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25 February 2019 07:18 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,85125,954-104.00-0.405.93
S&P 5002,7752,785-10.00-0.355.39
NASDAQ7,4607,489-29.00-0.396.26
FTSE 100 Index7,1847,16717.000.234.10
DAX 3011,45511,42331.000.273.29
CAC 40 Index5,2095,19613.000.257.46
Nikkei 225 (Japan)21,42621,464-39.00-0.183.89
HKSE28,81628,630186.000.656.71
SSE Composite Index2,8042,75252.001.918.70
S&P/TSX Composite Index16,00116,031-30.00-0.195.04
NZ 509,3099,3018.000.092.13
US Volatility (Vix)14
Overseas Market Report

US sharemarkets rose to three-month highs on continued optimism about China-US trade talks. The Dow Jones index was up by 181 points or 0.7%. The S&P500 index was higher by 0.6%. And the Nasdaq index was up by 68 points or 0.9%. Over the week the Dow and S&P 500 rose by 0.6% and the Nasdaq rose by 0.7%. The Dow has risen for nine straight weeks, the longest winning streak since 1995.

Global oil prices rose modestly on Friday. The number of oil rigs in operation in the US fell by four in the latest week, the first fall in four weeks. Data from market intelligence provider Genscape showed that crude inventories in West Texas dropped this week to the lowest in four months. Brent crude rose by just 5cents to US$67.12 a barrel and the US Nymex price rose by US30cents or 0.5% to US$57.26 a barrel.

Base metal prices rose by up to 1.9% on Friday with copper up the most although lead and aluminium both rose by just 0.3%. Over the week all but one of the metals rose by between 2.0-5.3% with copper up the most. Lead was the exception, down 0.1%.

The gold futures price rose by US$5.00 an ounce or 0.4% to$1,332.80 an ounce. The spot gold price was near US$1,328 an ounce in late US trade. Over the week gold rose by US$10.70 or 0.8%. Iron ore was unchanged at US$86.70 a tonne. Over the week iron fell by US65 cents or 0.7%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent67.2567.070.180.279.35
Oil - West Texas crude57.1656.960.200.358.73
Gold Spot $/OZ1,324.001,324.000.600.043.03
Silver Spot $/OZ15.9015.800.100.493.55
Iron Ore85.2084.800.500.5417.14
Thermal Coal Newcastle95.2095.200.000.00-4.18
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8851,84936.001.962.04
Copper Mar-18 ($US/lb)2.952.904.901.6710.75
Lead ($US/t)2,0582,02731.001.522.53
Nickel ($US/t)12,77612,828-52.00-0.418.86
Zinc ($US/t)2,7042,724-21.00-0.774.12
Tin ($US/t)21,50821,299209.000.983.48
Uranium ($US/lb)29.0029.000.000.00-0.52
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,2426,21527.000.445.36
S&P/ASX 2006,1676,13928.000.465.27
ASX 24 Futures6,136
Australian Market Report

Friday 22 February - close. Australian shares have finished higher despite a drag from the energy sector weakened by coal exports to China. The benchmark S&P/ASX200 index finished up 28.1 points, or 0.46 per cent, at 6,167.3 points at 1615 AEDT on Friday, while the broader All Ordinaries was up 27.3 points, or 0.44 per cent, at 6,241.9.

Ashanti Headlines

Base Resources (BSE.ASX, 27.5cps, m.cap A$326m with 1.16b SOI, Cash US$49.1m, Mineral Sands Producer)

  • BSE has reported a strong set of 1H FY19 results driven by improved prices for mineral sands products and consistent production.

  • Operational highlights for H1 FY19
    • 66% increase in mined ore at Kwale Operations offsets lower ore grade;
    • Steady production – 49,630 tonnes of rutile, 226,730 tonnes of ilmenite and 17,935 tonnes of zircon;
    • Continued strengthening of rutile and zircon prices;
    • 136km2 Vanga prospecting licence issued, extending south west from the Company’s existing Kwale Operation;
    • Total Recordable Injury Frequency Rate of zero – no lost time due to injury since 2014; and
    • US$2.0m invested in community and environmental programs including scholarships and livelihood enhancement.

  • Financial Highlights for H1 FY19
    • Revenue increased 13% to US$102.2m;
    • EBITDA increased 7% to US$57.5m;
    • NPAT increased 4% to US$17.4m;
    • Net debt free at 31 December 2018 – a reduction of US$34.2m during the period; and
    • Revenue to cost of sales ratio of 2.7:1
  • MD of BSE Tim Carstens commented “Kwale Operations have continued to perform strongly as we head towards completion of mining on the Central Dune. The mine optimisation strategy we implemented in the first half of 2018 to address the decline in ore grades delivered as expected. We are now focused on transitioning mining operations to the South Dune deposit in June this year and continuing to pursue additional mine life through extensional exploration at Kwale, including the newly issued Vanga licence. The Toliara Project is progressing well with a number of activities advanced in the period, including plant test work and flowsheet design, infrastructure design, distribution of marketing samples and land acquisition processes. We look forward to releasing the outcomes of our PFS shortly. December saw Base Resources reach a significant milestone in becoming net cash positive, putting the Company in a strong financial position as we progress towards development of the Toliara Project.”
  • A link to the full announcement can be found here
  • Please contact the desk or your adviser on +61 8 6169 2668

Investor and shareholder call: Base Resources’ Managing Director, Tim Carstens, and CFO, Kevin Balloch, will host two investor and shareholder conference calls to discuss Base Resources’ H1 FY19 results.

Asia Pacific conference call 

Date: Monday 25 February 2019

Time: 08:00am AWST / 11.00am AEDT Conference ID: 152722

Telephone dial in details:

Australia Toll Free: 1 800 558 698 

Hong Kong: 800 966 806 

Malaysia: 1800 816 294

New Zealand Toll Free: 0800 453 055 

Japan: 0053 116 1281 

Singapore: 800 101 2785

China Wide: 4001 200 659


Have a question? admin@ashanticapital.com.au

ERA Communications