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20 November 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average27,93428,036-102.00-0.364.35
S&P 5003,1203,122-2.00-0.064.49
NASDAQ8,5718,55021.000.245.95
FTSE 100 Index7,3247,30816.000.222.42
DAX 3013,221014.000.114.65
CAC 40 Index5,9095,930-21.00-0.354.84
Nikkei 225 (Japan)23,29323,417-124.00-0.533.56
HKSE27,09426,681413.001.551.40
SSE Composite Index2,9342,90925.000.85-0.14
S&P/TSX Composite Index17,01117,025-14.00-0.083.87
NZ 5010,94810,89256.000.52-1.07
US Volatility (Vix)13
Overseas Market Report

US sharemarkets were mixed on Tuesday. The S&P500 and Dow Jones indexes retreated from record highs after disappointing sales and earnings results from US retailers. Home Depot shares fell by 5.4% after disappointing same-store sales overshadowed betterthan-expected earnings. Shares of department store operator Kohl’s fell by 19.5% on weak same-store sales. The Nasdaq was supported by gains in shares of Advanced Micro Devices (+3.5%). Speaking at a cabinet meeting on Tuesday, US President Donald Trump said that the US will hike tariffs without a trade deal with China. At the close of trade, the Dow Jones fell by 102 points or 0.4%. The S&P500 index was down by almost 2 points or 0.1%, but the Nasdaq index was higher by 20 points or 0.2% - a record close.

Global oil prices fell by the most in 5 weeks on Tuesday on oversupply concerns. Oil prices were hit by rising Norwegian production, increasing US crude inventories (forecast to lift by 1.5 million barrels last week) and concerns that Russia is unlikely to deepen crude output cuts. Brent crude fell by US$1.53 or 2.5% to US$60.91 a barrel. And the US Nymex price fell by US$1.84 or 3.2% to US$55.21 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Tuesday. Copper (+0.7%) rose after China's central bank governor Yi Gang said that policymakers will step up credit support for the economy. Lead was the strongest performer, up 2.4%, but nickel fell (-1.2%) the most. 

The gold futures price rose by US$2.40 or 0.2% to US$1,474.30 an ounce. Spot gold was trading near US$1,472 an ounce in late US trade. Iron ore rose by US75 cents or 0.9% to US$85.85 a tonne as China steel futures rose to 3-month highs on winter production cuts.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent60.8162.44-1.63-2.612.34
Oil - West Texas crude55.1557.05-1.90-3.332.55
Gold Spot $/OZ1,473.001,472.000.200.01-1.16
Silver Spot $/OZ17.2017.200.000.01-2.25
Iron Ore81.6079.701.902.32-11.30
Thermal Coal Newcastle67.4067.50-0.10-0.15-0.15
APAC Hard Coking Coal FOB143.00143.000.000.00-7.74
Aluminium ($US/t)1,7341,740-6.00-0.36-0.04
Copper Mar-18 ($US/lb)2.662.623.601.390.78
Lead ($US/t)1,9851,93947.002.40-9.64
Nickel ($US/t)14,63514,818-183.00-1.23-10.23
Zinc ($US/t)2,3642,3632.000.06-4.96
Tin ($US/t)15,96516,034-69.00-0.43-5.63
Uranium ($US/lb)26.0025.001.002.174.43
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,9146,87242.000.622.30
S&P/ASX 2006,8146,76747.000.702.47
ASX 24 Futures6,786
Australian Market Report

Tuesday 19 November 2019 - close. The Australian share market has rallied and the dollar has dipped after it was revealed the Reserve Bank gave serious thought earlier this month to cutting rates for a fourth time this year. The benchmark S&P/ASX200 index finished Tuesday up 47.4 points, or 0.7 per cent, to 6,814.2 points, while the broader All Ordinaries gained 42.4 points, or 0.62 per cent, to 6,914.1 points.

Ashanti Headlines

Upcoming IPO | Cobre Limited | Bris/Melb/Sydney Roadshow 26th-29th November

Please see below a summary of Cobre Limited (“Cobre” or “the Company”) and the forthcoming IPO. Ashanti has been engaged as Lead Manager and will be marketing the Company next week in Brisbane on the 26th, Melbourne 27th & Sydney on 28th & 29th November. Please reach out to your adviser ASAP to arrange a time to meet.

Cobre Limited is a Western Australian minerals exploration company focused on the Perrinvale high grade VMS discovery. The Company is seeking to raise A$10 million via the issue of 50m fully paid ordinary shares at $0.20 each as part of its IPO on the ASX in January 2019.

Cobre has attracted a register of resources specialist investors (including London listing Metal Tiger Plc (LON: MTR) as cornerstone investor) to expedite its exploration efforts and to rapidly advance the Company toward the development phase. Metal Tiger will invest a minimum $2m into the IPO at $0.20 with the option to increase this to $2.4m to take MTRs holding to no more than 19.99%. This follows an initial seed investment by Metal Tiger of $500k in August 2019. 

The Company’s main focus is on the 80% owned Perrinvale high grade VMS project, 290 km NW of Kalgoorlie which covers 381km2 across 9 tenements and 4 key prospects (Schwabe, Ponchiera, Zinco Lago and Monti). A maiden RC drilling program completed in June 2019 intersected high-grade volcanogenic massive sulphide (“VMS”) base metal & gold mineralisation at shallow depth. This included drilling 5m @ 9.8% Cu, 3.2g/t Au, 34g/t Ag, 3.1% Zn, from 50m in drill hole 19PVRC002 confirming the Projects potential to become one of the newest VMS discoveries globally.

Investment Highlights:

  • Lack of new quality copper development projects
    • Significant underinvestment in development projects globally over the past 5 10 years
  • Narrowing field of investable ASX listed copper companies
    • Finders, Avanco & MOD acquired by majors or PE in last two years
  • Copper discovery rates at decade lows
    • Increasing amount spent on exploration however new discoveries have fallen away
  • Perrinvale Genesis of new mineral field
    • Maiden drilling program intersected high grade volcanogenic massive sulphide chance of further success significantly greater than greenfields exploration
    • Outstanding exploration upside for additional VMS centres in broader 381km2 Perrinvale land holding
  • Attractive valuation entry point
    • Valuation peer companies trading at significant premiums to Cobre post discovery

 

Company Snapshot (Pro Forma $10m raised)

  • Shares on Issue at Listing: 96.8M
  • Options: 14.749M (12.75m 20c 3 yr, 2m 30c 3 yr)
  • Performance Shares: Nil
  • IPO Offer Price: A$0.20 per share
  • Market Cap: $19.4M
  • Cash at bank (27/10/2019): ~$0.6M
  • Cash raised in the IPO (before costs): $10.0M
  • IPO EV: ~$8.8M


Have a question? admin@ashanticapital.com.au

ERA Communications