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28 August 2019 06:51 AM
Overseas Market ReportCurrent
PreviousChangeDaily %
Monthly %
Dow Jones Industrial Average25,77825,899-121.00-0.47-5.20
S&P 5002,8692,878-9.00-0.32-5.18
FTSE 100 Index7,0907,095-5.00-0.08-6.09
DAX 3011,730072.000.62-5.55
CAC 40 Index5,3875,35136.000.67-3.97
Nikkei 225 (Japan)20,45620,261195.000.96-5.55
SSE Composite Index2,9022,86439.001.35-1.44
S&P/TSX Composite Index16,18416,09985.000.53-2.10
NZ 5010,53410,51321.000.20-2.53
US Volatility (Vix)20
Overseas Market Report

US sharemarkets traded on both sides of the unchanged line on Tuesday. Investors assessed latest news on the US-China trade stoush and mixed economic data. The yield curve remained inverted (short-term yields higher than longer-term yields) causing investors to fret about a possible recession ahead. The Dow Jones finished lower by 121 points or 0.5% after trading in a 333 point range. The S&P500 index fell by 0.3% and the Nasdaq lost 27 points or 0.3%. 

Global oil prices rose by between 1.4-2.4% on Tuesday, ahead of US weekly crude inventory data. Traders expect a 2 million barrel drawdown in stocks. Traders were focused on the US-China trade war with Reuters reporting that China's foreign ministry said that it had not heard of any recent telephone call between the United States and China on trade. Brent crude price rose by US81 cents or 1.4% to US$59.51 a barrel. And the US Nymex price rose by US$1.29 or 2.4% to US$54.93 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Tuesday. Tin fell 0.8% and aluminium fell 0.7% but other metals rose by up to 1.5% with lead up the most. 

The gold futures price rose by US$14.60 or 0.9% to US$1,551.80 an ounce. The spot gold price was trading near US$1,543 an ounce in late US trade. Iron ore fell by US$2.90 or 3.4% to US$83.10 a tonne.

PreviousChangeDaily %
Monthly %
Oil Brent59.5158.700.811.38-6.22
Oil - West Texas crude55.5954.930.661.20-1.09
Gold Spot $/OZ1,543.001,543.
Silver Spot $/OZ18.2018.200.00-0.0110.97
Iron Ore89.0089.000.000.00-24.02
Thermal Coal Newcastle65.4065.80-0.30-0.53-11.92
APAC Hard Coking Coal FOB148.00150.00-2.00-1.33-13.45
Aluminium ($US/t)1,7331,744-12.00-0.66-2.50
Copper Mar-18 ($US/lb)2.552.550.400.18-4.65
Lead ($US/t)2,1022,07032.001.522.15
Nickel ($US/t)15,77915,72356.000.3612.20
Zinc ($US/t)2,2782,25325.001.10-6.95
Tin ($US/t)15,77315,906-133.00-0.84-10.66
Uranium ($US/lb)25.0025.000.00-0.20-1.75
Australian Market ReportCurrent
PreviousChangeDaily %
Monthly %
ASX All Ords6,5666,53135.000.53-4.56
S&P/ASX 2006,4716,44031.000.48-4.74
ASX 24 Futures6,420
Australian Market Report

Tuesday 27 August- close. The tech sector has led the Australian share market higher after Donald Trump said trade talks with China would resume and he was hopeful for a deal. The benchmark S&P/ASX200 index finished Tuesday up 31.1 points, or 0.48 per cent, to 6,471.2 points, while the broader All Ordinaries was up 34.6 points, or 0.53 per cent, to 6,565.6 points

Ashanti Headlines

Cassini Resources Ltd (CZI.ASX, 8.4cps, m.cap A$34.9m with 415.5m SOI, Cash cA$8.1m, Base Metals Explorer)

  • OZL have provided a progress update on the West Musgrave Project (JV between OZL (70%) & CZI (30%)) Pre-Feasibility Study (PFS).
  • The original PFS timeline has been extended to allow for a greater level of in-fill drilling and other value add opportunities than was contemplated in the original Pre-feasibility Study timeline, which will provide a clearer view of the project economics and key value drivers once the Pre-feasibility Study is completed early next year.
  • OZ confirms that all material assumptions in the Scoping Study continue to apply and are not materially different to the Pre-feasibility study assessing a 10 Mtpa open pit operation producing nickel and copper sulphide concentrates from the Nebo-Babel orebodies over long mine life of +15 years (up from the 8 years used in the Scoping Study).
  • Value adds under consideration for the PFS include reducing the site footprint via a Remote Operations Centre, the use of hybrid power solutions, potential to use innovative technology to enhance the process flowsheet which pilot testing has shown could result in a significant reduction in power usage (also improve recoveries).
  • OZL have spent an estimated $42-44m to date and have received board approval for an additional $10m to complete the PFS.
  • The completed PFS is targeted for completion in early 2020, at which time an updated Mineral Resource and maiden Ore Reserve is also expected to be declared.
  • OZ Minerals’ CEO, Andrew Cole said “The Pre-feasibility Study is advancing on a base case assessment aligned with the Further Scoping Study conclusion of a 10 Mtpa copper-nickel open pit mine. The Further Scoping Study announcement commentary described an initial eight years of mine life with clear view on increasing this to beyond 15 years; an expectation of the PFS. We are using an innovative and inclusive process to develop West Musgrave as a modern mine that creates maximum value for key stakeholders. This process involves collaborating with the traditional owners, government agencies, and local and international industry and subject matter experts; which has required a significant investment in time and effort from the various parties."
  • A link to the full announcement can be found here
  • Please contact your adviser or the desk on +61 8 6319 7806 should you wish to discuss further.

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