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10 January 2019 07:37 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average23,87923,78792.000.39-2.23
S&P 5002,5852,57411.000.41-2.00
NASDAQ6,9576,89760.000.87-0.90
FTSE 100 Index6,9076,86245.000.662.75
DAX 3010,89310,80489.000.832.55
CAC 40 Index4,8144,77340.000.841.50
Nikkei 225 (Japan)20,42720,204223.001.10-3.73
HKSE26,46225,875587.002.272.76
SSE Composite Index2,5442,52618.000.71-1.56
S&P/TSX Composite Index14,80514,605200.001.370.52
NZ 508,9358,947-12.00-0.143.17
US Volatility (Vix)20
Overseas Market Report

US sharemarkets rose again on Wednesday on optimism about US-China trade talks. The US Trade Representative's office said China pledged to purchase "a substantial amount" of agricultural, energy and manufactured goods and services from the United States. The Chinese delegation will travel to Washington for more trade talks on January 22. At the close of trade the Dow Jones was higher by 90 points or 0.4% after trading in a 209 point range. The S&P500 index was up by 0.4%. The Nasdaq index was up by 60 points or 0.9%.

Global oil prices rose by around 5% on Wednesday. Investors continue to bet that there will be progress on the US-China trade dispute. Resolution of the dispute should serve to boost global economic growth and thus demand for oil. Brent crude rose by US$2.72 or 4.6% to US$61.44 a barrel and the US Nymex price rose by US$2.58 or 5.2% to US$52.36 a barrel.

Base metal prices were mixed on the London Metal Exchange. Zinc and aluminium fell by up to 0.8% while other metals rose by up to 0.9%.

The gold futures price rose by US$6.10 an ounce or 0.5% to $1,292 an ounce. The spot gold price was trading near US$1,293an ounce in late US trade. Iron ore fell by US45 cents or 0.6% to US$74.50 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent61.4458.722.724.63-0.37
Oil - West Texas crude52.1652.36-0.20-0.382.27
Gold Spot $/OZ1,293.001,294.00-0.70-0.053.90
Silver Spot $/OZ15.7015.800.00-0.028.37
Iron Ore71.0071.70-0.60-0.886.25
Thermal Coal Newcastle98.1097.800.300.31-4.34
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8321,846-15.00-0.79-6.10
Copper Mar-18 ($US/lb)2.662.660.300.09-2.17
Lead ($US/t)1,9601,9555.000.26-1.16
Nickel ($US/t)11,18411,11272.000.643.12
Zinc ($US/t)2,5142,531-18.00-0.69-6.25
Tin ($US/t)20,09519,945150.000.755.67
Uranium ($US/lb)29.0029.000.000.00-0.17
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,8545,83815.000.264.02
S&P/ASX 2005,7905,77812.000.214.29
ASX 24 Futures5,725
Australian Market Report

Wednesday 9 January - close. The Australian share market has posted a third straight day of gains thanks to growing optimism about the US-China trade negotiations and the continued surge in oil prices. The benchmark S&P/ASX200 index closed up 55.9 points, or 0.98 per cent, to 5,778.3 at 1615 AEDT on Wednesday. The broader All Ordinaries was up 55.1 points, or 0.95 per cent, at 5,838.4.

Ashanti Headlines

Greenland Minerals Limited: (GGG.ASX, 6.9cps, m.cap A$78.2m with 1,132.6m SOI, Cash $7.7m, Rare Earth's Developer)

  • Greenland Minerals Ltd has completed test work to finalise and further de-risk the optimised flotation circuit for its Kvanefjeld Project.
  • Through mid‐2018, representatives from the Institute of Multipurpose use of Mineral Resources (IMUMR) and Baotou Meng Rong Fine Materials Co Ltd (BTMR) laboratories visited Perth to evaluate the flotation process flow sheets developed by each group.  Following the test work in Perth, BTMR was selected to continue the development and validation of their flotation circuit. BTMR has played a key role in the technical overhaul of the Mountain Pass rare earth operation in the USA, where Shenghe is also a shareholder.  
  • Further testwork by BTMR in China has resulted in outstanding simplifications with key highlights including: 
    • Circuit operates consistently over a broad temperature range;
    • No regrinding or de‐sliming circuits are required;
    • Reduced reagent consumption through improvements to the water chemistry without increased capital expenditure;
    • Reduced reagent consumption assisted by the removal of 80% of fluorine in process water with positive impacts on environmental management.
  • These benefits will reduce both operating and capital expenditures, with increased concentrate REO grades at high recoveries (optimised grade-recovery produces >22% REO concentrate grades with recovery in excess of 80%). This provides greater flexibility to project implementation and major efficiency of refining mineral concentrates. 
  • Pilot plant work is now planned for 2019
  • Managing Director Dr John Mair commented “The progress made through 2018 on technical optimisation was excellent, with extensive test work completed in both Australia and China. Shenghe’s experience, along with the leading technical input of their consultants has led to significant improvements in flotation performance.  Importantly, these efforts will fast‐track and further de‐risk project implementation and avoid operational issues encountered by some producing rare earth operations in their start up years.  The optimisation program has resulted in developing the simplest, most efficient flotation circuit possible while minimising impacts.”
  • A link to the full announcement can be found here
  • Please contact your adviser or the desk or +61 8 6169 2668 should you wish to discuss further.

Pensana Metals Ltd: (PM8.ASX, 1.8cps, m.cap A$21.6m with 1,202.2m SOI, Cash $4.6m (Sept Qtr 18), Rare Earths explorer)

  • Ashanti facilitated a crossing of 100m shares in PM8 yesterday. This provided an orderly exit for a major shareholder and was placed with Australia and Asian institutions.

Have a question? admin@ashanticapital.com.au

ERA Communications