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21 March 2019 07:59 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,74625,887-142.00-0.55-0.41
S&P 5002,8242,833-8.00-0.291.78
NASDAQ7,7297,7245.000.073.61
FTSE 100 Index7,2917,324-33.00-0.451.72
DAX 3011,60411,788-185.00-1.571.58
CAC 40 Index5,3835,426-43.00-0.803.59
Nikkei 225 (Japan)21,60921,56742.000.200.67
HKSE29,32129,466-145.00-0.492.41
SSE Composite Index3,0913,0910.00-0.0112.31
S&P/TSX Composite Index16,16816,188-21.00-0.131.04
NZ 509,4339,436-2.00-0.021.43
US Volatility (Vix)14
Overseas Market Report

US sharemarkets were mixed on Wednesday. The Dow Jones fell by 216 points earlier in the session after a weak profit outlook from logistics bellwether FedEx (-3.5%) and trade concerns. US President Trump said tariffs could be left on China for a long period of time, but then said a trade deal with Beijing was coming along, with US trade negotiators going to China soon. However, shares turned positive after the FOMC forecast no rate hikes this year, before again losing momentum. The Dow Jones index fell by 141 points or 0.6%. The S&P500 index fell by 0.3%. But the Nasdaq index rose by 5 points or 0.1%.

Global oil prices rose on Wednesday after the biggest withdrawal of crude in US storage tanks since July signalled a tightening ofsupplies. According to the US EIA, stockpiles fell by 9.6 millionbarrels last week, compared with analysts' expectations for anincrease of 309,000 barrels. Brent crude rose by US89 cents or1.3% to US$68.50 a barrel and the US Nymex price rose by US80cents or 1.4% to US$59.83 a barrel.

Base metal prices mostly lifted on the London Metal Exchange on Wednesday. Zinc (+1.6%) and nickel (+0.6%) gained the most as new Chinese property tax concerns eased.

The gold futures price fell by US$4.80 an ounce or 0.4% to $1,301.70 an ounce on Wednesday. The spot gold price was near US$1,301 an ounce in late US trade. Iron ore fell by US$2.90 or 3.3% to US$84.05 a tonne after a Brazilian court said that Vale could restart operations at its Brucutu mine.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent68.5067.610.891.322.12
Oil - West Texas crude60.0460.23-0.19-0.325.41
Gold Spot $/OZ1,316.001,313.003.000.23-0.61
Silver Spot $/OZ15.5015.500.000.26-1.85
Iron Ore84.0084.100.00-0.04-1.38
Thermal Coal Newcastle93.6093.500.100.11-1.73
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,9131,922-9.00-0.483.45
Copper Mar-18 ($US/lb)2.922.92-0.40-0.14-0.15
Lead ($US/t)2,0242,01211.000.56-0.16
Nickel ($US/t)13,12113,04972.000.552.28
Zinc ($US/t)2,8962,85047.001.636.31
Tin ($US/t)21,42021,33090.000.420.57
Uranium ($US/lb)26.0027.000.00-1.12-8.01
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,2436,252-9.00-0.140.46
S&P/ASX 2006,1586,165-7.00-0.120.31
ASX 24 Futures6,155
Australian Market Report

Wednesday 20 March - close. Australian shares have closed in negative territory for a second day after a drop in the price of iron ore put pressure on mining shares. The benchmark S&P/ASX200 index was down 19.5 points, or 0.32 per cent, to 6,165.3 points at 1615 AEDT on Wednesday, while the broader All Ordinaries was down 24.8 points, or 0.4 per cent, at 6,251.8.

Ashanti Headlines

Base Resources (BSE.ASX, 30.25cps, m.cap A$352.9m with 1.16b SOI, Cash US$49.1m, Mineral Sands Producer)

  • Base Resources has released the outcome of the Pre-Feasibility Study on its Toliara Project in Madagascar
  • The PFS confirms the Company's view that this is a world class mineral sands project with estimated post-tax/pre-debt (real) NPV10 of US671 million and a sector leading average revenue to cost ratio of 3.06 over the 33-year initial mine life
  • Highlights
    • Post-tax / pre-debt (real) NPV @ 10% discount rate of US$671m, measured at FID
    • Revenue to cost of sales ratio of 3.06
    • Stage 1 capex cost of US$439m – to establish a 13Mtpa mining processing operation
    • Stage 2 capex cost of US$67m - increases operation to 19Mtpa
    • Mineral Resources forming basis of PFS comprise of 588Mt @ 6.6% Heavy Mineral, from existing Measured & Indicated resources, for an initial LOM of 33 years
    • Mineral Separation Plant recoveries of 93.9% ilmenite, 79.0% zircon and 73.7% rutile
    • Annual averages (excluding first and last partial operating years):
      • Production of 806kt ilmenite (sulphate, slag and chloride), 54kt zircon and 8kt rutile
      • Revenue US$254m – 62% ilmenite, 34% zircon and 4% rutile
      • Operating costs of US$77m or US$82m incl. 2% royalties
      • Non-operating costs of US$7m (community, external affairs, marketing etc.)
      • EBITDA US$165m, NPAT US$110mo Free cash flow US$133m
    • An animated video of the Toliara Project can be viewed at www.baseresources.com.au
  • MD Tim Carstens commented "We are delighted to be able to share these PFS findings. They confirm our long-held view, which informed the project’s acquisition by Base Resources in early 2018, that the Toliara Project is one of the best mineral sands development opportunities in the world... The release of the PFS findings today is a significant milestone for Base Resources as it provides a clear basis for understanding our value proposition as we progress towards becoming a multi-operation mining company.”
  • A link to the full announcement can be found here
  • Please call the desk on +61 8 6169 2668 should you wish to discuss further

Have a question? admin@ashanticapital.com.au

ERA Communications