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08 November 2018 08:03 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,18025,635545.002.13-1.16
S&P 5002,8142,75558.002.12-2.45
NASDAQ7,5717,376195.002.64-2.14
FTSE 100 Index7,1177,04177.001.09-1.60
DAX 3011,57911,48495.000.83-3.08
CAC 40 Index5,1385,07563.001.24-3.06
Nikkei 225 (Japan)22,08622,148-62.00-0.28-7.14
HKSE26,14826,12127.000.10-0.21
SSE Composite Index2,6412,659-18.00-0.68-2.77
S&P/TSX Composite Index15,36915,29377.000.50-3.62
NZ 508,9248,85570.000.79-2.43
US Volatility (Vix)16
Overseas Market Report

US sharemarkets rallied on Wednesday after the mid term election results were broadly in-line with market expectations. US President Trump signalled bi-partisan co-operation with the Democrats on policy initiatives that could support economic growth. The S&P health care (+2.9%) and technology (+2.9%) sectors both rose as fears of stricter regulations curbing growth eased. S&P Consumer Discretionary (+3.0%) stocks also performed well. Shares of United Health (+4.2%) and Amazon (+6.9%) led gains. Vulcan Materials' shares rose by 4.9% on hopes for an infrastructure plan. At the close of trade, the Dow Jones was up by 545 points or 2.1%. The S&P500 index was up by 2.1% and the Nasdaq index finished up 194 points or 2.6%.

Global oil prices fell on Wednesday as US crude output lifted and domestic inventories rose more than expected. The US EIA reported that domestic crude inventories rose by 5.783 million barrels in the latest week, above analysts' expectations for 2.433 million barrels. And US crude output hit 11.6 million barrels per day, a weekly record. Brent crude fell by US6 cents or 0.1% to US$72.07a barrel and the US Nymex price fell by US54 cents or 0.9% to an8-month low of US$61.67 a barrel.

Base metal prices mostly increased on the London Metals Exchange on Wednesday as the US dollar weakened. Aluminium rose by 1.9%. But zinc (-1.5%) fell to a 7-week low on easing supply concerns. Smelter margins in China are rising and production is expected to increase into year-end.

The gold futures price rose by US$2.40 an ounce or 0.2% to $1,228.70 an ounce. The spot gold price was trading near US$1,227 an ounce in late US trade. Iron ore fell by US$1.30 or 1.7% to US$74.50 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent72.0772.13-0.06-0.08-14.37
Oil - West Texas crude61.6861.670.010.02-16.97
Gold Spot $/OZ1,226.001,227.00-0.50-0.043.19
Silver Spot $/OZ14.6014.600.00-0.101.33
Iron Ore73.9073.700.300.3512.00
Thermal Coal Newcastle105.50103.502.001.88-7.22
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,9711,93536.001.87-7.34
Copper Mar-18 ($US/lb)2.742.74-1.20-0.44-0.89
Lead ($US/t)1,9051,88618.000.97-3.65
Nickel ($US/t)11,74411,70044.000.38-6.34
Zinc ($US/t)2,5022,542-39.00-1.53-6.19
Tin ($US/t)19,08619,0833.000.020.61
Uranium ($US/lb)29.0029.000.000.695.45
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,0135,98231.000.52-3.31
S&P/ASX 2005,9215,89724.000.41-2.94
ASX 24 Futures5,904
Australian Market Report

Wednesday 7 November - close. The Australian share market was lifted higher by banking and energy stocks on a choppy day's trading as investors awaited the result of US mid-term elections. The benchmark S&P/ASX200 index was up 21.7 points, or 0.37 per cent, at 5896.9 on Wednesday, while the broader All Ordinaries rose 0.39 per cent. The Australian dollar strengthened to a one-month high as the US went to the polls, buying 72.59 US cents at 1630 AEDT from 72.16 on Tuesday. The Democratic Party seized the legislative agenda from president Donald Trump by winning the House of Representatives.

Ashanti Headlines

MOD Resources Limited (MOD.ASX, 34.5cps, m.cap A$79.9m with 231.5m SOI, Cash $12.8m, Copper Explorer /Developer)

MOD has made excellent progress during the Sept qtr on the Feasibility Study for the 60Mt T3 Copper Project in the Kalahari Copper Belt in Botswana. Highlights below: 

  • MOD is nearing transaction completion for 100% of T3 Copper Project with a number of CPs now met:
    • MOD shareholder approval at the general meeting held 19th September 2018;
    • Regulatory approvals including Ministerial approval in Botswana for the transfer of the JV Exploration Assets and extension of PL190 (which includes the T3 Project); and
    • Transfer of a number of the JV Exploration Assets
  • Another important development during the quarter was a 20% increase in the T3 Feasibility Study throughput capacity for the planned T3 process plant to 3Mtpa, which will result in increased copper production. Improved project economics have been identified through recent metallurgical testwork results and commencement of the Botswana grid power transmission line, which will extend to within 12km from the T3 Project.
  • Drilling along the A4 Dome, 8km from the T3 Project, commenced during the June quarter with 19 holes completed to date. Many holes intersected two distinct styles of mineralisation including the regionally extensive NPF contact type mineralisation with three intersections >2% Cu, and many assays still pending. While still at an early stage, the proximity of A4 Dome to the planned processing plant at T3 makes it an attractive target to support the T3 expansion strategy.
  • Drilling also progressed at the large A1 Dome during the quarter with 6 widely spaced holes completed to date. Assay results are awaited from potentially significant visible intersections in two holes (MO-A1-005D and MO-A1-006D).
  • Drilling during the December quarter is shifting to test shallow targets for NPF contact type mineralisation at the T20 Exploration Project, which has just received DEA approval. If drilling at the T20 Exploration Project is positive it will reinforce the copper belt scale potential of MOD’s licences
  • MODs MD Julian Hanna commented, “With rapid progress on the Feasibility Study, the Company is actively pursuing options with several parties for conventional debt and other funding sources for T3 Project. We are very encouraged by the high level of interest shown and the potential for a range of excellent commercial outcomes. In addition, the Board is considering several strategic options to fund exploration of the unique regional potential across our vast licence holdings, while we develop the T3 Project.. We are also very pleased with progress on transferring and extending renewals for 100% of the area of our key JV licences, demonstrating the strong in-country support for MOD and its Botswana subsidiaries.”
  • The dual listing on the London Stock Exchange is now well advanced with the compliance listing planned for Q4 2018. The dual listing aims to enhance the international profile of MOD and improve access to UK and European institutional investors during this period of rapid activity and growth for the Company. There are very few copper developers and producers on the LSE and this listing provides an opportunity for MOD to be exposed to a far broader investment market at a time of rising copper demand and falling inventories
  • A link to the quarterly activities report can be found here
  • Please contact the desk on +61 8 6169 2668 should you wish to discuss further


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ERA Communications