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19 February 2019 07:33 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 Index7,2197,237-17.00-0.243.60
DAX 3011,29911,300-1.00-0.010.84
CAC 40 Index5,1695,15315.000.306.00
Nikkei 225 (Japan)21,28220,901381.001.822.98
HKSE28,34727,901446.001.604.64
SSE Composite Index2,7542,68272.002.686.10
S&P/TSX Composite Index15,83815,696142.000.913.49
NZ 509,2229,245-24.00-0.261.36
US Volatility (Vix)15
Overseas Market Report

US sharemarkets were closed for Presidents Day. On Friday, 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 or0.6%. Last week the Dow rose 3.1% with the S&P 500 up 2.5% and the Nasdaq up 2.4%.

Global oil prices rose slightly on Monday and remain on track for the best March quarter gains in eight years. Key market issues are US-China trade talks, OPEC commitment to cut production and the continued rise in US oil production. Brent crude rose by US25 cents or 0.4% to US$66.50 a barrel and the US Nymex price rose by US47 cents or 0.8% to US$56.06 a barrel.

Base metal prices were firmer on the London Metal Exchange on Monday, lifting by up to 2.3% with copper up the most. But lead fell 2.4% and tin lost 0.3%. Aluminium was flat and other metals rose up to 0.4%.

The spot gold price was near US$1,326 an ounce in late North American trade, up around US$5 compared with Friday. Iron ore rose by US$1.45 or 1.7% on Monday to US$88.80 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent66.5066.250.250.386.06
Oil - West Texas crude55.9355.590.340.613.96
Gold Spot $/OZ1,326.001,327.00-0.60-0.043.48
Silver Spot $/OZ15.8015.800.000.013.06
Iron Ore84.1084.80-0.70-0.7715.95
Thermal Coal Newcastle95.0094.800.200.16-4.76
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8241,825-1.00-0.03-2.01
Copper Mar-18 ($US/lb)2.842.803.801.364.32
Lead ($US/t)2,0162,066-51.00-2.441.35
Nickel ($US/t)12,37412,32054.000.445.12
Zinc ($US/t)2,6562,6515.000.172.51
Tin ($US/t)21,18021,250-70.00-0.332.15
Uranium ($US/lb)29.0029.000.00-0.17-0.69
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,1816,17110.000.174.04
S&P/ASX 2006,1036,09013.000.223.80
ASX 24 Futures6,055
Australian Market Report

Monday 18 February - close. Australian shares opened the week higher, as positive news on US-China trade talks offset some weaker earnings and profit downgrades. The S&P/ASX rose 23.7 points, or 0.4 per cent, to 6089.8 while the broader All Ordinaries closed 22.1 points, or 0.4 per cent, higher at 6170.7. 

Ashanti Headlines

Pensana Metals Ltd: (PM8.ASX, 2.0cps, m.cap A$25.2m with 1,202.2m SOI, Cash $4.6m, Rare Earths explorer)

  • Pensana has announced a substantial upgrade to the Mineral Resource estimate for its Longonjo deposit in Angola. SRK Consulting has reported an Inferred Mineral Resource estimate of:
    • 240 million tonnes at 1.60% REO including 0.35% NdPr for 3,850,000 tonnes of REO including 840,000 tonnes of NdPr. A 0.1% NdPr cut is applied.
  • This new Mineral Resource estimate represents a more than seven-fold increase in tonnes and contains well over four times the amount of NdPr compared with the maiden Mineral Resource estimate reported on 26 September 2017 at equivalent cut-off grades.
  • The deposit occurs as a blanket of soft weathered material averaging 30 metres in thickness and up to 75 metres in places. The highest grades occur from surface. The deposit remains open at depth and in a number of directions laterally. 
  • Infill drilling has already commenced on site to upgrade the highest-grade portion of the deposit to an Indicated JORC Category for the Preliminary Feasibility Study. The initial focus for further drilling will be on the resource occurring within a cut off around .65% NdPr which totals 22.9 million tonnes at 4.16% REO and .86% NdPr containing around 953,000 tonnes of REO including 197,000 tonnes of NdPr. 
  • Additional  metallurgical  testwork  is  also  planned  to  optimise  the  flotation flowsheet that has been developed to produce a high grade concentrate from Longonjo’s mineralisation. 
  • Executive Director Dave Hammond commented, “Longonjo now ranks amongst the very largest and highest grade NdPr projects worldwide and is expected to get bigger at a time when China controls 96% of rare earth magnet production. The demand for NdPr is set to take off as EV manufacturers invest over US$300 billion  in  what  has  been  described  as  the  biggest  energy  transformation  in history.  More  than  75%  of  vehicle  manufacturers  are  expected  to  use  only electric powertrains by 2025. It’s not just Longonjo’s high grade and sheer scale that gets us excited. It’s the fact that it’s located right next door to the Chinese‐built US$1.8 billion Benguela rail line which links the project with the Atlantic deep‐water port of Lobito and directly onto customers in China. The  earlier  Scoping  study  by WOOD  highlighted  the  benefits  of  the  Chinese funded infrastructure, the high NdPr grade, low mining costs, good metallurgy and the available low‐cost hydro‐electric power. We  are  now  working  with  them  to  engineer  and  design  a  low  capital  cost flotation operation that can establish Pensana as a long‐term reliable supplier of high value NdPr concentrates to customers in China.” 
  • 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