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18 February 2019 07:13 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,88325,439444.001.744.76
S&P 5002,7762,74630.001.093.93
NASDAQ7,4727,42745.000.614.40
FTSE 100 Index7,2377,19740.000.553.85
DAX 3011,30011,090210.001.890.84
CAC 40 Index5,1535,06391.001.795.69
Nikkei 225 (Japan)20,90121,140-239.00-1.131.14
HKSE27,90128,432-531.00-1.872.99
SSE Composite Index2,6822,720-37.00-1.373.33
S&P/TSX Composite Index15,83815,696142.000.913.49
NZ 509,2799,24634.000.372.00
US Volatility (Vix)15
Overseas Market Report

US sharemarkets posted solid gains in reaction to the news of progress on US-China trade talks. Trade sensitive stocks rose the most with Boeing up 2%. At the close the Dow Jones index was up by 444 points or 1.7%. The S&P500 index was up by 1.1%. And the Nasdaq index was higher by 45.5 points or 0.6%. Over the week the Dow rose 3.1% with the S&P 500 up 2.5% and the Nasdaq up 2.4%.

Global oil prices rose by up to 2.6% on Friday. Investors were encouraged by progress at US-China trade talks. And there was concern about near-term oil supplies on news of an outage at Saudi Arabia's Safaniya offshore oilfield. Brent crude rose by US$1.68 or 2.6% to US$66.25 a barrel and the US Nymex price rose by US$1.18 or 2.2% to US$55.59 a barrel. Over the week Brent rose by 6.8% and Nymex rose by 5.4%.

Base metal prices were firmer on the London Metal Exchange on Friday, lifting by up to 2.4% with zinc up the most. Over the week metals were mixed. Zinc, nickel and aluminium fell 1.4-1.9%. Other metals rose up to 0.7%.

The gold futures price rose by US$8.20 an ounce or 0.6% to $1,322.10 an ounce. The spot gold price was near US$1,321 anounce in late US trade. Over the week gold rose by US$3.60 or0.3%. Iron ore fell by US45 cents or 0.5% to US$87.35 a tonne. Over the week iron ore fell by US$6.85 or 7.3%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent66.5966.250.340.516.20
Oil - West Texas crude55.9955.590.400.724.07
Gold Spot $/OZ1,321.001,322.00-0.60-0.053.06
Silver Spot $/OZ15.8015.800.00-0.032.87
Iron Ore84.1084.80-0.70-0.7715.95
Thermal Coal Newcastle94.9095.00-0.10-0.11-3.90
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8251,8214.000.230.21
Copper Mar-18 ($US/lb)2.812.801.400.503.44
Lead ($US/t)2,0662,03432.001.595.85
Nickel ($US/t)12,32012,120200.001.655.65
Zinc ($US/t)2,6512,58863.002.417.90
Tin ($US/t)21,25020,950300.001.432.36
Uranium ($US/lb)29.0029.000.00-0.17-0.69
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,1866,14937.000.614.12
S&P/ASX 2006,1046,06638.000.623.81
ASX 24 Futures6,063
Australian Market Report

Friday 15 February - close. Australian shares closed the week lower after a major week of earnings saw a number of weaker outlook statements weigh on investor sentiment. The S&P/ASX 200 Index closed 5.4 points, or 0.1 per cent, lower for the week at 6066.1 while the broader All Ordinaries actually rose 12.4 points, or 0.2 per cent, to 6148.6.

Ashanti Headlines

Cassini Resources Limited: (CZI.ASX, 8.7cps, m.cap A$30.1m with 345.5 SOI, Cash $4.3m, Base Metals Explorer) 

  • CZI has announced encouraging results from recent drilling at the Succoth Deposit within the West Musgrave Project (OZL 51%, CZI 49% - OZL earning up to 70%) in WA.
  • Succoth Deposit is a large, Inferred copper resource of 156mt @ 0.60% Cu, located only 13km northeast of Nebo that could have significant benefits to the Project by providing additional mineralisation to a future mining operation at Nebo-Babel.
  • Three diamond drill holes for 1,883.3m were completed in late 2018, infilling a strategic section critical to resolving the folded stratigraphy model hypothesis (Figure 1). Significant results from the program include
    • 76.3m @ 0.71% Cu & 0.17g/t PGE from 46.7m (CZD0096), 
    • 92.55m @ 0.75% Cu & 0.19g/t PGE from 271.45m (CZD0097) and 
    • 141.3m @ 0.50% Cu & 0.11 g/t PGE from 431.5m (CZD0098)
  • The results have confirmed thick zones of copper mineralisation that support a favourable, folded mineralisation geometry, with significant implications for future resource updates and mining evaluation. Drilling has also provided further evidence of a proximal source of nickel sulphide mineralisation.
  • The Succoth Deposit presents future optionality on copper with likely low capital intensity development costs that may support a multi-decade project in the region.
  • A second infill section requiring approximately 2,000m of drilling will be undertaken to confirm the folded geological interpretation extends along strike. Site works have already been completed and drilling will commence early in the 2019 field program.
  • Cassini Managing Director Richard Bevan commented, “The importance of these results goes well beyond the assays themselves. They support a favourable geological interpretation that has significant potential benefit for the scale of the resource at Succoth, its amenability to open pit mining and our goal of building a multi-decade mining operation in the West Musgrave. The perseverance of our geological team is successfully unlocking the potential of Succoth and we look forward to further drilling success in 2019”.
  • 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

OZ Minerals Limited (OZL.ASX, 1027cps, m.cap A$3.33B with 323.9m SOI, Cash $505m, Copper Explorer /Developer)

  • Ashanti was pleased to host a presentation last Thursday from Andrew Cole, the CEO of OZ Minerals. 
  • Andrew provided a impressive overview of the business and the culture in which the company aims to operate. 
  • OZL is focussed on tier 1 assets with multi-decade mine life and Andrew highlighted the structured approach they take in evaluating and developing base metal projects. 
  • The West Musgrave Project was prominent in the presentation providing a positive read-through for Joint-Venture partner Cassini Resources (ASX.CZI).
  • OZL remains our preferred pick for large cap copper exposure. Please contact the desk if you would like to discuss further. 

Have a question? admin@ashanticapital.com.au

ERA Communications