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28 March 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average25,62625,658-32.00-0.13-1.12
S&P 5002,8052,818-13.00-0.460.75
NASDAQ7,6437,692-48.00-0.631.47
FTSE 100 Index7,1947,196-2.00-0.031.69
DAX 3011,41911,4190.000.00-0.84
CAC 40 Index5,3015,307-6.00-0.121.16
Nikkei 225 (Japan)21,37921,428-50.00-0.23-0.03
HKSE28,72828,567161.000.560.33
SSE Composite Index3,0232,99726.000.852.78
S&P/TSX Composite Index16,13316,155-23.00-0.140.83
NZ 509,7239,69924.000.254.27
US Volatility (Vix)15
Overseas Market Report

US sharemarkets lifted from the lows but ended weaker on Wednesday. Shares in the semiconductor sector fell 1.45% in response to the latest sales forecast from German chipmaker, Infineon. The Dow Jones index ended lower by 32 points or 0.1% after being down 232 points. The S&P500 index fell by 0.5%. And the Nasdaq index lost 48 points or 0.6%.

Global oil prices were lower on Wednesday. According to the US Energy Information Administration, crude inventories rose last week by 2.8 million barrels, compared with analysts' expectations for a decrease of 1.2 million barrels. Brent crude fell by US14 cents or0.2% to US$67.83 a barrel and the US Nymex price fell by US53cents or 0.9% to US$59.41 a barrel.

Base metal prices were generally higher on Wednesday. Aluminium rose by 1.5% and lead rose 1%. But nickel lost 0.1% and copper was flat.

The gold futures price fell by US$4.60 an ounce or 0.3% to $1,310.40 an ounce. The spot gold price was near US$1,308 an ounce in late US trade. Iron ore fell by US40 cents or 0.5% to US$84.40 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent67.8367.97-0.14-0.212.17
Oil - West Texas crude59.3159.41-0.10-0.173.65
Gold Spot $/OZ1,310.001,310.000.300.02-0.26
Silver Spot $/OZ15.3015.300.00-0.03-2.05
Iron Ore81.3081.300.000.010.61
Thermal Coal Newcastle93.5093.200.300.32-1.48
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8921,86427.001.46-0.25
Copper Mar-18 ($US/lb)2.862.86-0.30-0.09-3.03
Lead ($US/t)1,9901,97219.000.95-6.55
Nickel ($US/t)12,97612,994-18.00-0.140.04
Zinc ($US/t)2,9432,92023.000.796.03
Tin ($US/t)21,40021,34555.000.26-1.29
Uranium ($US/lb)26.0026.000.00-0.58-8.44
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,2186,2135.000.07-0.56
S&P/ASX 2006,1366,1315.000.09-0.54
ASX 24 Futures6,113
Australian Market Report

Wednesday 27 March - close. Australian shares have rebounded from a broad slump to close slightly higher for a second day in a row. After dropping below 6,100-mark for the first time in over a month in early trade, the benchmark S&P/ASX200 bounced back in the afternoon, closing up 5.4 points, or 0.09 per cent, to 6,136 points on Wednesday.

Ashanti Headlines

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

  • MOD has announced the results of its Feasibility Study for the T3 Copper Project which includes a proposed 11.5 year open pit mine, 3Mtpa conventional processing plant and all associated infrastructure.

Key outcomes of the T3 Copper Project Feasibility Study

Strong Project Economics

  • Estimated LOM revenue of US$2.3 billion and EBITDA of US$1.1 billion
  • NPV (pre-tax) of US$368 million and an IRR of 33%. Long term US3.08/lb Cu and 8% real discount rate
  • Pre-tax free cashflows of US$777 million, inclusive of development capital
  • Payback 3.7 years from production start
  • LOM All-In Sustaining costs (AISC) of US$1.56/lb Cu after deducting silver credits

Lowest Quartile Capital Intensity

  • Development capital of US$182 million includes mine development, process plant and infrastructure 

Robust Project Parameters

  • Ore Reserve containing 342.7kt Cu and 14.6Moz Ag
  • 11.5-year mine life targeting first production Q1 2021
  • Average open pit mine grade of 1.0% Cu and 13.2g/t
  • LOM average annual production of ~28kt (61mlb) Cu and 1.1Moz Ag
  • Averaging over 30kt (66mlb) Cu in the first 7 years of full production1

High Grade Concentrate Production

  • Average LOM concentrate grade 30.4% Cu and 383g/t Ag, strong interest from metal traders and smelters T3 Funding Options
  • Received written, formal Expressions of Interest from many global, top-tier debt institutions, several have commenced preliminary due diligence and completed site visits
  • MOD is advancing discussions with a number of potential strategic parties for non-debt funding

Please see link to full announcement here

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


Have a question? admin@ashanticapital.com.au

ERA Communications