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28 September 2018 07:57 AM
Overseas Market ReportCurrent
PreviousChangeDaily %
Monthly %
Dow Jones Industrial Average26,44026,38555.000.211.44
S&P 5002,9142,9068.000.280.57
FTSE 100 Index7,5457,51134.000.45-0.94
DAX 3012,43612,38650.000.40-0.73
CAC 40 Index5,5405,51328.000.501.01
Nikkei 225 (Japan)23,79724,034-237.00-0.994.31
SSE Composite Index2,7922,807-15.00-0.540.50
S&P/TSX Composite Index16,20516,16935.000.22-0.92
NZ 509,3009,28613.000.140.93
US Volatility (Vix)12
Overseas Market Report

US sharemarkets rose on Thursday, driven higher by gains in the newly-constituted communication services sector. Shares in Apple rose by 2.1%, Alphabet rose 1.2% and Facebook rose 1.1%. Investors were also encouraged by latest economic data. Banks were flat despite expectations that the Federal Reserve will lift rates again in December. The Dow Jones index finished higher by almost 55 points or 0.2%. The S&P 500 index rose by 0.3% and the Nasdaq gained 52 points or 0.7%.

Global oil prices rose on Thursday. The continued worry is that Iranian oil supplies won't be made up by other suppliers when US sanctions against Iran take force in November. However some analysts believe that Saudi Arabia may "quietly" pump more oil incoming months to restrain oil prices. Brent crude rose by US38cents or 0.5% to US$81.72 a barrel and the US Nymex price rose by US55 cents or 0.8% to US$72.12 a barrel.

Base metal prices mostly fell on the London Metals Exchange(LME) on Thursday as the US dollar strengthened. Nickel fell the most (down 2%) although tin lost just 0.2% and lead rose by 1.3%.

The gold futures price fell by US$11.70 an ounce or 1.0% to $1,187.40 an ounce. The spot gold price was trading near US$1,185 an ounce in late US trade. Iron ore rose by US20 cents or 0.3% to US$69.20 a tonne.

PreviousChangeDaily %
Monthly %
Oil Brent81.7281.340.380.477.23
Oil - West Texas crude72.1472.
Gold Spot $/OZ1,184.001,183.000.800.07-1.44
Silver Spot $/OZ14.3014.200.000.09-3.03
Iron Ore65.3065.000.300.385.32
Thermal Coal Newcastle113.70113.700.000.00-4.37
Coking Coal FOB ECP AUS0.
Aluminium ($US/t)2,0122,044-33.00-1.59-2.96
Copper Mar-18 ($US/lb)2.772.77-1.10-0.381.33
Lead ($US/t)1,9961,96927.001.35-3.55
Nickel ($US/t)12,47412,732-258.00-2.02-6.48
Zinc ($US/t)2,5272,554-27.00-1.05-0.55
Tin ($US/t)18,84018,880-40.00-0.21-1.05
Uranium ($US/lb)27.0027.
Australian Market ReportCurrent
PreviousChangeDaily %
Monthly %
ASX All Ords6,2996,308-8.00-0.13-1.78
S&P/ASX 2006,1816,192-11.00-0.18-1.96
ASX 24 Futures6,198
Australian Market Report

Thursday 27 September - close. The Australian share market has closed lower, dragged down by mining and banking stocks after commodity prices weakened and the royal commission's interim report looms. The benchmark S&P/ASX200 index was down 11.1 points, or 0.18 per cent, at 6181.2 points on Thursday, while the broader All Ordinaries index was 8.5 points, or 0.13 per cent, lower at 6299.3 points.

Ashanti Headlines

Eastern Goldfields Limited Enters into a $75m Recapitalisation Transaction

  • $75M recapitalisation plan resets and delivers strong balance sheet to underpin future growth.
    • $8.75M of interim funding to be received via the issue secured Loan Notes which will convert into ordinary shares.
    • Binding commitments for a $36.8M Placement received from sophisticated, professional and institutional investors.
    • Adaman Resources to perform up to $17.5M of In-kind services.
    • Conversion of the syndicated facility $9.6M and certain trade creditors $2.5M.• 
  • Adaman Resources, a provider of turnkey mining solutions, has executed a Recapitalisation and Services Deed for the provision of up to $17.5M of in-kind services to support near term working capital requirements.
    • Adaman will partner with Pit N Portal, the existing underground mining contractor at the Davyhurst Project, who will convert $2.5M of outstanding trade debts.
  • New leadership team with the proposed restructured board to leverage relevant industry knowledge and expertise.
    • Proposed board to comprise Peter Mansell, Craig Bradshaw, David Quinlivan, Keith Jones and Tony Patrizi.
    • Mr Craig Bradshaw to be appointed as Managing Director.
  • Revised operating strategy provides a clear path to achieve business improvement and develop the significant resource base owned in the Eastern Goldfields – 1.78Moz (21Mt @ 2.6g/t).
  • $5M entitlements issue to be offered to existing shareholders.
  • Current Directors to unanimously recommend that shareholders vote in favour of the resolutions required to give effect to the Recapitalisation.
  • Company to be renamed Eris Gold Limited.
  • Shareholders are not required to take any action at the present time. A shareholder meeting is expected to be convened in November to consider the resolutions required to give effect to the remaining Recapitalisation transaction.
  • Longreach Capital and Ashanti Capital have acted as lead managers in relation to the Recapitalisation.
  • A link to the full announcement can be found here
  • Please contact you adviser at Ashanti should you wish to discuss further

Adriatic Metals PLC (ADT.ASX, 47cps, m.cap A$61.5m with 130.8m SOI, Cash GBP4.6m, Polymetallic Explorer / Developer)

  • Adriatic has announced drilling results from the western extension to the high grade mineralisation at Rupice
  • Drill hole BR-10-18 continues to expand the high-grade zone surrounding the historic drill hole BR-79-89, returning:
    • 28m @ 10.8% Zn, 5.9% Pb ,271g/tAg, 3.4g/tAu, 0.5%Cu, and 61% BaSO4 from 236m and expands the mineralisation to the west.
  • BR-12-18 confirms the continuity and the high-grade nature of the interpreted mineralisation to the south of historic drill hole BR-79-89 (which was not historically analysed for precious metals):returning:
    • 18m @ 8.2%Zn, 4.2%Pb,131g/tAg,1.4g/tAu, 0.8%Cu, and 27% BaSO4 from 200m.
  • BR-13-18 confirms the continuity of mineralisation up dip from the thick and high-grade zones intersected in hole BR-5-18:returning:
    • 22m @ 0.6% Zn,1.2%Pb, 91g/tAg, 1.3g/t Au, 0.3% Cu, and 41% BaSO4 from 168m and,
    • 24m @ 14.8%Zn, 7.7%Pb, 167g/t Ag, 3.7/t Au, 0.7% Cu, and 53% BaSO4 from 220m.
  • Drilling continues with 4 rigs in operation.
  • Adriatic’s Chief Executive Officer, Geraint Harris commented,“It is very exciting that these holes not only expand the mineralised foot print but also continue to confirm the continuity of the thick mineralisation and the very high grades drilled in our 2017 and 2018 campaigns. They also demonstrate how much opportunity for additional precious metals content exists around the historical drilling, which was mostly not assayed for precious metals. This will provide significant upside once incorporated into our maiden Mineral Resource Estimate at Rupice”
  • A link to the full announcement can be found here
  • Please contact the desk on +61 8 6169 2668 should you wish to discuss further

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