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12 March 2019 07:32 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,65125,450201.000.790.89
S&P 5002,7832,74340.001.471.41
NASDAQ7,5587,408150.002.021.93
FTSE 100 Index7,1317,10426.000.37-0.04
DAX 3011,54311,45886.000.753.75
CAC 40 Index5,2665,23135.000.664.15
Nikkei 225 (Japan)21,12521,026100.000.471.25
HKSE28,50328,228275.000.971.18
SSE Composite Index3,0272,97057.001.9213.29
S&P/TSX Composite Index16,10615,996110.000.692.97
NZ 509,4149,39123.000.241.43
US Volatility (Vix)14
Overseas Market Report

US sharemarkets rose on Monday. The key exception was Boeing with shares down 5.3% following Sunday's fatal Ethiopian Airlines crash. Technology stocks led the gains. Shares in Apple rose by 3.5% after a broker upgrade. The Dow Jones index rose by 201 points or 0.8%. The S&P500 index gained 1.5%. And the Nasdaq index rose by 150 points or 2.0%.

Global oil prices rose by 1.3% on Monday. Saudi Energy Minister Khalid al-Falih said on Sunday that that an end to OPEC-led supply cuts was unlikely before June. But Reuters reported the International Energy Agency as saying that crude output in the United States will rise nearly 2.8 million bpd to 13.7 million bpd in 2024 from about 11million bpd in 2018. Brent crude rose by US84 cents or 1.3% to US$66.58 a barrel and the US Nymex price rose by US72 cents or 1.3% to US$56.79 a barrel.

Base metal prices were generally down by between 0.8-1.5% on Monday. But while tin, aluminium and nickel fell 1.5%, zinc rose 2.0% and copper rose 0.2%.

The gold futures price fell by US$8.20 an ounce or 0.6% to $1,291.10 an ounce. The spot gold price was near US$1,293 an ounce in late US trade. Iron ore fell by US$1.85 or 2.2% to US$83.00 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent66.5865.740.841.288.24
Oil - West Texas crude56.9856.790.190.337.31
Gold Spot $/OZ1,293.001,293.00-0.10-0.01-1.34
Silver Spot $/OZ15.3015.300.000.05-2.45
Iron Ore80.5082.30-1.80-2.16-9.09
Thermal Coal Newcastle94.6095.50-1.00-1.05-2.22
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8171,844-28.00-1.50-2.10
Copper Mar-18 ($US/lb)2.902.890.600.213.94
Lead ($US/t)2,0572,074-17.00-0.811.39
Nickel ($US/t)12,80813,004-196.00-1.513.23
Zinc ($US/t)2,7782,72455.002.025.12
Tin ($US/t)21,09121,420-329.00-1.540.16
Uranium ($US/lb)28.0028.000.00-0.18-2.95
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3006,26337.000.592.47
S&P/ASX 2006,2186,18038.000.612.28
ASX 24 Futures6,210
Australian Market Report

Monday 11 March - close. The Australian share market has started the week on a down note, with energy investors appeared spooked by news the world's largest wealth fund plans to sell its stakes in oil and gas companies. The benchmark S&P/ASX200 index closed down 23.6 points, or 0.38 per cent, to 6,180.2 points at 1615 AEDT on Monday, while the broader All Ordinaries closed down 23.8 points, or 0.38 per cent, at 6,263.3.

Ashanti Headlines

Pensana Metals Ltd: (PM8.ASX, 1.9cps, m.cap A$23m with 1,212.2m SOI, Cash $4.6m, Rare Earths explorer)

  • Pensana Metals have appointed international engineering company Wood Group to execute a PFS for the expedited development of the Longonjo NdPr Project
  • The study will focus on the delivery of a low capital cost open pit mining operation treating 2 million tonnes a year and exporting 120,000 tonnes of flotation concentrates a year to customers in China via the recently upgraded Benguela rail line and the Atlantic deep-water port of Lobito.
  • Capital costs of the Project are targeted to be in the order of US$100 million
  • Discussions with potential financiers have commenced and it is expected that a financing package will be finalised to coincide with the completion of the PFS (scheduled for September 2019).
  • The Company is of the view that given the work that has been completed to date and the relative simplicity of the operation, following the completion of a favourable  PFS  it  should  be  possible  to  move  immediately  to  Front  End Engineering  Design  (FEED)  and  Engineering  Procurement  Construction Management (EPCM).  
  • In summary:
    • PFS based on development of the high-grade weathered zone mineralisation, which the company believes has potential to support over 10 years of mine life at an average mined grade of over 4% rare earth oxide and 0.85% NdPr, utilising approximately 10% of the total Mineral Resource estimate. An infill drilling programme is under way to update part of the Inferred Resource estimate to the indicated category for the purpose of the study.
    • The base case of the PFS has been increased from 1.5 to 2 million tonnes a year shallow open pit mining and flotation operation producing around 120,000  tonnes  of  high‐grade  concentrate  for  export  to  customers  in China via the recently upgraded Benguela rail line and the Atlantic port at Lobito. 
    • Hong Kong based commodity marketing consultants Conrad Partners has advised that the Company can expect to receive concentrate sale prices in  excess  of  US$2,000  per  tonne  CIF  China  (based  on  the  current US$45,000 per tonne NdPr oxide price). 
    • The PFS will utilise the flotation flowsheet developed during the previous Scoping  Studies.  (ASX  Announcement  Longonjo  Magnet  Metal  Project Study Update RVY 6 December 2017). The Company is working with two established Chinese technical institutes, both highly experienced in rare earth processing, with a view to enhancing the flotation performance and high‐grade concentrate production.  
    • The Company is targeting a capital cost in the order of US$100 million. The Project  benefits  from  the lack  of a mining  pre‐strip, a low  strip  ratio, a conventional  flotation  process  plant,  an  adjacent  water  borefield,  a nearby  low  cost  hydro‐electric power  supply,  available  labour  and  in particular excellent transport infrastructure.  
    • Subsequent studies will focus on an expansion of the 2 million tonnes per annum  operation  to  treat  additional  NdPr  mineralisation  from  the remaining 90% of this large deposit
  • Please see link to the full announcement here
  • Please contact the desk or your adviser on +61 8 6169 2668 should you wish to discuss further.

MOD Resources Limited (MOD.ASX, 33cps, m.cap A$100.2m with 231.5m SOI, Cash c$29m (post placement and rights), Copper Explorer /Developer)

  • MOD has released very encouraging results from its resource infill drilling program, within the planned open pit area of the T3 Copper Project.
  • In Jan '19, MOD commenced a planned 60 hole resource infill drill program within the boundaries of the first two stages of the proposed T3 Copper Project open pit, with the objective of upgrading early production into the higher confidence, JORC compliant Measured Resource category.
  • To date, MOD has completed a total of 25 drill holes (figures 1 and 2), utilising up to three diamond drill rigs. Assays from 14 holes are pending and will be announced in due course.
  • The infill drilling program will be completed after the upcoming T3 open pit Ore Reserve and the Feasibility Study, both of which remain on track for completion be the end of March 2019.
  • Highlights of infill drilling results include:
    • MO-G-188D: 31.5m @ 2.0% Cu, 36g/t Ag from 85.6m,
      • including 10m @ 4.7% Cu, 98g/t Ag from 105m;
    • MO-G-191D: 47m @ 0.9% Cu, 7g/t Ag from 89m,
      • including 15.3m @ 1.6% Cu, 15g/t Ag from 104m;
    • MO-G-192D: 13.7m @ 1.6% Cu, 6g/t Ag from 52.8m,
      • and 33m @ 2.0% Cu, 14g/t Ag from 88m,
      • including 16m @ 3.3% Cu, 20g/t Ag from 99m;
    • MO-G-193D: 17.7m @ 1.4% Cu, 21g/t Ag from 97.8m,
      • including 6.5m @ 2.5% Cu, 36g/t Ag from 108.1m;
    • MO-G-197D: 22m @ 1.1% Cu, 10g/t Ag from 95m
  • MOD MD Julian Hanna commented “The initial results published today from the T3 infill drilling program are very strong. They continue to support and validate the accuracy of the resource model while also identifying significant new copper intercepts within the early stages of the planned open pit.... Notably, an intersection within hole MO-G-188D of 31.5m at 2.0% copper from 85.6m downhole including 10m at 4.7% copper from 105m downhole and MO-G-192D intersecting 33m at 2.0% copper including 16m at 3.3% copper from 99m, demonstrates the high-grade nature of the veins within the T3 open pit. These wide, high-grade intersections are increasing our confidence in the quality and continuity of the resource. In addition they provide encouragement of the potential to increase the current open pit resource.”
  • Please see attached full announcement here


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ERA Communications