened to the tungsten industry, I do feel that the flow down effect will catch on.  The gold price is now creating so much positivity that gold producing companies are laughing and celebrating. Environment and Mining in China Mining in China has always been a luxury as the demands of the government translated into the work of the people. In the 1990s when a friend of mine was working in China, he told me that the way it works in China was the government would say that they need an amount of ore and the company would go and mine it.  There was no need to be economical.  As the country has progressed into a first world economy, this kind of business would no longer be viable. The onset of a big push to clean the country up with environmental constraints has added to the cost of mining.  The ageing mines in China are now being scrutinised and are being pushed to perform in a cleaner environment.  We all know that the mines in China have been operating for a long time, and the cost of changing your mining and processing style to be cleaner is going to be interesting.  I do think that a lot of the ageing mines are going to be struggling to make the grade in Xi Jinping’s new and cleaner China. The new environmental requirements are not just the demand of the party but the new more educated and more prosperous people of China is also asking for the changes.  It is this level of demand the fuels my belief that the cost of mining will impact on future output. First world economies have been putting up with the extra cost of doing business with environmental constraints, and the new member of this exclusive club will have to learn to do it.  If it meant that you could no longer be the number one player anymore, you would have to live with it. China is a wealthy nation now and wants better living standards.  The citizens demand a better life and the Government intends to create a harmonious place for its citizen.  Changes will happen, and I think the world will slowly see the grip loosening in China. Growth outside China As the focus has been on the rise and rise of China and the demise of the US economy, what is not a consistent focus is the recent recovery of the US economy and the growth of India.  Infrastructure in the US has been neglected for decades and is in great need for upgrades.  This has been a brewing investment pathway that will lead to a resource resurgence that will give tungsten a breath of fresh air. When you look at India, which is now the most populous nation on the planet, I think there is going to be a surge for resources soon. One will argue that the investments will not be anywhere near the levels spent in China, and that is a true statement.  What I believe is that the new age growth is going to benefit the strategic metals. You are not going to make a lead rocket nor an aluminium rocket.  However, metals such as tungsten are going to find its place and this new growth may give tungsten its place in the modern world. The AUD For Australian investments, many investors have not caught onto the fact that Australian projects make money in AUD and the falling AUD is an excellent thing.  Take the gold price, it is currently at USD$ 1430, but when companies sell the gold, it’s over AUD$ 2,000.  This is all happening while the AISC (“all-in sustaining costs”) has not changed.  Australian tungsten miners will reap the same rewards when that differential is more apparent in the tungsten price. Coffee with Samso completes the conversation discussing the components that will make the tungsten market something to watch over the next 24 months.  Several factors would change the fortune of the tungsten sector.  When you look at it in detail, one will have to agree that is is going to be a buoyant industry.  The companies that have a good project will be the one that will give shareholders value. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

This REE (Rare Earth Elements) industry that has been making more noise in the last few weeks is a bit of a mystery to most people.  The recent US-China trade war sparked the latest resurgence in pricing.  Before this event, the REE industry outside of China was pretty much a non-event.  The most promising story in town, which was that of Arafura Resources was almost a sunset industry.  In a matter of a few words from the Chinese government, the diminishing light at the end of the tunnel suddenly became a bright light of sunshine. I must admit that I have not been a fan of this sector because you are entirely at the mercy of the most significant player in town, The Chinese Panda.  Cute as he may be, but when he sits on you, you are not getting up.  In saying that, I do feel that the complete dominance of this sector by China does open up opportunities of being the one of few that the rest of the world will support. The REE sector is very tight, and those that have been in the game the longest will surely benefit the most.  A few searches on the internet and you will learn quickly about the dominance of China in this sector. Now that there is more excitement happening, there are some players that may well take full advantage of the uncertainty because of this tug of war between the US and China. What is Fueling this REE sector? One of the biggest and if not most significant uses of REE is in the permanent magnet industry.  According to a site called, Tech-FAQ ,  a  permanent magnet (ferromagnet) is a material that produces a magnetic field. Permanent magnets are made from ferromagnetic materials, such as iron. They are created when the material is placed inside a magnetic field. When the magnetic field is removed, the object remains magnetised. Permanent magnets have a continuous magnetic field and do not turn on and off as electromagnets do. Permanent magnets are the oldest type and are still used for a wide variety of applications today. These magnets have electrons moving in the same direction, and as more electrons align themselves, the magnetic field increases and become stronger. Standard magnets have electrons moving in a random manner.  This is as simple an explanation that I can come up with to explain the phenomenon of permanent magnets. If you are still wondering why they are so important, think about power generation and electric motors. The induction process for turbines and generators needs permanent magnets to turn mechanical motion into energy. They are also crucial for electric motors in many electronics using the reverse of the induction of electrical current to make mechanical energy. As you can see without the permanent magnet, we would not be able to take full advantage of the capabilities of electricity in modern devices. In our time of EV (Electric Vehicles), these little “slippery critters” are critical.  Currently, the whole EV story needs permanent magnets. Which ASX companies are involved? As I mentioned, I have not followed this sector in great detail, and I have just included the companies that I am familiar with for the moment.  I have chosen the better-known companies.  Lynas Corporation and Arafura Resources have been singing this song for a long time.  Hastings Technology was a bit later in the game.  The others I have just noticed and I have put them in my list to get some context.  I learnt about Greenland Minerals a while ago and it is a fascinating company. Alkane Resources is a gold miner with a polymetallic REE project in NSW.  In this instance, Alkane Resources will probably never make a play for this sector.  I can’t see that happening but they could get value from teh project if they were to JV it to a willing participant. Northern Minerals and Peak are pretty much unknown entities to me but I wanted to include them as they may be positioned in this sector better than I know. Lynas Corporation Limited (ASX :   LYC) Market Capitalisation:  AUD 1.5B Shares Outstanding: 662.50M Top 20 shareholders:  70.20% (2019) Arafura Resources Limit ed ( ASX:  ARU) Market Capitalisation:  AUD 51M Shares Outstanding: 639.90M Top 20 shareholders:  54.60% (2019) Hastings Techno logy Metals Limited (ASX:  HAS) Market Capitalisation:  AUD 160M Shares Outstanding: 711.50M Top 20 shareholders:  84.10% (2019) Northern M inerals (ASX:  NTU) Market Capitalisation:  AUD 100M Shares Outstanding: 1.15B Top 20 shareholders:  55.40% (2019) Alkane Resources Limited (ASX:  ALK) Market Capitalisation:  AUD 116M Shares Outstanding: 506.10M Top 20 shareholders:  51.50% (2019) Peak Resources Limited (ASX:  PEK) Market Capitalisation:  AUD 29M Shares Outstanding: 799.20M Top 20 shareholders:  42.60% (2019) Greenland Minerals Limited (ASX:  GGG) Market Capitalisation:  AUD 79M Shares Outstanding: 1.1B Top 20 shareholders:  62.70% (2019) My Thoughts. I am familiar with Arafura Resources and Hastings only because I had to deal with the company in the past. In 2015, while I was evaluating a project in the Gascoyne, I was put on notice that Hastings was doing a lot of drilling around an REE project.  This went on for a while, and when I read their story now, they are well advanced.  It is good to see that the company had the perseverance to hang around and had continued to do work on the ground.  I am sure they are all pleased to know that their time for picking the fruits may be close. For Hastings , I am surprised to see that the Top 20 shareholding is so high at 84.10%.  I am guessing that in the bad times, those shareholders that put in money would have been rewarded with cheaper shares.  Looking at their market capitalisation of 160M, the company does not appear to be overly expensive.  With the sector experiencing some buoyancy, I think this may be an exciting company. However, I think Arafura is looking more interesting from a market capitalisation point of view.  A market capitalisation of AUD51M is not very high.  I have seen some exploration companies with that kind of capitalisation and has nothing to show for it :-).  The share register appears to be more liquid and for a company with the Nolans project at the stage that it seems to be relatively cheap. Greenland Minerals have an enormous project in Greenland. So big that it will tip the scale of world REE monopoly.  For once, I will agree that this is a world-class deposit.  However, on the other side of the waterway, there is also another project that is held privately, which is a world-class deposit. How this pans out in the future, I am not sure.  There is no doubt that the projects are “gianormous proportions”, but I am not sure if they will take off.  Greenland Minerals have been playing here for a long time, and they don’t seem to be moving fast.  One will need to ask why is that so? I won’t comment on the other companies as I am not too intimate with their journey.  I am sure readers will DYOR for now.  I think this sector will be exciting, going forward.  Looking at the history of the industry, the recent brush with “death” may likely be a thing of the past.  The US-China trade war and the Chinese reaction may be sufficient for the industry to make sure they will not be hostage to one supplier.  This can be the same as the cobalt industry where the majority is coming out of the Congo. I do believe that the REE sector may have learnt a valuable lesson where the guarantee of supply must be protected.  Hence, those that can get to production quickly may become part of the protected species. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

Coffee with Samso Episode 3 with Paul Werndly, our resident food scientist This week, Coffee with Samso is all about superfoods and lupins.  An article from The West Australian about a local company making food products from Lupin inspired this episode. In this episode, Samso speaks to our resident food scientist, Paul Werndly, about the good sense of infusing lupin into our diet.  Lupins have a low glycemic index and are high in protein. As a product, Lupin is making a lot of business sense for aspiring entrepreneurs to get into this business.  Remember that the world population is now facing a diabetic epidemic of hundreds of billions of adults all over the world who are facing Type II diabetes.  To ignore this market is like neglecting the business sense of embracing the internet. The message from Coffee with Samso is that there are companies out there that are supplying these healthy alternatives.  It sure is more fun snacking on a packed of lupin chips than sliced carrots or slice celery sticks… Well, the thought of munching on “chip” feeling snacks is more appealing. PODCAST Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee With Samso Episode 4 with Thomas Redicliffe The latest episode of Coffee with Samso is a conversation that I have wanted to do for a long time.  Thomas Redicliffe is someone who has a wealth of knowledge in this sector. Tom is still working in the industry and seems to be the only diamond geologist in town 🙂.  In this episode, Samso talks to Tom about all facets of the industry. We focused on the following topics, What are the diamond exploration and mining sectors like these days? You were involved in the discovery of two of the best if not the world’s most significant mines in Argyle and Ellendale, can you share with us the journey and any noteworthy events? You mentioned to me before about how each mine has a characteristic that keeps them afloat, can you share with us some examples? What are your thoughts on the exploration industry now? Where would you go to start? Do you think that there will be another Argyle in Australia? Or in the world? Hope readers enjoy the conversation. PODCAST Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Coffee with Samso Episode 5 with Miguel Maron & Bryan Raeburn, Area5football and Australian Minifootball Federation In this episode of Coffee with Samso, we meet Miguel and Bryan, the President and Vice President of the Australian Mini Football Federation.  They are are the organisers of the 2019 Mini Football World Cup to be played in October 2019.  The World Mini Football organisation announced the go-ahead earlier this year. Viewers will find that this is a great concept.  The Mini Football World Cup could be a great way for entrepreneurs to get involved. The last world cup in Tunisia had a worldwide audience of 800M.  With this kind of audience, there are a lot of opportunities for brands to get noticed, especially local Brands in Western Australia and Australia. Bryan Raeburn is a director at Area5football and Vice President at Australian Minifootball Federation. Miguel Maron is a director at Area5football and President at Australian Minifootball Federation Australian Mini Football Federation Area 5 Football PODCAST Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso