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06 March 2019 07:46 AM
Overseas Market ReportCurrent
PreviousChangeDaily %
Monthly %
Dow Jones Industrial Average25,80725,820-13.00-0.051.64
S&P 5002,7902,793-3.00-0.112.12
FTSE 100 Index7,1837,13449.000.690.14
DAX 3011,62111,59328.000.242.61
CAC 40 Index5,2985,28711.000.214.30
Nikkei 225 (Japan)21,72621,822-96.00-0.444.08
SSE Composite Index3,0543,02827.000.8816.65
S&P/TSX Composite Index16,08716,03848.000.302.38
NZ 509,4219,40021.000.223.82
US Volatility (Vix)15
Overseas Market Report

US sharemarkets were modestly lower on Tuesday. Shares in Target rose by 4.6% with Kohl's up 7.3% after both retailers delivered positive earnings guidance for 2019. But shares in Genera lElectric fell by 4.7% after the chief executive says free cash flow will be negative in 2019. After trading in a 152-point range, the Dow Jones index was lower by 13 points or 0.1%. The S&P500 index fell by 0.1%. And the Nasdaq index was down by 1 point or less than 0.1%.

Global oil prices were mixed on Tuesday. The restart of some wells in the Libya's El Sharara oilfield kept a cap on prices. The field, which has a capacity of 315,000 barrels a day in supply, had been closed since December. Brent crude rose by US19 cents or 0.3% to US$65.86 a barrel and the US Nymex price fell by US3 cents to US$56.56 a barrel.

Base metal prices were higher by up to 3.1% on Tuesday with nickel up the most with copper up 1.3% and zinc up 1.1%. But lead fell 0.5% and aluminium fell 0.1%.

The gold futures price fell by US$2.80 an ounce or 0.2% to $1,284.70 an ounce. The spot gold price was near US$1,286 an ounce in late US trade. Iron ore rose by US$1.20 or 1.4% to US$88.00 a tonne.

PreviousChangeDaily %
Monthly %
Oil Brent65.8665.670.190.296.26
Oil - West Texas crude56.2756.56-0.29-0.514.18
Gold Spot $/OZ1,288.001,
Silver Spot $/OZ15.1015.100.000.08-3.39
Iron Ore82.9081.601.301.562.23
Thermal Coal Newcastle98.1098.20-0.10-0.10-0.25
Coking Coal FOB ECP AUS0.
Aluminium ($US/t)1,8491,852-3.00-0.15-2.61
Copper Mar-18 ($US/lb)2.942.940.200.073.58
Lead ($US/t)2,0842,094-10.00-0.450.01
Nickel ($US/t)13,57413,171403.003.064.59
Zinc ($US/t)2,8012,77032.001.152.17
Tin ($US/t)21,59721,53463.000.293.29
Uranium ($US/lb)28.0028.000.000.36-2.76
Australian Market ReportCurrent
PreviousChangeDaily %
Monthly %
ASX All Ords6,2966,28114.000.233.35
S&P/ASX 2006,2146,19914.000.233.11
ASX 24 Futures6,200
Australian Market Report

Tuesday 05 March - close. Australian shares rebounded from some of their lows in the morning but have still closed lower for the first time in a week. The benchmark S&P/ASX200 index closed down 18.1 points, or 0.29 per cent, to 6,199.3 points at 1615 AEDT on Tuesday, while the broader All Ordinaries was down 21.1 points, or 0.33 per cent, at 6,281.4.

Ashanti Headlines

OZ Minerals Limited (OZL.ASX, 1032cps, m.cap A$3.34B with 323.9m SOI, Cash $505m, Copper Explorer /Developer)

  • OZ Minerals have released a Scoping Study for converting the lower portion of the Carrapateena sub level cave to a block cave from 2026 which may optimise value and further unlock the Carrapateena Life of Province Plan.
    • This would more than double the mine output from 4.25Mtpa to 10-12Mtpa;
    • Increase average LOM production to ~105-125ktpa Cu (from the sub level cave average of 65ktpa) from 2026 
    • Reduce LOM AISC to ~US$0.9-0.95c/lb  
  • The block cave expansion can occur without impeding existing sub level cave delivery, ramp-up or ongoing operation which is on track for first production in Q4 2019
  • OZ believes the pre-production capital would cost A$1.0-1.3B.
  • A PFS study will now be conducted with further geotechnical and resource drilling to be undertaken.
  • CEO Andrew Cole commented "The scoping study determined that replacing the lower half of the sub level cave with a block cave and expanding the annual throughput rate from 4.25 Mtpa to 10 – 12 Mtpa from 2026, has the potential to create significantly more value than the sub level cave alone. The block cave would be supported by expanded surface infrastructure.... The Carrapateena Block Cave Expansion work showed the conversion to a block cave to be the most value accretive next step for the Carrapateena resource and conceptually for the entire province, as it potentially enables a series of future add-on block caves, which themselves will now be the subject of a Carrapateena Life of Province Plan scoping study."
  • 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

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