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04 October 2018 07:53 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,82826,77454.000.203.38
S&P 5002,9262,9232.000.070.99
NASDAQ8,0258,00026.000.32-0.82
FTSE 100 Index7,5107,47536.000.480.70
DAX 3012,28812,339-51.00-0.42-0.48
CAC 40 Index5,4915,46824.000.432.78
Nikkei 225 (Japan)24,11124,271-160.00-0.666.23
HKSE27,09127,126-35.00-0.13-3.15
SSE Composite Index2,8212,79230.001.063.53
S&P/TSX Composite Index16,07216,01755.000.34-0.55
NZ 509,2829,294-12.00-0.13-0.11
US Volatility (Vix)12
Overseas Market Report

US sharemarkets were firmer on Wednesday. Investors were encouraged by stronger economic data. Shares in General Motors rose by 2.1% after Honda said it would invest $2 billion over 12years in GMs Cruise self-driving unit. The Dow Jones index finished up by 54 points or 0.2% to record highs. The S&P 500 index was up by 0.1% and the Nasdaq gained 25.5 points or 0.3%.

Global oil prices posted solid gains on Wednesday. The focus remains on upcoming US sanctions against Iran. Traders shrugged off data from the US Energy Information Administration showing that crude stocks rose by 8 million barrels last week. Saudi Arabia also said that it raised output to 10.7 million barrels per day in October and will raise more in November. Brent crude rose by US$1.49 or 1.8% to US$86.29 a barrel and the US Nymex price rose by US$1.18 or 1.6% to US$76.41 a barrel.

Base metal prices were mixed on the London Metals Exchange on Wednesday. Aluminium, nickel and tin rose with aluminium up 4.6%. But other metals fell with lead down 2%.

The gold futures price fell by US$4.10 an ounce or 0.3% to $1,202.90 an ounce. The spot gold price was trading near US$1,198 an ounce in late US trade. Iron ore was unchanged atUS$69.60 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent86.2984.801.491.7610.42
Oil - West Texas crude76.2376.41-0.18-0.249.10
Gold Spot $/OZ1,198.001,197.000.700.060.54
Silver Spot $/OZ14.6014.600.000.003.40
Iron Ore65.3065.000.300.385.32
Thermal Coal Newcastle113.90114.00-0.10-0.13-2.02
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)2,1982,10296.004.586.40
Copper Mar-18 ($US/lb)2.822.82-1.20-0.429.23
Lead ($US/t)2,0002,042-42.00-2.05-4.95
Nickel ($US/t)12,67712,421256.002.06-0.16
Zinc ($US/t)2,6782,685-7.00-0.268.44
Tin ($US/t)18,98218,94636.000.190.46
Uranium ($US/lb)28.0028.000.000.544.73
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,2656,24619.000.31-2.09
S&P/ASX 2006,1466,12620.000.32-2.34
ASX 24 Futures6,152
Australian Market Report

Wednesday 03 October - close. Higher commodity prices have boosted local material and energy stocks, and pushed the Australian share market to close higher. The benchmark S&P/ASX200 index was up 19.9 points, or 0.32 per cent, to 6146.1 points on Wednesday, while the broader All Ordinaries index was 19.4 points, or 0.31 per cent higher at 6265.2 points.

Ashanti Headlines

MOD Resources Limited (MOD.ASX, 38.5cps, m.cap A$89.1m with 231.5m SOI, Cash $17.3m, Copper Explorer /Developer)

  • MOD has reported further encouraging results from drilling at the 70% owned A4 Dome, 8kms west of the T3 Project 
  • Latest vein-hosted intersection MO-A4-008D:
    • 42.9m @ 1.0% Cu & 19g/t Ag from 257.5m downhole depth, including
    • 9.8m @ 1.4% Cu & 26g/t Ag and
    • 9.1m @ 1.5% Cu & 31g/t Ag
  • Latest NPF contact intersection MO-A4-005D:
    • 6.9m @ 1.7% Cu & 16g/t Ag from 471.1m downhole depth, including 
    • 3.6m @ 2.4% Cu & 24g/t Ag from 474m
    • 10 holes in the core of A4 Dome have intersected visible NPF contact mineralisation
  • Assay results for three NPF intersections to date all include intervals >2% Cu
  • Drilling focused on high-grade veins and NPF contact within 1.6km long Target Area
  • Assay turnaround for the large volume of samples at laboratory is being addressed
  • A4 Dome represents part of MOD’s T3 expansion strategy to define additional sources of ore within the T3 Dome Complex that could enable future increases in production through the proposed T3 process plant. The T3 Project Feasibility Study has made substantial progress and will be reported separately.
  • As announced on 4 September 2018, there are two distinctive types of mineralisation at A4 Dome, being localised vein-hosted mineralisation in the upper part of the dome and NPF contact mineralisation which may form a flat lying ‘blanket’ underlying the dome, 450-500m below surface.
  • MOD's MD, Mr Julian Hanna commented, "We're still in the early stages of understanding the A4 Dome, however we are encouraged by the potential for significant mineralisation within this large target. Two holes have intersected wide intersections of vein-hosted mineralisation and all ten holes into the core of the A4 Dome have intersected visible NPF contact mineralisation. The grades are also strong, with assay results from all three NPF intersections received to date including intervals greater than 2% copper at the base... “The proximity of A4 Dome to the planned T3 processing plant makes it an attractive proposition which supports our strategy to increase production above the current target of 30,000ktpa copper and build a long-term operation centred around T3.”
  • Please see link to the full announcement here
  • In our view, the current T3 Resource more than underpins MOD's current valuation (MCAP A$89M, EV of A$72M) and with 10 drill rigs active across the companies expansive landholding, we are expecting plenty of positive news-flow. We are particularly looking forward to the drilling of the T20 dome due to commence this month. 
  • Please contact the desk on +61 6169 2668 if you'd like to discuss further. 


Have a question? admin@ashanticapital.com.au

ERA Communications