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26 February 2019 07:40 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,09226,03260.000.235.48
S&P 5002,7962,7933.000.124.93
NASDAQ7,5547,52827.000.365.44
FTSE 100 Index7,1847,1795.000.075.50
DAX 3011,50511,45848.000.421.98
CAC 40 Index5,2325,21616.000.316.21
Nikkei 225 (Japan)21,52821,426103.000.483.63
HKSE28,95928,816143.000.505.04
SSE Composite Index2,9612,804157.005.6013.82
S&P/TSX Composite Index16,05716,01344.000.274.50
NZ 509,3629,34517.000.192.76
US Volatility (Vix)15
Overseas Market Report

US sharemarkets rose on Monday on prospects of a trade deal with China. But defensive sectors eased. After being up 210 points,the Dow Jones index finished higher by 61 points or 0.2%. The S&P500 index was higher by 0.1%. And the Nasdaq index was up by 27 points or 0.4%.

Global oil prices fell 3.0-3.5% on Monday after US President Trump criticised OPEC for keeping oil prices too high: "Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!". Oil prices had risen earlier on signs of progress in China-US trade talks. But investors are still worried about potential supply disruptions in Venezuela, Libya and Nigeria. Brent crude fell by US$2.36 or 3.5% to US$64.76 a barrel and the US Nymex price fell by US$1.78 or 3.1% to US$55.48 a barrel.

Base metal prices were mixed on Monday. Nickel, zinc and aluminium fell up to 0.5% while other metals rose up to 1% with tin doing best.

The gold futures price fell by US$3.30 an ounce or 0.2% to$1,329.50 an ounce. The spot gold price was near US$1,326 an ounce in late US trade. Iron ore fell by US$2.15 or 2.5% toUS$84.55 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent64.7667.12-2.36-3.525.06
Oil - West Texas crude55.4455.48-0.04-0.073.26
Gold Spot $/OZ1,328.001,328.000.100.011.88
Silver Spot $/OZ15.9015.900.000.021.00
Iron Ore82.6084.40-1.80-2.1814.30
Thermal Coal Newcastle93.7093.600.100.11-5.11
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8801,890-10.00-0.50-1.16
Copper Mar-18 ($US/lb)2.942.94-0.10-0.037.88
Lead ($US/t)2,0742,06410.000.48-1.51
Nickel ($US/t)12,89612,916-20.00-0.158.31
Zinc ($US/t)2,7372,742-5.00-0.192.04
Tin ($US/t)21,90521,680225.001.045.24
Uranium ($US/lb)28.0029.000.00-1.57-2.76
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,2266,264-38.00-0.604.27
S&P/ASX 2006,1476,186-40.00-0.644.08
ASX 24 Futures6,117
Australian Market Report

Monday 25 February - close. Australian shares closed higher on Monday amid signs a trade deal between the US and China was close. The S&P/ASX 200 Index closed 19 points, or 0.3 per cent, higher at 6186.3 after recovering from a dip into the red earlier in the session.

Ashanti Headlines

Increasing interest in the Kalahari Copper Belt - positive read throughs for MOD.ASX

  • A wholly owned subsidiary of Royal Gold AG (NASDAQ:RGLD) has entered into a life of mine purchase and sale agreement for silver produced from the Khoemacau Copper Project in Botswana and Khoemacau Copper Mining Pty Limited, a wholly-owned subsidiary of Cupric Canyon Capital LP
  • Royal Gold will make an advance payment of US$ 212 million for 80% of the silver produced from Khoemacau until certain delivery thresholds are met (the “Silver Stream”), and at Cupric’s option, up to an additional US$ 53 million for up to the remaining 20% of the silver produced (the “Option Stream”). Royal Gold will pay 20% of the spot price of silver for each ounce delivered. Royal Gold will also make available up to US$25 million of subordinated debt towards the end of Project development to fund potential cost overruns, subject to various conditions (the “Overrun Facility”). 

  • Khoemacau Copper Project - Khoemacau is a copper-silver project located in a sparsely populated region of northwestern Botswana in the Kalahari Desert. It is located in the Kalahari copper belt, although the main mineralized zone demonstrates a high-grade copper tenor that is a typical of what has been discovered in the belt thus far. Khoemacau is made up of over 4,040 square kilometers of mineral concessions from the acquisition of Hana Mining Ltd. (“Hana”) in 2013 as well as additional mineral concessions and a plant and associated infrastructure (the “Bose to Mill”) acquired by Cupric out of the receivership of Discovery Metals Inc.(“Discovery”) in 2015. Cupric consolidated the land position and infrastructure and has focused on exploration and development of the Zone 5 orebody. While Zone 5 was discovered by Hana in 2012, it was not thoroughly explored and evaluated until acquisition of the concessions by Cupric in 2013. Cupric reports that the mineralization has proven to be very consistent over the known linear strike of nearly four kilometers and 60 degree dip, and averages 9 to 10meters in width. Zone 5 currently contains a proven and probable reserve, prepared under JORC1standards, of 30.4 million tonnes at 2.0% copper and 19.5 g/t silver. The total resource1 at Zone 5 is 91.7 million tonnes at 2.1% copper and 21.9g/t silver. Cupric is currently completing a drilling program with the goal of converting 90% of the first ten years of planned production into measured and indicated resources1 and expects to calculate an updated reserve and resource thereafter. Cupric plans to develop the orebody at Zone 5 as three separate underground mines each planned to produce 1.2 million tonnes per year over the first five years. Each of the mines is expected to have its own independent ramp access and operate over a strike length of ~1,000 meters, extracting ore using conventional sub-level open stoping. 

  • This transaction highlights the regional scale of the Kalahari Copper Belt as Cupric looks to commence production at Khoemacau Copper Project (+60kt of Cu/annum over a 21yr mine life, MOD's T3 is located ~120km's along strike). The increasing interest in the area coincides with the rapid progress being made down the road by MOD Resources (MOD.ASX).  MOD are due to release a Reserve update and a Feasibility Study by the end of March. 

  • A link to the full announcement on RGLD's website can be found here

  • Please contact the desk on +61 8 6169 2668 should you wish to discuss further.


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ERA Communications