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15 November 2019 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average27,78227,784-2.00-0.013.71
S&P 5003,0973,0943.000.084.40
NASDAQ8,4798,482-3.00-0.045.35
FTSE 100 Index7,2937,351-58.00-0.801.10
DAX 3013,1800-50.00-0.385.56
CAC 40 Index5,9015,907-6.00-0.104.57
Nikkei 225 (Japan)23,14223,320-178.00-0.764.21
HKSE26,32426,571-248.00-0.93-0.68
SSE Composite Index2,9102,9055.000.16-2.71
S&P/TSX Composite Index16,97216,95814.000.083.39
NZ 5010,93410,89935.000.32-1.01
US Volatility (Vix)13
Overseas Market Report

US sharemarkets were broadly flat on Thursday as trade uncertainty and weak Chinese economic data heightened investor caution. But China lifted a 4-year ban on poultry meat imports from the US, pushing up shares of Tyson Foods (+1.7%). Shares of Cisco Systems dropped by 7.3% on disappointing guidance, while Walmart shares fell by 0.3%, despite hitting an all-time high on strong earnings. At the close of trade, the Dow Jones index was down by just 1 point or 0.01%. The S&P500 index was up by 0.1% - a fresh record close. And the Nasdaq index was lower by 3 points or 0.04%. 

Global oil prices fell on Thursday. US crude inventories grew by 2.2 million barrels last week, above analysts' expectations for a 1.649 million-barrel rise, according to the US EIA. Brent crude fell by US9 cents or 0.1% to US$62.28 a barrel. And the US Nymex price fell by US35 cents or 0.6% to US$56.77 a barrel. 

Base metal prices fell on the London Metal Exchange on Thursday as weak Chinese investment data weighed on sentiment. Aluminium (-1.6%) and nickel (-1.5%) fell the most. 

The gold futures price was up by US$10.10 or 0.7% to US$1,473.40 an ounce. Spot gold was trading near US$1,470 an ounce in late US trade. Iron ore rose by US$2.25 or 2.8% to US$83.40 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent62.4062.370.030.055.14
Oil - West Texas crude56.7757.12-0.35-0.615.93
Gold Spot $/OZ1,471.001,471.00-0.40-0.02-0.68
Silver Spot $/OZ17.0017.000.00-0.02-2.22
Iron Ore79.7080.00-0.30-0.31-14.58
Thermal Coal Newcastle66.7066.700.000.000.27
APAC Hard Coking Coal FOB143.00143.000.000.00-7.74
Aluminium ($US/t)1,7381,766-28.00-1.591.65
Copper Mar-18 ($US/lb)2.622.64-1.80-0.68-0.47
Lead ($US/t)2,0092,034-25.00-1.23-5.47
Nickel ($US/t)15,15415,384-230.00-1.50-9.18
Zinc ($US/t)2,4342,457-23.00-0.94-0.41
Tin ($US/t)16,19015,991199.001.24-1.84
Uranium ($US/lb)25.0025.000.000.600.20
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8416,80635.000.521.14
S&P/ASX 2006,7356,69837.000.551.25
ASX 24 Futures6,760
Australian Market Report

Thursday 14 November 2019 - close.  Australian shares rebounded from a loss in the previous session on Thursday after a surprise increase in the unemployment rate supported gains on the local sharemarket. The S&P/ASX 200 Index advanced 36.7 points, or 0.6 per cent, to 6735.1.

Ashanti Headlines

Pensana Metals Ltd: (PM8.ASX, 18.5cps, m.cap A$27.3m with 147.4m SOI, Cash $3m, Rare Earths explorer)

  • PM8 has released the results of the Preliminary Feasibility Study for the Longonjo NdPr Project in Angola.
  • The study was coordinating by Wood Group and is based on open pit mining and two-phase development of a 2Mt p.a. processing plant and associated infrastructure, producing on average 56,000 tpa of NdPr concentrate for export.
  • The study estimates capital costs of ~US$131M inclusive of mine development, process plant and infrastructure and 15% cost growth. Estimated at 14 months construction and commissioning.
  • Project economics have been estimated using price forecasts developed by Roskill:
  • Access to major rail and power infrastructure significantly reduces the capital cost and allows for the development of the mine as a simple flotation operation producing a concentrate for export avoiding the need to invest in a complex and expensive chemical processing plant.
  • The open pit mine, which has an average depth of 25 metres and a negligible strip ratio may be extended if infill drilling of some of the large amount of Inferred Mineral Resources is successful. There is also the potential to extend the near surface of blanket weathered mineralisation in several areas where it remains open along strike through additional drilling.
  • The mine will be a significant NdPr producer outside China and the first major rare earth mine to be developed since 2012.
  • For the first three years of operation, the project intends to process 1.5 mtpa higher grade resources, producing 60,000 tonnes of concentrate in each year and containing 4,600 tpa NdPr and 20,700 tpa TREO. From the fourth year of 4 operation the front end of the plant will be expanded to process 2 mtpa and maintain concentrate and NdPr production.
  • Chairman Paul Atherley commented “We are delighted with the overall results of the Pre‐Feasibility Study and in particular the project’s strong economics which have set the Longonjo on the pathway to becoming a long‐term sustainable producer of rare earth elements. Once in production Longonjo will become a major supplier of neodymium in concentrate outside China at a time when demand for neodymium oxide is set to take off due to increasing demand for permanent magnets in EVs and offshore wind turbines. The work by the team in ensuring that the upfront capital costs are low whilst designing in the highest standards of ESG and Scope 3 Emissions compliance will make the project very attractive to offtake parties and financiers. We are also grateful for the support from the Angola Government and the British Embassy in Luanda for their ongoing support for our investment.”
  • A link to the PFS can be found here.
  • Please contact the desk or your adviser should you wish to discuss further.

Have a question? admin@ashanticapital.com.au

ERA Communications