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27 February 2019 08:04 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,05826,092-34.00-0.135.34
S&P 5002,7942,796-2.00-0.084.85
NASDAQ7,5497,554-5.00-0.075.37
FTSE 100 Index7,1517,184-33.00-0.455.02
DAX 3011,54111,50535.000.312.30
CAC 40 Index5,2395,2327.000.136.35
Nikkei 225 (Japan)21,44921,528-79.00-0.373.25
HKSE28,77228,959-187.00-0.654.36
SSE Composite Index2,9422,961-20.00-0.6713.06
S&P/TSX Composite Index16,06816,05711.000.074.57
NZ 509,3029,323-21.00-0.232.10
US Volatility (Vix)15
Overseas Market Report

US sharemarkets were slightly weaker on Tuesday as investors digested comments from the Fed chief and economic data. At the close, the Dow Jones index was down by 34 points or 0.1%. The S&P500 index lost 0.1%. And the Nasdaq index lost 5 points or 0.1%.

Global oil prices were mixed on Tuesday. Investors mulled the possible options available to the US to push down oil prices. Reuters quoted an OPEC source as saying that the oil cartel will continue its policy of restricting global oil supplies. Reuters also reported that Libya's government has agreed with the state oil company to reopen the country's largest oilfield, El Sharara. Brent crude rose by US45 cents or 0.7% to US$65.21 a barrel and the US Nymex price rose by US 2 cents to US$55.50 a barrel.

Base metal prices were mixed on Tuesday. Copper, nickel and tin fell up to 0.6% while other metals rose up to 1% with zinc doing best.

The gold futures price fell by US$1.00 an ounce or 0.1% to $1,328.50 an ounce. The spot gold price was near US$1,329 an ounce in late US trade. Iron ore fell by US$1.00 or 1.2% to US$83.55 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent65.2164.760.450.695.79
Oil - West Texas crude56.0055.500.500.904.30
Gold Spot $/OZ1,330.001,329.000.500.042.03
Silver Spot $/OZ15.9015.900.000.001.21
Iron Ore82.6084.40-1.80-2.1814.30
Thermal Coal Newcastle94.8093.701.101.17-4.00
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8851,8805.000.25-0.91
Copper Mar-18 ($US/lb)2.942.94-0.30-0.087.82
Lead ($US/t)2,0802,0746.000.28-1.23
Nickel ($US/t)12,87712,896-19.00-0.158.15
Zinc ($US/t)2,7652,73728.001.013.08
Tin ($US/t)21,77021,905-135.00-0.624.59
Uranium ($US/lb)28.0028.00-1.00-1.77-4.48
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,2206,20911.000.184.17
S&P/ASX 2006,1396,12810.000.173.95
ASX 24 Futures6,116
Australian Market Report

Tuesday 26 February - close. Australian shares have fallen across the board, led lower by the tech sector that had been the main gainer a day earlier. The benchmark S&P/ASX200 index closed down 57.9 points, or 0.94 per cent, at 6,128.4 points at 1615 AEDT on Tuesday, while the broader All Ordinaries closed down 54.6 points, or 0.87 per cent, at 6,209.

Ashanti Headlines

OZ Minerals Limited (OZL.ASX, 1080ps, m.cap A$3.49B with 323.9m SOI, Cash $505m, Copper Explorer /Developer)

  • OZL have released its annual report for the year ended 31 December 2018 which has demonstrated another year of strong financial performance.
  • Net Profit After Tax of $222 million on revenue of $1,117 million
  • Underlying NPAT in line with prior year's strong performance despite expensing an additional $46 million on progressing growth projects
  • Underlying EBITDA of $540 million at a robust 48% margin; Prominent Hill underlying EBITDA up 6% to $618 million
  • Operating cash flows up 31% to $450 million; cash balance at $505 million
  • Fully franked final dividend of 15 cps (23 cps total dividend for 2018)
  • Copper and gold production exceeded 2018 guidance with bottom quartile AISC and C1 costs below guided ranges
  • Prom Hill mine life extended to at least 2030 with 50% growth in Proved underground Ore Reserves
  • Carrapateena on schedule for first concentrate production in Q4; expansion Scoping Study nearing completion
  • West Musgrave PFS advancing with positive early results from metallurgical testing and drilling activity (positive read throughs for CZI.ASX)
  • 2019 Guidance: Still guiding for 97-109kt of copper (95-105kt Prominent Hill; 2-4kt Carrapateena) and 118-131koz of gold (115-125koz Prominent Hill; 3-6koz Carrapateena). Costs at Prominent Hill of US$1.10-1.20/lb AISC. Carrapateena remains on track for first production in 2019Q4.
  • A scoping study for Carrapateena expansion is due in 2019Q1 and is next major catalyst. Preliminary estimates suggest it might add $1-2ps to OZL valuation.
  • A link to the announcement can be found here
  • OZL remains our key pick for large cap copper exposure. Highlights from a recent Ashanti Capital event with Andrew Cole 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