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31 July 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average27,19827,221-23.00-0.092.25
S&P 5003,0133,021-8.00-0.262.43
NASDAQ8,2748,293-20.00-0.243.34
FTSE 100 Index7,6477,687-40.00-0.522.98
DAX 3012,1470-270.00-2.18-2.03
CAC 40 Index5,5115,601-90.00-1.61-0.50
Nikkei 225 (Japan)21,70921,61793.000.432.04
HKSE28,14628,10640.000.14-1.39
SSE Composite Index2,9522,94111.000.39-0.89
S&P/TSX Composite Index16,46616,492-26.00-0.160.51
NZ 5010,90010,87921.000.203.80
US Volatility (Vix)14
Overseas Market Report

US sharemarkets were weaker on Tuesday. US President Donald Trump raised concerns that China appeared not to be delivering on its promise to buy more US agricultural goods. Traders awaited the Federal Reserve decision, Friday's job report and earnings data from Apple. Shares in Under Armour slumped 12.2% after earnings figures disappointed. But shares in Proctor & Gamble rose 3.8% on its earnings report. After being down 151 points, the Dow Jones ended lower by 23 points or 0.1%. The S&P500 was down by 0.3% and the Nasdaq lost 20 points or 0.2%. 

Global oil prices rose on Tuesday. The US Federal Reserve is tipped to cut rates on Wednesday, a move that could serve to lift US oil demand. And US crude oil inventories are expected to have fallen in the past week. The Brent crude price rose by US$1.18 or 2.1% to US$64.72 a barrel. And the US Nymex price rose by US$1.18 or 2.1% to US$58.05 a barrel. 

Base metal prices were lower by up to 2.5% on Tuesday with lead down the most. But nickel fell less than 0.1% and aluminium fell only 0.5%. 

The gold futures price rose by US$9.30 or 0.7% to US$1,429.70 an ounce. The spot gold price was trading near US$1,431 an ounce in late US trade. Iron ore rose by US$2.70 or 2.3% to US$121.15 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent64.7263.711.011.59-2.75
Oil - West Texas crude58.1458.050.090.16-0.56
Gold Spot $/OZ1,431.001,431.00-0.10-0.011.51
Silver Spot $/OZ16.5016.600.00-0.148.03
Iron Ore115.50114.201.301.125.39
Thermal Coal Newcastle69.7071.60-1.90-2.72-1.76
APAC Hard Coking Coal FOB160.00164.00-4.00-2.44-14.89
Aluminium ($US/t)1,7781,787-10.00-0.53-0.13
Copper Mar-18 ($US/lb)2.682.680.000.00-1.00
Lead ($US/t)1,9902,042-51.00-2.513.82
Nickel ($US/t)14,32014,325-5.00-0.0313.50
Zinc ($US/t)2,4682,486-19.00-0.74-3.78
Tin ($US/t)17,45017,605-155.00-0.88-7.34
Uranium ($US/lb)25.0026.000.00-0.783.46
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,9286,91117.000.243.42
S&P/ASX 2006,8456,82619.000.283.42
ASX 24 Futures6,755
Australian Market Report

Tuesday 30 July - close. The Australian share market has hit its highest levels ever, eclipsing a mark set just before the global financial crisis more than 11 years ago. The benchmark S&P/ASX200 index traded as high as 6,875.5 in early trade, beating the intraday high of 6,851.5 set November 1, 2007. The index of Australia's 200 companies finished Tuesday up 19.3 points, or 0.28 per cent, to 6,845.1 - also its highest close ever. The broader All Ordinaries was up 16.9 points, or 0.24 per cent, to 6,928.3.

Ashanti Headlines

Greenland Minerals Limited: (GGG.ASX, 15cps, m.cap A$178.6m with 1,190.9m SOI, Cash $10.7m (post placement), Rare Earth's Developer)

  • Greenland has secured firm commitments of $7 Million before costs via a Placement to Institutional Investors. The Placement was undertaken at an issue price of $0.12c per share.
  • The Company received strong support from existing shareholders
  • The Kvanefjeld Project is underpinned by a JORC-code compliant resource of >1 billion tonnes, and an ore reserve estimate of 108 million tonnes to sustain an initial 37-year mine life. It is projected to be one of the largest global producers of key magnet metals including neodymium, praseodymium, dysprosium and terbium. Kvanefjeld offers a new, simpler path to rare earth production than traditional refractory sources. Kvanefjeld is one of a small number of advanced rare earth projects globally.
  • The successful capital raise follows the completion of a highly successful feasibility optimisation program that resulted in a 40% reduction in both the capital and operating cost estimates. These outcomes have Kvanefjeld positioned with the lowest capital intensity, lowest unit costs of production and longest mine life of emerging ASX-listed rare earth projects. Metallurgical optimisation was guided by leading rare earth company and GML’s major shareholder Shenghe Resources Holding Co Ltd.
  • Ashanti Capital acted as Lead Manager of the Placement.

AuMake International Ltd (AU8.ASX, 16cps, m.cap A$49.9m with 312.1m SOI, Cash $9.96m (Consumer Discretionary)

  • During the June 2019 quarter, AuMake strategically increased the supply of popular products (infant formula and health supplements) to increase new visitors and total transactions. This strategy proved highly effective with significant increases in total sales, total gross profit, owned brand sales and online traffic, during what is traditionally a subdued trading quarter for daigou and Chinese tourists.
  • Highlights include:
    • Strategic change in product mix during the quarter (vs March qtr) increased:
      • Total transactions by 27%
      • Total sales by 31%
      • Total gross profit by 12%
      •  Sales of new brand products by 6% (up 48% YoY)
      • Sales of AuMake owned brand products by 11% (up 68% YoY)
      • Online sales by 89%
        • Increased net profitability from increased online sales
      • Continued decrease in operating cash outflow in line with strong progress towards profitability
      • Strong balance sheet post Broadway acquisition with $5.5m cash on hand and $6.0m inventory
    • Significant progress with JD.com during quarter with online store performing well and access to further distribution channels within the JD.com business
    • Broadway acquisition settlement on 23 July 2019
      • 80% increase YoY in tour group visitation for July
    • AuMake is making very strong progress towards its goal of becoming a highly profitable, high growth, Australian multi-channel brand building platform for the Chinese market

Invictus Energy Limited: (IVZ.ASX, 4.0 cps, m.cap A$14.62m with 365.7m SOI, Cash ~$2.2m, O&G Explorer)

  • Invictus has announced the appointment of Dr Stuart Lake as Non-Executive Chairman of the Company, effective 1 August 2019.
  • Dr Lake has over 34 years of global experience in the Petroleum industry and significant expertise, having operated assets in 20 countries worldwide, including in over ten African countries. He brings a combination of in-depth technical knowledge and a world class track record as an oil and gas finder, having led many teams in maintaining a 90% exploration success rate (from over 300 wells in 11 countries including deep-water and new plays) throughout his career.
  • Dr Lake has held a wide variety of roles in international Oil and Gas companies. Most recently as CEO of AGM Petroleum, the operator of the offshore South Deepwater Tano Block in Ghana, he brought in Petrica Energy as the new main shareholder and acquired over 2000km2 3D seismic, leading to a recently reported new oil discovery from the Exploration drill campaign.
  • Prior to his time at AGM, Dr Lake was CEO of African Petroleum Corporation Ltd, where he successfully concluded a number of farmouts and commercial deals for their West African portfolio in a challenging market and successfully listed the company on the Oslo Bors in Norway, transferring the company from the NSX. 
  • Between 2009 and 2013, Dr Lake served as Vice President of Exploration in the Hess Corporation, leading highly successful Exploration campaigns, including the seven consecutive deep-water discoveries in Ghana (recently purchased by Aker Energy) and 30 onshore discoveries in Russia.
  • His experience prior to 2009 included Dr Lake spending four years in the Apache Corporation overseeing Global New Ventures and Exploration/Exploitation activity in Argentina and Chile and over 19 years at Shell International, where he held a wide variety of positions in both Exploration and Production throughout the world including Vice President Exploration in Shell Russia.
  • Dr Lake joins the Board of Invictus, in addition to being a Non-Executive Director of Tamboran Resources Limited, which is focused on exploring for and developing unconventional oil and gas resources in the Northern Territory in Australia with Santos. He has also previously held Board positions with Energy and Geoscience Institute (EGI), University of Utah, USA and CeREES Centre of Geo_Energy, University of Durham, UK.

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