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04 April 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,21826,17939.000.151.54
S&P 5002,8732,8676.000.212.89
NASDAQ7,8967,84947.000.604.20
FTSE 100 Index7,4187,39127.000.373.98
DAX 3011,95411,755200.001.703.12
CAC 40 Index5,4695,42345.000.843.45
Nikkei 225 (Japan)21,71321,505208.000.97-0.50
HKSE29,98629,625362.001.223.55
SSE Composite Index3,2163,17739.001.246.23
S&P/TSX Composite Index16,28016,26416.000.101.51
NZ 509,9219,939-19.00-0.195.39
US Volatility (Vix)14
Overseas Market Report

US sharemarkets lifted on Wednesday on rising hopes of a trade deal between the US and China. White House economic adviser Larry Kudlow said that negotiations were making "good headway", but cautioned "we're not there and we hope this week to get closer. "Chinese Vice Premier Liu He is in Washington DC for ongoing trade talks. Shares of chip maker Advanced Micro Devices (+8.5%) and Intel (+2.0%) rose after Nomura Instinet started coverage of both stocks with "buy" ratings. But Caterpillar shares fell 0.7% after Deutsche Bank downgraded the stock to "hold" from "buy" citing global growth concerns. The Dow Jones index rose by 39 points or 0.2%. The S&P500 index rose by 0.2%. And the Nasdaq index rose by 46 points or 0.6%.

Global oil prices fell on Wednesday after US crude inventories rose by the most since January. Stocks lifted by 7.24 million barrels last week according to the US EIA. Analysts had forecast a decrease of 425,000 barrels. Brent crude fell by US6 cents or 0.1%to US$69.31 a barrel and US Nymex fell by US12 cents or 0.2% to US$62.46 a barrel.

Base metal prices rose on the London Metal Exchange (LME) on Wednesday as progress in US-China trade talks bolstered the demand outlook. Zinc (+2.7%) rose the most, but LME nickel(+1.4%) warehouse stockpiles fell to the lowest since 2012. Copper (+1.1%) also lifted on solid China services sector data.

The gold futures price fell by US10 cents an ounce or -0.01% to$1,295.30 an ounce. The spot gold price was near US$1,290 an ounce in late US trade. Iron ore rose by US$3.45 or 3.8% to US$93.10 a tonne due to ongoing supply disruption concerns.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent69.3169.37-0.06-0.096.52
Oil - West Texas crude62.4362.46-0.03-0.0510.32
Gold Spot $/OZ1,291.001,290.000.900.070.32
Silver Spot $/OZ15.1015.100.000.060.36
Iron Ore86.2083.702.502.943.99
Thermal Coal Newcastle79.0081.10-2.10-2.59-18.56
Coking Coal FOB ECP AUS0.000.000.000.000.00
Aluminium ($US/t)1,8721,8629.000.48-1.33
Copper Mar-18 ($US/lb)2.942.95-0.50-0.151.13
Lead ($US/t)1,9911,96625.001.25-6.55
Nickel ($US/t)13,24413,058187.001.430.99
Zinc ($US/t)3,0002,92080.002.746.33
Tin ($US/t)21,31521,29025.000.12-1.82
Uranium ($US/lb)26.0026.000.000.98-7.84
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,3696,32841.000.651.05
S&P/ASX 2006,2856,24243.000.681.09
ASX 24 Futures6,270
Australian Market Report

Wednesday 03 April - close. The Australian share market has hit a six-month high, amid positive signs for the local economy and optimism on US-China trade talks. The benchmark S&P/ASX200 index was up 42.6 points, or 0.68 per cent, to 6,285 points at 1615 AEDT on Wednesday, while the broader All Ordinaries was up 40.9 points, or 0.65 per cent, to 6,368.7.

Ashanti Headlines

Cassini Resources Limited: (CZI.ASX, 10cps, m.cap A$41.5m with 415.5 SOI, Cash $11.3m (Post Placement), Base Metals Explorer) 

  • Cassini has announce it has completed a Placement to institutional, sophisticated and strategic investors to raise A$7.0 million.
  • The placement will result in the issue of 70 million new ordinary shares at a price of A$0.10 per share
  • The funds from the Placement will be used for working capital for the Company throughout the feasibility study stages of the WMP and to progress its exploration stage projects (Yarawindah Brookand Mt Squires) in Western Australia. The WMP studies are funded by Earnin/JV partner OZ Minerals(ASX: OZL), with OZL sole funding activities at the WMP until the delivery of a Definitive Feasibility Study and decision to mine.
  • The placement is cornerstoned by Tinci (HK) Limited, a 100% subsidiary of Guangzhou Tinci Materials Technology Co. Ltd (002709.SHE, market capitalisation of~A$2.2b) and is supported by existing major shareholders. Tinci Materials is one of the largest lithium ion battery electrolyte manufacturers in China and is currently conducting a feasibility study for the production of high-quality nickel sulphate from nickel sulphide concentrate for the battery industry
  • Discussions are to commence with Tinci as a potential WMP off-take funder, which will be evaluated alongside other funding options
  • Richard Bevan MD commented “We are delighted to welcome Tinci (HK) onto our register and look forward to exploring various opportunities between Tinci (HK) and Cassini Resources. This includes discussions with Tinci regarding potential project off-take funding which will be evaluated alongside our other funding options to realise value for shareholders. This investment from Tinci (HK) is further recognition of the size, scale and quality of Cassini’s West Musgrave Project and the development and operating reputation of our JV partner, OZ Minerals. We are very excited to work together with all parties to continue to rapidly progress the Project.” 
  • Ashanti Capital acted as Lead Manager to the Placement, with DLA Piper Australia as legal adviser.
  • A link to the full announcement can be found here

Adriatic Metals PLC (ADT.ASX, 94cps, m.cap A$141.5m with 144.5m SOI, Cash cA$14.6m, Polymetallic Explorer / Developer)

  • ADT has announced that the Federal Ministry of Energy, Mining and Industry (“FMERI”) within the Federation of Bosnia & Herzegovina has provided written acknowledgment of the acceptance of the Reserves Elaborat for the Rupice Juraševac-Brestic Project, which forms part of the broader Vareš Project, representing a major milestone toward the issue of the Exploitation Permit and then the Operating Permit for Rupice.
  • The Elaborat reported the “geological reserves” at Rupice-Juraševac-Brestic” as of 31st December 2018. The basis of the Elaborat was a non-JORC compliant Resource Estimate with supporting technical (including geotechnical, structural geology and hydro-geological) work packages.
  • Under Bosnian law, once economic quantities of any metal are defined it is an obligation for Adriatic to submit an application to add those to the existing Concession Agreement between Adriatic and Zenica-Doboj Canton, by way of a Concession Annexe. The Reserves Elaborat for Rupice defined economic quantities of Lead, Zinc Barite, Gold, Silver and Copper. It should also be noted that any additions to the Concession Agreement via Annexe will automatically apply to all of the exploration fields owned by Adriatic, including Rupice Juraševac-Brestic and Veovaca I & II.
  • The Rupice deposit is contained within the same Concession Agreement as Veovaca I & II and it will therefore benefit from the extended tenure that an Exploitation Permit granted on Veovaca will provide to May 2038, but can be extended for a further 12 years on request. The application for the Veovaca Exploitation Permit is advanced and expected to be submitted in Q3 2019. For the Rupice Exploitation Permit application, the Company will be required to submit an Environmental Impact Study, including an in-principle Site Plan and a Mining Plan; Land Access Agreements as well as an Urban Planning Permit. This work has commenced and will be finalised following the completion of exploration work on Rupice-Juraševac-Brestic
  • Adriatic’s CEO, Geraint Harris commented: “The acceptance of the Reserve Elaborate for Rupice is another major milestone in the permitting of the Vareš Project. While exploration at Rupice is focussed on continued growth of the Resource base, this step allows us to align the permitting time-lines for all fields. We are privileged to have a highly-accomplished management and technical team in Bosnia & Herzegovina, who also enjoy close collaboration with and have the continued support of government at all levels in Bosnia.”

Have a question? admin@ashanticapital.com.au

ERA Communications