close
Ashanti Mailing List

Join our distribution list for direct access to exclusive corporate opportunities

* Indicates a required field
Logo
Please enable images to view this content
24 January 2019 07:49 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average24,57624,404171.000.7012.77
S&P 5002,6392,6336.000.2212.23
NASDAQ7,0267,0205.000.0813.45
FTSE 100 Index6,8436,901-59.00-0.852.35
DAX 3011,07211,090-19.00-0.174.12
CAC 40 Index4,8404,848-7.00-0.154.63
Nikkei 225 (Japan)20,59420,623-29.00-0.142.12
HKSE27,00827,0053.000.015.29
SSE Composite Index2,5812,5801.000.052.14
S&P/TSX Composite Index15,20815,234-25.00-0.1710.36
NZ 509,1039,106-3.00-0.034.46
US Volatility (Vix)20
Overseas Market Report

US sharemarkets were higher on Wednesday. Shares in IBM rose 8.5% after its profit beat analyst forecasts. Shares in United Technologies rose by 5.4% and shares in Proctor & Gamble rose by 4.9% in response to their earnings results. But technology stocks were generally lower. And White House economic adviser Kevin Hassett warned that the government shutdown could result in the economy contracting in the March quarter. US President Trump said that the US was doing well in trade talks with China. The Dow Jones index was up 171 points or 0.7% after earlier being up 296 points. The S&P500 index was up 0.2%. The Nasdaq index was up 5 points or 0.1%.

Global oil prices fell around 0.7% on Wednesday. Investors were focused on the potential for progress in the US-China trade dispute but potential for softer global economic growth in 2019. Brent crude fell by US36 cents or 0.6% to US$61.14 a barrel and the US Nymex price fell by US39 cents or 0.7% to US$52.62 a barrel.

Base metal prices rose by between 0.3-1.5% on the London Metal Exchange. Copper was up the least with zinc up the most.

The gold futures price rose by US60 cents an ounce or less than0.1% to $1,284 an ounce. The spot gold price was trading near US$1,284 an ounce in late US trade. Iron ore was unchanged at US$74.60 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent61.1461.50-0.36-0.5913.60
Oil - West Texas crude52.4852.62-0.14-0.2723.40
Gold Spot $/OZ1,283.001,283.000.700.061.12
Silver Spot $/OZ15.4015.400.000.004.02
Iron Ore72.2072.90-0.60-0.862.53
Thermal Coal Newcastle99.2099.200.000.00-2.46
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8961,87818.000.94-0.60
Copper Mar-18 ($US/lb)2.662.650.100.04-0.49
Lead ($US/t)2,0212,0138.000.413.09
Nickel ($US/t)11,62811,516112.000.977.71
Zinc ($US/t)2,6282,58840.001.532.92
Tin ($US/t)20,81420,560254.001.247.43
Uranium ($US/lb)29.0029.000.000.001.05
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,9135,9095.000.086.36
S&P/ASX 2005,8485,8444.000.086.45
ASX 24 Futures5,792
Australian Market Report

Wednesday 23 January - close. The Australian share market has clawed back some of its earlier losses to close lower with the financial and energy sectors weighing the heaviest. The benchmark S&P/ASX200 index was down 15.1 points, or 0.26 per cent, to 5,843.7 at 1630 AEDT on Wednesday, while the broader All Ordinaries was down 15.6 points, or 0.26 per cent, lower at 5,908.7

Ashanti Headlines

OZ Minerals Limited (OZL.ASX, 922ps, m.cap A$2.98B with 323.9m SOI, Cash $505m, Copper Explorer /Developer)

  • OZL released a strong set of results for the Dec Qtr this morning. Highlights below:
  • Prominent Hill copper and gold production exceeded 2018 guidance with AISC and C1 costs below guided range; mine life extended to 2030
  • Carrapateena project in peak construction and on schedule for first concentrate production in Q4
  • Unaudited 2018 net revenue circa $1,115 million
  • Cash balance at $505 million after growth investments
  • Carajás province optimisation continues; high-grade copper returned from Pantera drilling
  • Gold production guidance raised for 2019
  • 2019 focus on delivering Carrapateena and other growth projects, whilst achieving current year production and cost targets
  • MD and CEO Andrew Cole commented, “2018 was a strong year all round for OZ Minerals. Operationally this marks the fourth year we have met or exceeded copper guidance at Prominent Hill. From a growth perspective, we marked several milestones towards achieving our strategy of becoming a global copper focused miner. The Carrapateena project is now in peak construction, the West Musgrave project is in Pre-Feasibility Study (PFS) and a platform for growth has been established in the world class Carajás and Gurupi mineral provinces in Brazil."
  • Please see link to full announcement here
  • Please call the desk on +61 8 6169 2668 should you wish to discuss further

Ashanti notes that the West Musgrave Project continues to feature prominently in OZL reporting as the PFS advances with positive early resource infill drilling results. This boads well for JV Partner Cassini Resources CZI.ASX, mkt cap A$29m.

Berkeley Energia Ltd: (BKY.ASX, 50cps, m.cap A$130.6 with 258.4m SOI, Cash $99.8m, Uranium Developer)

Highlights:

  • Permitting Update:
    • The Company has received a number of favourable assessments from various regulatory bodies including two from the Nuclear Safety Council relating to the pre-operational Surveillance Plan for Radiological and Environmental Affections and the pre-operational Surveillance Plan for the Control of the Underground Water. The Company awaits the recommendation report from the Nuclear Safety Council to the relevant Minister.
    • The Company has been informed that the local municipality remains unable to grant the Express Resolution on the award of the Urbanism Licence due to a number of outstanding items. These outstanding items have been previously disclosed and are currently being addressed by the Company.
    • The Salamanca mine is being developed to the highest international standards and the Company's commitment to the environment remains a priority. It holds certificates in Sustainable Mining and Environmental Excellence which were awarded by AENOR, an independent Spanish government agency. The Company has been re-awarded both certificates following a consultation process with the agency.
  • Uranium market:
    • The spot uranium price continued to strengthen during the quarter, ending at US$28.50per pound, up 4% since 30 September 2018.
    • The fundamentals for uranium remain very strong with continued supply disruption being met by a recontracting cycle for US and EU utilities; and continued increases in global nuclear capacity.
    • The Company has 2.75 million pounds of U3O8 under contract for the first six years, with a further 1.25 million pounds of optional volume, at an average price above US$42 per pound.
  • Exploration:
    • Soil samples collected near the Salamanca mine has, in addition to uranium, noted significant anomalies for other elements such as gold, lithium, cobalt, tin and rare earths.
    • The company has applied for twelve new investigation permits for all the other elements covering more than 350 km2
  • Engineering Studies:
    • The Company continues to undertake reviews of the engineering design of the project.
  • Balance Sheet:
    • The Company is in a strong financial position with A$100 million in cash.
  • 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.

Have a question? admin@ashanticapital.com.au

ERA Communications