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01 February 2019 07:31 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,00025,015-15.00-0.067.17
S&P 5002,7042,68123.000.867.87
NASDAQ7,2827,18399.001.379.74
FTSE 100 Index6,9696,94227.000.393.58
DAX 3011,17311,182-9.00-0.085.82
CAC 40 Index4,9934,97518.000.365.54
Nikkei 225 (Japan)20,77320,557217.001.063.79
HKSE27,94227,643300.001.088.11
SSE Composite Index2,5852,5769.000.353.64
S&P/TSX Composite Index15,54115,48556.000.368.50
NZ 509,0058,98519.000.222.20
US Volatility (Vix)17
Overseas Market Report

US sharemarkets were mixed on Thursday. Shares in DowDuPont fell 9.2% after the chemical maker's revenue fell short of forecasts. But shares in General Electric rose 11.7% after quarterly sales and cash flow beat fourth-quarter forecasts. Shares in Facebook rose by 10.8%, driving the Nasdaq higher. At the close, the Dow Jones index was down by 15 points or 0.1%. But the S&P500 index was up by 0.9%. And the Nasdaq index lifted by 99 points or 1.4%.

Global oil prices were mixed ahead of contract expiry. According to a Reuters survey, OPEC oil supply has fallen in January by the largest amount in two years, saying that "Saudi Arabia and its Gulfallies over-delivered on the group's supply-cutting pact while Iran, Libya and Venezuela registered involuntary declines". Brent crude rose by US24 cents or 0.4% to US$61.89 a barrel and the US Nymex price fell by US44 cents or 0.8% to US$53.79 a barrel.

Base metal prices rose by up to 1.4% on the London Metal Exchange with zinc doing the best although aluminium rose by just 0.1%.

The gold futures price rose by US$9.70 an ounce or 0.7% to $1,325.20 an ounce. The spot gold price was near US$1,320 an ounce in late US trade. Iron ore rose by US35 cents or 0.4% to US$85.40 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent60.8461.54-0.70-1.1413.09
Oil - West Texas crude54.0353.790.240.4518.98
Gold Spot $/OZ1,321.001,321.00-0.70-0.052.97
Silver Spot $/OZ16.0016.100.00-0.163.51
Iron Ore79.2076.103.104.1012.20
Thermal Coal Newcastle99.0099.30-0.30-0.30-2.99
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8921,8911.000.071.57
Copper Mar-18 ($US/lb)2.782.78-0.10-0.045.80
Lead ($US/t)2,1002,07425.001.214.61
Nickel ($US/t)12,40612,281126.001.0216.99
Zinc ($US/t)2,7302,69238.001.408.40
Tin ($US/t)20,93020,88545.000.227.22
Uranium ($US/lb)29.0029.000.00-0.521.40
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,9445,9377.000.114.11
S&P/ASX 2005,8715,8656.000.113.98
ASX 24 Futures5,811
Australian Market Report

Thursday 31 January - close. A strong performance by the energy and mining sectors was not enough to save the Australian share market from being weighed down by troubled financials at the close. The benchmark S&P/ASX200 index was down 22 points, or 0.37 per cent, to 5,864.7 at 1630 AEDT on Thursday, while the broader All Ordinaries was down 13.9 points, or 0.23 per cent, at 5,937.3

Ashanti Headlines

Independence Group NL: (IGO.ASX, 417cps, m.cap A$2,462.3m with 590.5m SOI, Cash $208.1m, Diversified / Base Metals Producer)

  • Independence Group NL released an impressive set of 2Q19 Financial Results despite softer base metals pricing
  • Underlying EBITDA for the Quarter of A$68M and underlying free cash flow of A$29M.
  • Cash balance increased from A$176M at the start of the Quarter to A$208M, resulting in a net cash position of A$94M.
  • Nova production record, an 11% increase in nickel production and 30% reduction in cash cost QoQ
  • Tropicana delivered a 9% increase in gold production and 18% reduction in AISC QoQ
  • Nova and Tropicana on track to make full year guidance after delivering 1H19
  • Second Ball Mill at Tropicana successfully commissioned resulting in higher throughput and improved gold recoveries.
  • Boston Shaker Underground Pre-Feasibility Study at Tropicana confirmed that underground mining is technically and financially viable, with a feasibility study now underway.
  • A fully franked interim dividend of 2c/share to be paid 1 March 2019
  • A link to the qtrly can be found here
  • Please contact the desk should you wish to discuss further

Pensana Metals Ltd: (PM8.ASX, 1.7cps, m.cap A$20.4m with 1,202.2m SOI, Cash $4.6m, Rare Earths explorer)

  • Following  the  successful  completion  of  the  108‐hole  drill  programme  at  the Longonjo Project in Angola an upgraded Mineral Resource estimate is expected to confirm  a  substantial  increase  in  the  size  of  the  blanket  of high‐grade  NdPr mineralisation across the surface of the 5 km2 carbonatite.  
  • The previously issued Scoping study by WOOD highlighted the benefits of the well‐established road, rail and hydro‐power infrastructure.   
  • A key advantage is Longonjo is located adjacent to the Chinese‐funded US$1.8 billion Benguela rail line linking it directly with the Atlantic deep‐water port of Lobito and onto customers in China.  
  • WOOD  (formally AMEC Foster Wheeler) has  been  asked  to  undertake  a  study  on  a  1.5  mtpa  flotation  operation producing  95,000  tonnes  of  NdPr  concentrate  for  export  to  China  based  on  the forthcoming  upgraded Mineral  Resource  estimate  and the  encouraging  early metallurgical testwork to date.  
  • The proposed high‐margin NdPr concentrate export strategy avoids  the excessive capital cost of downstream processing and potentially accelerates the project into production.   
  • Highlights  of  the  drill  programme  include  the following  high‐grade  intersections from surface. A feature is the thickness of the intersections, many of which are from surface  and  the  higher  proportion  of  the  NdPr  in  some of  the  lower  REO  grade material: 
    • 10 metres at 8.50% REO including 1.50% NdPr 
    • 10 metres at 8.03% REO including 1.98% NdPr from surface
    • 30 metres at 7.72% REO including 1.21% NdPr from surface 
    • 14 metres at 7.33% REO including 1.86% NdPr 
    • 50 metres at 5.63% REO including 1.00% NdPr from surface to end of hole  
    • 33 metres at 5.42% REO including 0.88% NdPr from surface 
    • 42 metres at 3.98% REO including 0.85% NdPr from surface 
    • 26 metres at 2.57% REO including 0.92% NdPr   
    • 15 metres at 2.88% REO including 1.03% NdPr  
    • 65 metres at 2.61% REO including 0.71% NdPr from surface to end of hole 
  • The Company’s direct interest in the project increased to 84% with the acquisition of a 14% minority interest during the quarter.

Have a question? admin@ashanticapital.com.au

ERA Communications