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Coffee with Samso Episode 36 with Brad Underwood, Chairman & Managing Director, Galileo Mining Limited (ASX: GAL) Nickel has never been my geology, so I tend to leave it to the experts and Galileo Mining Limited, a resources company that comes out of the stables of renowned prospector Mark Creasy, certainly falls into that category. The Fraser Range is one of the “mineral provinces” that I have admired from afar and it’s where Galileo’s has its main project, the Fraser Range Nickel Project. There were promising results from its drilling campaign and now it’s drilling again, with all indications that it may come up with more promising results. The recent successes Galileo and Legend Mining perked my interest, together with Nova Nickel Mines and the Tropicana Gold Mines over the last decade.  Many companies in this arena have come and gone, all except the tenements owned by Mark Creasy, and that’s why I have an interest in these projects. The Fraser Range Project covers two zones of the extensive Fraser Range geological belt, known for the world-class Nova nickel-copper-cobalt mine discovered by Sirius Resources in 2012. Galileo’s northern Fraser Range tenement is 80km from the operating Nova mine, while the southern tenements are just 30km from the mine. Galileo is targeting Nova style nickel-copper-cobalt mineralisation in the Fraser Range and has a deep level of experience in the region. Galileo has Joint Ventures with the Creasy Group over highly-prospective tenements in the Fraser Range and also 100% ownership of its Norseman Project, located adjacent to the town of Norseman in an infrastructure-rich area of Western Australia. The Norseman Project area is less than 10km from the company’s current JORC cobalt-nickel resources and includes numerous areas with potential for further cobalt discoveries, as well as additional nickel and copper prospects. Galileo was originally privately owned by Mark Creasy and listed on the ASX in May 2018, raising AUS$15 million in IPO funding. Mark Creasy continues to be the largest shareholder, controlling approximately 31 percent of the company. ASX-listed miner Independence Group ASX: IGO) and Mineral Resources’ founder Chris Ellison are among the company’s top five largest shareholders. Galileo Chairman & Managing Director Brad Underwood spent eight years as General Manager of the Creasy Group’s exploration at the Fraser Range and Norseman. Some key points he made in our conversation included: It's a great place to explore, we've seen the value creation with Sirius and the Legend mining results they've released recently; it's a good area to make discoveries in because the value proposition from any resource that comes out is very strong There have been no discoveries in the Fraser range that haven't occurred either on Creasy group joint venture ground or 100% owned ground, so his mark has been there so long and he’s spent a large amount of money in the area, I think at the last count over forty million dollars, that he really has a genuine first mover advantage in understanding the belt. I think the market recognises the history we've had in the Fraser range and our chances of success are weighted accordingly We're currently running an air core drilling programme of around eight to ten thousand litres that'll give us a first pass test under cover and we’ll come back and do more deeper drilling after we've completed that… more drilling means more chances of success and success is what we're after. Watch the interview here or see the video above. For further information about Coffee with Samso and Rooster Talks visit: samso.co.au 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

Rooster Talk Episode 18 with Mark Anderson, CEO, Foundation of Indigineous Sustainable Health (FISH) This episode of Rooster Talk has Mark Anderson from FISH (Foundation for Indigenous Sustainable Health) talking to us about the issues of Australian Indigenous intergenerational issues. This is a topic that I have wanted to speak on for many years, Why are we not celebrating our Australian Indigenous culture. There is a perception that we are but I feel that in practice, in reality, I don’t feel that is the case. I really liked how Mark has summarised the case in that to move forward, we need to understand the issues and the history of the Australian Indigenous people. I don’t mean to understand their culture, but to understand their unfortunate history with the coming of the non-indigenous man. In some ways, all sides need to reconcile their past issues and work together as there is great richness in the Australian Indigenous culture. I believe that Australia is missing one element in making it a great nation. This missing link is to embrace the history that makes this nation great, the embracing of the indigenous history and way of life. 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 38 with Don Smith, Managing Director, Lithium Consolidated Limited (ASX:Li3) This is a fascinating conversation with Don Smith from Lithium Consolidated Limited that gives great insights into various aspects of real exploration. His company’s projects are not on a mega-scale, but what these projects lack in size they more than make for in outstanding technical potential. In recent years many projects have claimed the “neurology” title, but few of them can stand up if you look into the technical aspects of their claims. What Lithium Consolidated has is the best combination of a great big old heat source in association with a structurally altered greenstone group of rocks. Whether you get a deposit out of it is another matter, but without those factors to start with you’re already way back in the line. Little to no cover is another great asset and combined with the other geology, makes Lithium Consolidated projects worthy of being on anyone’s watchlist. Some highlights of Don’s observations include: There's an element of taking things step by step because I think what’s missing in a lot of the exploration spaces is that systematic science driven way of doing things, but we're also focused on the commercial reality We have more of a narrow focus on what can be found here in Western Australia and it certainly exposes our investors to a few things that are less conventional here in Western Australia but certainly no less relevant, and VMS is one of them and the IRG intrusive-related gold system is another one; we seem to have both of those happening in that same area so it's very exciting There's no going around that the capital markets are always difficult for exploration but I think because we have a good story that we're already getting some interest so that's a very positive side. The thing about exploration is…it's about trying to remove the element of error. If you've got a hundred percent error and you do things that remove that, the chances of you having success will obviously be higher and that's what we aim to do through our data-driven scientific methodical process, but also with the ability to bring that to commercial outcomes as well Watch the interview here or see the video above. For further information about Coffee with Samso and Rooster Talks visit: samso.co.au 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

Rooster Talk Episode 19 with Andy Jiang, Consultant, Tourism and International Trade Andy Jiang returns to Rooster Talk and picks up what we discussed a month ago. Has the Dust settled for the Tourism Industry and what is happening with the China – Australia trade war. Andy Jiang and I crossed paths nearly 10 years ago when he was the Director of Corporate Finance for Deloitte in Perth, Western Australia.  After his time with Deloitte, he moved on to Tourism Australia where he held the position of Head of Asia Development and General Manager, China. Since then, he has moved on to having his own business and practising his craft in the same sector. Andy is a Shanghai native who grew up in Texas. I am fluent in Mandarin and actively trade in the financial derivatives market. Rooster Talk is about engaging industry participants and allowing them to share their knowledge. I sought Andy out to participate in Rooster Talk because of his time in the frontline of the Tourism sector. China is Australia’s biggest business partner and to be in charge of this sector requires a person with a well-balanced mind. Andy speaks in a thoughtful manner and you can hear the measured words he uses in the chat. The take away from this Rooster Talk is that the Tourism Industry is in for a hard recovery but it is not all bad news. Nothing will replace the income from International tourism but innovation and resilient thinking will create new opportunities. I hope you find this Rooster Talk as invigorating as I did because what was shared is a wholesome street understanding in China international trade. For further information, contact me on noel.ong@samso.com.au or seek Andy Jiang out from his Linkedln profile. 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

Rooster Talk Episode 20 with Veronica Lind, Business and Marketing Strategist, Vermilion Pinstripes In this episode of Rooster Talk, Samso is talking to Veronica Lind from Vermilion Pinstripes, who is a “Modern Marketing” practitioner. I met Veronica through my Rooster Talk with one of her clients, My Blue Tea.  I was impressed with her website and the way it was managed and she introduced me to the creator of the website. To cut a long story short, I contacted Veronica and we had a great conversation about marketing and business development. I engaged Veronica to refocus and re-label Samso. Rooster Talk – Episode 014 – The Malaysian Superfood – My Blue Tea. “Vermilion Pinstripes is the creator of growth” Vermilion Pinstripes is an international modern sales marketing and communications agency driven by a singular mission: To help businesses thrive with confidence. We harness the power of our collective expertise in business, communications, marketing and technology to help brands achieve their goals. This is through our Modern Marketing framework which guides teams to orchestrate the customer’s journey as one voice, one brand. We are operating in The Experience Economy today and Modern Marketing empowers experienced B2B business, marketing and communications professionals on their journeys of growth for their brands. One of our common discussion topics was Branding. We discussed the need and why and how people don’t succeed in this area due to a lack of understanding and how to practice good branding. I felt that this was a great topic to share and with Veronica’s “Modern Marketing” way of getting messages out to the marketplace. Today, we all look at marketing as a myriad of social media platforms. Market participants are not utilising all the tools and at the same time, they are also overemphasising the many tools as opposed to utilising quality tools. It was this reason that I felt it wise to share Veronica’s thoughts and how she views the art of Branding in today’s business community. I hope you will get some value from the interview and will add to your marketing experience. Watch the interview here by clicking this link or see the video above. Before you watch the video, remember to click here Subscribe to the Samso Media Channel or click on the Subscribe button at the end of the video. For further information about Coffee with Samso and Rooster Talks visit: www.samso.com.au or contact noel.ong@samso.com.au 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 40 with Christian Easterday, Hot Chili Limited (ASX: HCH) Hot Chili Limited (ASX: HCH) has been one of my favourite companies on the ASX lately as they are progressing towards the realisation of their Tier-1 Copper-Gold Porphyry project in Chile. Christian Easterday is back telling us what has been happening since our last conversation. In that episode he described what Hot Chili is all about and the delights of a Porphyry story. Coffee with Samso – Episode 032 – A Giant Copper-Gold Porphyry Story In the midst of a global crisis, Christian has been able to create a path to production and the releasing of the potential of the Giant Cortadera Copper-Gold Porphyry deposit. About Hot Chili Limited Hot Chili (HCH) is an ASX-listed Australian mineral exploration company, well advanced in developing its portfolio of copper projects on the coastal range in Region III, Chile. Since listing on the ASX in 2010, the Company has successfully discovered and delineated the Productora copper deposit, established a substantial Mineral Resource and Ore Reserve, and completed a JORC 2012 Compliant Pre-feasibility study. The Company continues to assess value accretive opportunities and is very pleased to have secured an option to acquire a 100% interest in a major, privately-owned, copper-gold porphyry discovery, named Cortadera, adjoining the Company’s Productora and El Fuego copper projects, located on the Chilean coastal range. Hot Chili is partnered with Chile’s largest iron ore miner, Minera del Pacíico S.A. (CMP), who own 20% of the Productora project, and their parent Company CAP SA are also major shareholders in the Company. Hot Chili is managed by an experienced Board and supported by a dedicated consulting and advisory team. Our corporate governance processes promote responsible decision making and the highest standards of ethical behaviour and accountability. Christian Easterday Christian is a geologist with over 17 years of experience in the mineral exploration and mining industry. He holds an honours degree in geology from the University of Western Australia, a masters degree in Mineral Economics from the Curtin University of Technology and a masters degree in Business Administration from Curtin’s Graduate School of Business. Mr Easterday has held several senior positions and exploration management roles with top-tier gold companies including Placer Dome, Hill 50 Gold and Harmony Gold, specialising in structural geology, resource development and mineral economic valuation. For the past eight years, Mr Easterday has been involved in various aspects of project negotiation. This work has involved negotiations and valuations covering gold, copper, uranium, iron ore, nickel, and tantalum resource projects in Australia and overseas. Mr Easterday is a member of The Australian Institute of Geoscientists. When I read the latest announcement from the company, I saw two key aspects that tell a great progressive story. These two factors are, The relationship that is being created with the Chilean government on the mining of Productora. Amongst the news, there was the subtle mention of the upgrade in the high-grade core within Cortadera. I wanted to speak to Christian and get his views on these key points which I believe are important to the progression of the company. There is also the confidence that shareholders have shown in placing extra funding into the company in their recent capital raising. In conclusion, this is slowly becoming to emerge as an interesting company to keep on your watchlist. I hope you find it an interesting object lesson in understanding what these giant porphyry deposits can become and a great lesson in exploring and defining a copper-porphyry deposit. Watch the interview here or see the video above. For further information about Coffee with Samso and Rooster Talks visit: samso.co.au 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

Rooster Talk Episode 8 with Tony Cunningham, Director & Founder, CPS Capital In this episode of Rooster Talk, we are talking about COMPLII with Tony Cunningham. Tony is the founder of CPS Capital which is a stockbroking firm based in Perth, Australia. He is also the founder of Stocks In Play. Tony and I have known each other since the mid-1980s and it was a great conversation about what COMPLII is about and how this is changing the way brokers in the stock market are raising funds. The efficiency and the speed of the process are what COMPLII is all about. 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 39 with James E Marsh, Andromeda Metals Limited (ASX: ADN) The much anticipated Pre-Feasibility Study (PFS) for Andromeda Metals Limited (ASX: ADN) is finally published. James Marsh (Managing Director) talks to us about what is in the study and what it means to the company. Andromeda Metals Limited (ASX: ADN) Andromeda Metals Limited is an Australian Securities Exchange-listed company (ADN) with a focus on developing the Carey’s Well halloysite-kaolin deposit in South Australia The company has built a highly prospective exploration portfolio of projects covering 5,374 sq km within 19 exploration licences located in South Australia, Queensland and Western Australia. Andromeda Metals (previously Adelaide Resources) was incorporated on 23 December 1993 and subsequently listed on the ASX on 11 September 1996. The Company’s head office is in Adelaide, South Australia. Andromeda Metals’ vision is to be a sustainable industrial minerals producer of high-quality halloysite-kaolin and high purity alumina material and thus providing shareholders with a sustainable financial return on their investment in the Company. James E Marsh BSc (Hons), MAusIMM James Marsh is an industrial chemist and holds tertiary qualifications in chemistry and physics. He has extensive experience across a wide range of industrial minerals spanning a 25 year period, including senior technical and marketing roles with two global market leaders. He previously worked for 7 years as Business Development Manager for Active Minerals Australia, part of the Active Minerals International group, a worldwide leader in the production and marketing of kaolin and gel quality attapulgite clay minerals. Mr Marsh has been instrumental in developing and launching industrial minerals products into established and new applications globally and has a successful track record in general management and sales. The market has been anticipating this PFS for a while and the recent share price movement prior to the release was in anticipation of something extraordinary. However, the decrease in share price after the release of the PFS is in no indication of the quality of the PFS. My thoughts are that the decreasing share price is due to market trading rather than a reflection of poor results from the PFS. In this chat, James highlights all the major points that reflect that the company’s path forward is well and truly on track and according to plan. What viewers should take away from this Coffee with Samso is that the potential upside of Andromeda Metals is just about to be realised and shareholders should realise that James is fully invested in this story. My conclusion has not changed since our first Coffee with Samso late last year. This company has a product that is not easily found in a combination of quality and delivery. The two most important part of the project, that being quality of resource and logistic to market, is well covered and is under controlled. The PFS, at an early stage, is showing that the playability of the project is on the right path. Remember to subscribe to the Samso Media channel as well and click on the Like button as well. Feel free to leave any comments below. Watch the interview here or see the video above. For further information about Coffee with Samso and Rooster Talks visit: samso.co.au 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 41 with Scott Williamson, Managing Director of Blackstone Minerals Limited (ASX: BSX) This latest Coffee with Samso has Scott Williamson, Managing Director of Blackstone Minerals Limited (ASX: BSX), giving us an update on what has been happening with their flagship Ta Khoa Nickel Sulphide project in Vietnam. I have been watching the progress over the last 6 months and Scott has been busy getting a strategic partnership secured with EcoPro. EcoPro is a South Korea – based company engage in the battery and environment material business. EcoPro manufacture cathode active materials and precursors for Lithium-ion batteries. The partnership with EcoPro will secure the future of the project in delivering an end-user to the process of mining and delivering nickel to the EV industry. Blackstone Minerals Limited (ASX: BSX) is a company that is listed on the Australian Stock Exchange (ASX) which is exploring and mining nickel sulphide. The company has projects in Australia, Vietnam, and Canada. The Ta Khoa Nickel Project - Vietnam The Ta Khoa Nickel-PGE Project is located 160 km west of Hanoi in the Son La Province of Vietnam and includes an existing modern nickel mine built to Australian standards, which is currently under care and maintenance. The Ban Phuc nickel mine successfully operated as a mechanised underground nickel mine from 2013 to 2016. Previous project owners invested more than US$136m in the capital and generated US$213m in revenue during a 3.5-year period of falling nickel prices. The project was placed into care and maintenance in mid-2016 during some of the lowest nickel prices in the past 10 years. Existing infrastructure associated with the project includes an internationally-designed 450 ktpa processing plant connected to local hydro grid power with a fully-permitted tailings facility and a modern 250-person camp. My interest in Blackstone Minerals stems from the fact that investors seeking a position in the nickel sector should put BSX on their watchlist. The reason is that you are looking at a company that has a nickel mining operation that has an almost completed web of operation structures to mine and process nickel. The mine is located within the economic hub of South Korea, Japan, China and Vietnam/Indochina. This region will be the future of all Electrical Vehicle manufacturing in the coming future. Having an operational mine within the backyard of end-users will be advantageous. In the Coffee with Samso, we get to hear about the progress of the project and what path lay ahead in the coming months. Conclusions My thoughts after the conversation are that patience is the key as the end result will undoubtedly be bright. The demand and the certain shortage of supply will be the impetus of a rising nickel price. This will mean that the patient and astute investors will no doubt be smiling in time. Remember to subscribe to the Samso Media channel as well and click on the Like button as well. Feel free to leave any comments below. For further information about Coffee with Samso and Rooster, Talks visit: www.samso.com.au or contact noel.ong@samso.com.au 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

Rooster Talk 22 In this episode of Rooster Talk, I spoke with Mohamed Mughal (Mo), Founder & Chief Executive Officer of First Forte Consultancy about what is happening in the Middle East in regards to investments. Mo is based in Dubai and he tells us that the Gulf states are open for business. Apparently, the investing appetite is getting large and they are looking abroad to place their funds. Equity capital is looking at Gold and REE predominantly seeking near production or strategic projects. IT across all industries are doing well and the funding out of this Gulf states are gearing up to potentially help Australia decouple from Chinese capital funding. First Forte is based in Dubai with representation in London and Asia. First Forte offers a boutique professional service and is committed to delivering comprehensive consultancy advice by leveraging our experienced senior professionals' knowledge and long-standing business relationships within North America, Europe, Asia, Australia; and the GCC (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE). The founders of First Forte have extensive investment banking and financial market experience in the international capital markets of North America, Europe and Africa and will introduce its selected clients to a targeted group of qualified investors in Europe, the Middle East, South Africa and South Asia region which includes Sovereign Wealth Funds, Public Pension Funds, Corporate Pension Funds, Foundations, Endowments, Financial Institutions and Family Offices. If you have any questions, please contact me at noel.ong@samso.com.au PODCAST About Mohamed Mughal Mohamed Mughal (Mo) is the Founder & Chief Executive Officer at First Forte Consultancy. Mo has spent 17 years in the financial industry and covered the Middle East for more than 8 years. His product coverage has ranged from Investment Banking, Asset Management, Brokerage, FX, Derivatives and Credit & Rates. 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

May 2020 was kind of a D-Day for the glove making sector. The KLSE (Kuala Lumpur Stock Exchange), where the world's largest producers congregate, had one of those light bulb moments where investors pulled into all the glove makers. The run was exceptional as you can see in Figure 1. Figure 1. Share price charts for the biggest four glove manufacturers in the KLSE. (source: Investing.com ) The glove sector has been doing exceptionally well in the last decade but this May, it took a turn for the stratosphere. If anyone ever doubts the seriousness of COVID-19 , think again. Speaking to punters from Malaysia, the run was short of spectacular. Just so that readers get an appreciation of the run, these companies are not your penny stocks, they are companies with a market capitalisation in the billions. Figure 3, taken from a research note by CGSCIMB on 15th July, gives a good summary of the nature of these companies. As you can see from the charts, those investors were making up to 10 baggers depending on when you got on the train. Supermax Corporation Berhad (SUPM) was the best performer with punters getting in at RM1-RM2 and its now RM17.70 on Friday (17th July 2020). This is also after the sector correcting up to 10%. The price is now higher than before the correction. When you compare that to the previous Research Note by the same company on June 23rd 2020, the number has changed significantly. Remember that we are talking about a one month difference. Hartalega Holdings added USD4B to its market capitalisation, and Top Glove Corporation has added nearly USD5B to its value. Where do we think this demand is coming from? It is obvious that COVID-19 is a major cause of this run, aided by the global uncertainty of when this will come to an end. There is a school of thought that this will become a virus that the world has to live with for a long time. If this is the case, Figure 5 below will not end the way it is drawn. Year-on-year growth of 10% for the next three years may actually be severely underestimated. As you can see in Figure 5, the previous virus incidents created spikes but they were followed with a decline in growth however, the general curve is one that is rising. When you look at what happened in the past with SARS, MERS , H1N1 and EBOLA, the world did not stop. The world did not stop in unison with any veracity. The next three-year projection in Figure 5 is theoretical in nature hence if you look at what the virus is doing around the world, one would have to re-evaluate the potential growth of these companies. Robustness of the Sector In the week beginning 13th July 2020, the heavyweights of the glove industry in Malaysia took hiding of 5% to 8%. A total of USD2B was wiped out collectively. This would be a big number except that these giants of glove-making have made 100s of percentage growth and significantly more billions in growth. Companies like Supermax have not only recovered but also increased their share price from the previous high. Whatever the sceptics may want to say, investors are voting with their money and supporting these companies every discount they get. Even Top Glove, who had a detention notice from the US Customs at the end of the week, could do no wrong. Time will tell how Top Glove gets over this bump on the road but what is wrong for Top Glove will only mean a supply shortage. And a shortage in supply will be great news for the rest of the sector. For those that understand the concept of inelastic demand , this sector is the king of that economic term. Buyers of gloves are telling me that they are paying 50% deposits and every new order is being met with a new higher price. Who would not want a business like this? Secret Component of the Glove Sector Nitrile gloves which are the higher value of the gloves are made from synthetic materials. No need for rubber trees. The main component is Nitrile Butadiene Rubber (NBR). NBR is a copolymer . A copolymer is a polymer that is made from several species of monomer . NBR is made by a process of copolymerization which binds butadiene and acrylonitrile . Acrylonitrile enhances the chemical resistance, while butadiene creates flexibility and tear resistance of nitrile gloves. Looking at Figure 6, I believe that the glove makers are enjoying a healthy margin. I read an article that the price of NBR was supposed to go up in 2019. As you can see, that was not the case and the combination of a steep decline in raw material cost and a rising selling price is a recipe for many happy investors. The greatest asset these nitrile glove manufacturers have is that their raw materials are synthetic. Hence, that means they are grown in a "lab" and there is little motivation to be costly, at this stage anyway. Is this a COVID-19 boom story? There is no doubt that the onset of COVID-19 has been a catalyst. However, the "rubber gloves" industry has been doing well for a long time. Many investors forget that the use of gloves has been increasing and not just in the medical sector. The increasing number of industries using gloves have been increasing as well. It is also noted that the use of PPE (Personal Protective Equipment) has been increasing as well, especially in the use of masks. What is interesting in all this rush for better hygiene is that the average person in the ASX (Australian Stock Exchange) does not even know which company is getting rewarded for the market demand. Most investors don't even know how to get a part of this journey. When you look at the share price charts in Figure 1, there is no doubt that the magnitude of COVID-19 is a major catalyst for the demand. What punters will need to decide is how long is this "New World" going to be finished. Will this be a permanent New World Order? If so, will the demand for PPEs such as gloves be ongoing? Conclusion For Malaysian investors, the glove-making industry is well known. Malaysian companies have been in this industry for a very long time. My understanding of this industry, by comparison, is still very fresh. However, looking at numerous research reports and talking to industry experts over the last few months have definitely opened my eyes and ears to what makes this sector click. When I looked over the charts in Figure 1, I was amazed and disturbed that there has been so much growth in such a short time. The word "Bubble" comes to mind. This is even more enhanced when I looked at the charts closer at the previous bullish trends over the last eight years. Figure 7 and Figure 8 show this journey and you can see the ups and downs over time and then the high lift in May this year. This period is not related to SARS nor H1N1. The sharp drop looks like it was dividend paid. The Financial Report dated March 2014 seems to indicate that its dividend paid. If this geologist has read the report correctly, this makes for interesting thoughts. The two charts showing a run and paying dividends has put my fears aside about the "Bubble". This was all during so-called "normal" trading situations. The COVID situation has stopped the world and this is by no means a "normal" situation. Hence the large rise could be argued to be "normal". What will power this further will be dependent on how long this "New World Order" takes to settle. In my opinion, I believe that the world we live in from here onwards will look nothing like what was pre-COVID. COVID-19 and the potential next COVID-19 will mean that the expectancy of hygiene will be reflected in the increase and sustained use of basic PPE. We are not going to walk around in "sperm suits" but I think the wider use, and the wide common availability of masks and gloves will be here to stay. As for glove manufacturers, the continued money-making habits are not going away anytime soon. 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

As the EV race hots up, an aspiring nickel producer prepares to take on the mantle of being the next nickel sulphide producer. BSX share price has risen significantly over the last couple of months, so what has changed? Samso talks to Scott Williamson, Managing Director of Blackstone Minerals Limited (ASX: BSX) about its aspiration to produce nickel with its Ta Khoa Nickel project in Vietnam. The company is based in Perth, Western Australia. The Ta Khoa Nickel-Copper-PGE Project is located 160 km west of Hanoi in the Son La Province of Vietnam and includes an existing modern nickel mine built to Australian standards, which is currently under care and maintenance. The Ban Phuc nickel mine successfully operated as a mechanised underground nickel mine from 2013 to 2016. Previous project owners invested more than US$136m in capital and generated US$213m in revenue during a 3.5-year period of falling nickel prices. The project was placed into care and maintenance in mid-2016 during some of the lowest nickel prices in the past 10 years. Existing infrastructure associated with the project includes an internationally-designed 450 ktpa processing plant connected to local hydro grid power with a fully-permitted tailings facility and a modern 250-person camp. Since commencing maiden drilling in August 2019, Blackstone has made significant progress at Ta Khoa, drilling over 9,000 m of diamond core in more than 47 holes into the Ban Phuc DSS deposit and the highly prospective King Cobra discovery zone. An initial scoping study evaluating mining and processing options is well advanced, including potential in-country downstream processing to deliver high-value nickel sulfate into Asia’s rapidly expanding electric vehicle (EV) industry. The recently announced MOU with Asia’s largest and the world’s second-largest EV battery cathode manufacturer, Ecopro BM Co Limited represents a significant step toward making this a reality. Scott Williamson is the Managing Director and this Rooster Talk is to chat over what Blackstone has been doing since our last Coffee with Samso. The share price has risen significantly over the last couple of months and I wanted to know what has changed. Scott shares with us the recent drilling activities and results from the last campaign. We also touched on the sentiment of the current capital market and the medium to long term predictions of the nickel price. I was interested to know what Scott thinks about how the changing world events will impact the strategy and plans of Blackstone Minerals. Listen to this podcast to find out more About Scott Williamson Experienced Managing Director with a demonstrated history of working in the mining & metals industry. Skilled in Open Pit & Underground Mining, Corporate Finance, Investor Relations and Project Planning. A strong business development professional with equity capital markets experience graduated from West Australian School of Mines and Curtin University of Technology. Scott holds a WA First Class Mine Manager’s Certificate and is a member of the Australasian Institute of Mining and Metallurgy. 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. Share to Grow 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