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01 July 2019 07:36 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average26,60026,52773.000.287.19
S&P 5002,9422,92517.000.586.89
NASDAQ8,0067,96838.000.487.42
FTSE 100 Index7,4267,40223.000.313.69
DAX 3012,39912,271128.001.045.73
CAC 40 Index5,5395,49445.000.836.36
Nikkei 225 (Japan)21,27621,338-62.00-0.293.28
HKSE28,54328,621-79.00-0.286.10
SSE Composite Index2,9792,997-18.00-0.602.77
S&P/TSX Composite Index16,38216,30874.000.462.15
NZ 5010,48410,501-17.00-0.163.62
US Volatility (Vix)15
Overseas Market Report

US sharemarkets were firmer in heavy trade ahead of the G20 meeting. On Friday, the Dow Jones index rose by 73 points or 0.3%, finishing with the best June gain since 1938. The S&P500 index rose by almost 17 points or 0.6% - and posted the best June gain since 1955. And the Nasdaq rose by 38.5 points or 0.5%. Over the week the Dow fell 0.4%, while the S&P 500 and Nasdaq both lost 0.3%. 

Global oil prices were mixed on Friday. The Brent crude price was unchanged at US$66.55 a barrel. But the US Nymex fell by US96 cents or 1.6% to US$58.47 a barrel. Over the week Brent rose 2.1% and Nymex rose by 1.8%. On the weekend, Russian President Vladimir Putin agreed with Saudi Crown Prince Mohammed Bin Salman to extend the current OPEC+ oil production cuts for another 6-9 months at the G20 Summit. 

Base metal prices were mixed on the London Metal Exchange (LME) on Friday. Lead, nickel and tin fell by up to 0.7% while other metals rose up to 0.5%. Over the week metals rose 0.4-5.0% with copper up the least and nickel up the most. 

The gold futures price rose by US$1.70 an ounce or 0.1% to US$1,413.70 an ounce. But the spot gold price was trading near US$1,409 an ounce in late US trade. Over the week gold rose by US$13.60 an ounce or 1% and gold rose 7.7% over June. Iron ore rose by US$1.60 or 1.4% to US$117.95 a tonne. Over the week iron ore rose by US$1.55 or 1.3%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent65.6764.740.931.441.83
Oil - West Texas crude59.3858.470.911.5610.99
Gold Spot $/OZ1,396.001,409.00-13.70-0.976.92
Silver Spot $/OZ15.2015.30-0.10-0.564.52
Iron Ore111.80109.602.201.9611.91
Thermal Coal Newcastle67.2067.200.100.15-19.27
APAC Hard Coking Coal FOB190.50191.50-1.00-0.52-6.62
Aluminium ($US/t)1,7801,7709.000.520.10
Copper Mar-18 ($US/lb)2.742.713.101.153.66
Lead ($US/t)1,9171,931-14.00-0.745.79
Nickel ($US/t)12,61712,658-41.00-0.324.28
Zinc ($US/t)2,5652,55312.000.47-5.80
Tin ($US/t)18,83318,843-10.00-0.05-3.22
Uranium ($US/lb)25.0025.000.00-0.202.07
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,6996,743-44.00-0.653.19
S&P/ASX 2006,6196,666-48.00-0.713.47
ASX 24 Futures6,577
Australian Market Report

Friday 28 June - close. The Australian share market has dropped across the board ahead of a meeting between the US and Chinese leaders at the G20 summit in Japan. The benchmark S&P/ASX200 index was down 47.5 points, or 0.71 per cent, to 6,618.8 points at 1615 AEST on Friday, while the broader All Ordinaries was down 43.8 points, or 0.65 per cent, at 6,699.2.

Ashanti Headlines

Invictus Energy Limited: (IVZ.ASX, 4.6 cps, m.cap A$18m with 365.7m SOI, Cash ~$3.1m, O&G Explorer) 

  • Invictus has announced the findings of an Independent Report completed by Getech Group plc (Getech) estimating substantial resource potential at its Cabora Bassa Project, located in the Company’s 80% owned and operated SG 4571 Permit in Zimbabwe
  • This is a material upgrade in the prospective resource estimates and Mzarabani is now officially one of the largest conventional targets in the world – the Giant has become an Elephant. 
  • Highlights:
    • Mzarabani Prospect estimated to contain 8.2 Tcf + 250 million barrels# of conventional gas / condensate (gross mean unrisked) across 5 horizons
    • Additional Msasa Prospect identified in SG 4571 estimated to contain 1.05 Tcf + 44 million barrels# of conventional gas / condensate (gross mean unrisked) across 3 horizons
    • Resource potential determined by leading petroleum consultancy Getech Group plc for SG 4571 permit from 12-month study of Cabora Bassa Project

  • To put the size of this prospect in context, the 2 largest gas discoveries in the world in the last 2 years are both smaller than the Mzarabani target. Brulpadda, discovered off the coast of South Africa in February by Total has been a huge industry talking point over the last 6 months is 500 million – 1 billion boe (barrels of oil equivalent). The Upper Angwa target alone is 945 million boe. It cost Total $150 million dollars to drill Brulpadda; it will cost us 10% of that and we are closer to market and can develop it quicker and cheaper if we are successful.

  • Here is some info on the Brulpadda discovery in South Africa in February which has been heralded as a “game-changer”
    • https://www.cnbc.com/2019/02/28/exxonmobil-makes-big-natural-gas-discovery-off-the-coast-of-cyprus.html
  • And here is some info on ExxonMobil discovery in Cyprus a few months ago. Prospects this are big enough to move the needle for the Super Majors
    • https://www.businesslive.co.za/bd/companies/energy/2019-02-07-total-makes-significant-discovery-offshore-sa/
    • https://www.businessinsider.co.za/impact-of-brulpadda-2019-2
  • Farmout Process - Appointment of ENVOI. IVZ has engaged UK based ENVOI, a leading Acquisition and Divestiture (A&D) adviser for the international upstream oil and gas industry, to run the farmout process for SG 4571. The Company has received significant industry interest ahead of the data room opening and is currently executing confidentiality agreements with several parties. Please see http://envoi.co.uk/ for further information on ENVOI

  • Environmental Impact Assessment (EIA) Commenced. The Company has engaged the Scientific and Industrial Research and Development Centre (SIRDC) to conduct an Environmental Impact Assessment (EIA) of SG 4571. The commencement of the EIA aims to ensure all necessary pre-drilling permits and activities are completed well ahead of schedule. SIRDC has experience in carrying out EIAs of developmental projects in fields such as agriculture, mining, energy generation and construction projects. Please see https://www.sirdc.ac.zw/ for further information on SIRDC.

  • Please see link to full announcement here

  • Please contact your adviser or the desk on +61 8 6319 7807 should you wish to discuss further


Have a question? admin@ashanticapital.com.au

ERA Communications