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02 December 2019 08:12 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average28,05128,164-113.00-0.402.57
S&P 5003,1413,154-13.00-0.402.42
NASDAQ8,6658,705-40.00-0.463.33
FTSE 100 Index7,3477,416-70.00-0.940.60
DAX 3013,23613,246-9.00-0.072.12
CAC 40 Index5,9055,913-8.00-0.132.49
Nikkei 225 (Japan)23,29423,409-115.00-0.491.94
HKSE26,34626,894-547.00-2.03-2.78
SSE Composite Index2,8722,890-18.00-0.61-2.91
S&P/TSX Composite Index17,04017,115-74.00-0.432.69
NZ 5011,34811,31731.000.285.45
US Volatility (Vix)13
Overseas Market Report

US sharemarkets fell from record highs on Friday on profit-taking. The session had a weaker tone after China threatened to retaliate against a US law backing pro-democracy protesters in Hong Kong. There was caution on retailers ahead of Black Friday sales. The Dow Jones index fell almost 113 points or 0.4%. The S&P500 index fell 0.4% and the Nasdaq index lost 40 points or 0.5%. Over the week the Dow rose by 0.7%, the S&P 500 rose 1.0% and the Nasdaq gained 1.7%. Over the month the Dow rose 3.7%, S&P 500 rose 3.4% and Nasdaq rose 4.5%. 

Global oil prices fell on profit-taking at the end of the week and month and ahead of the OPEC meeting. Brent crude fell by US$1.44 or 2.3% to US$62.43 a barrel. And the US Nymex price fell by US$2.94 or 5.1% to US$55.17 a barrel. Over the week Brent fell by 1.5% and Nymex lost 4.5%. Over the month Brent rose 6% and Nymex rose 2.3%. 

Base metal prices fell by up to 2.5% on the London Metal Exchange on Friday with nickel down the most. But tin bucked the trend, rising by 0.5% while aluminium rose by 1.6%. Over the week nickel, lead and zinc fell, with nickel down 6.7%. Other metals rose by up to 2.3%, with aluminium up the most. Nickel fell 18% in November - its biggest fall in eight years on 'faltering steel output from top producer China and waning impact from an Indonesian ore export ban.' 

The gold futures price rose by US$2.00 to US$1,465.60 an ounce. Spot gold was trading near US$1,466 an ounce in late US trade. Over the week gold rose by US$2.00 or 0.1% Iron ore fell by US50 cents or 0.6% to US$87.25 a tonne. Over the week iron ore fell by US55 cents or 0.6%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent61.1160.490.621.02-0.94
Oil - West Texas crude55.8955.170.721.31-0.55
Gold Spot $/OZ1,460.001,444.0016.501.14-3.56
Silver Spot $/OZ17.0017.00-0.10-0.35-6.29
Iron Ore83.7083.500.200.20-2.22
Thermal Coal Newcastle69.4068.900.400.653.58
APAC Hard Coking Coal FOB145.50139.006.504.680.69
Aluminium ($US/t)1,7921,76329.001.632.31
Copper Mar-18 ($US/lb)2.652.640.300.11-0.30
Lead ($US/t)1,9231,929-7.00-0.34-15.90
Nickel ($US/t)13,61813,968-351.00-2.51-19.25
Zinc ($US/t)2,3002,302-3.00-0.13-11.11
Tin ($US/t)16,50416,42084.000.51-1.91
Uranium ($US/lb)26.0026.000.000.008.58
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,9786,94830.000.442.94
S&P/ASX 2006,8786,84632.000.473.14
ASX 24 Futures6,874
Australian Market Report

Friday 29 November 2019 - close. The Australian share market has pulled back after hitting a new intra-day all-time high earlier in the day, as markets turned cautious on fears a new US law backing Hong Kong protesters could sink a US-China trade deal. The benchmark S&P/ASX200 index closed on Friday down 18 points, or 0.26 per cent, to 6,846 points, while the broader All Ordinaries closed down 17.6 points, or 0.25 per cent, to 6,948 points.

Ashanti Headlines

Pensana Metals Ltd: (PM8.ASX, 18cps, m.cap A$26m with 147.4m SOI, Cash $3m, Rare Earths explorer)

  • PM8 has provided an update on site activities and guidance on overall project development and financing
  • PM8's main focus is to bring the project to Definitive Feasibility Study status, obtain full permitting, agree fiscal terms and secure offtake agreements, which collectively will enable debt financing to be finalised by the middle of next year.
  • Drilling programme to extend mine life
    •  Twenty five holes for 672 metres have been completed of the 7,000 metre reverse circulation programme designed to convert more of the Inferred Mineral Resource into Measured and Indicated Mineral Resource and then into Proved and Probable Ore Reserves on completion of further technical studies for financing purposes.
    • The programme is expected to increase the current mine life of nine years. Initial results from the programme are expected to be reported in January and an updated Mineral Resource estimate is expected in May 2020.
    • In addition as previously advised the programme will be testing high grade targets which have the potential to provide sources of high grade NdPr material and will drill into the fresh material immediately underlying the shallow weathered zone in the current mine plan.  
  • Bulk sample containers en route to Perth
    • The four containers with 60 tonnes of high‐grade weathered mineralisation mined from 23 locations across the initial mining area have left the Port of Lobito en route to Perth Western Australia. The pilot plant testwork program will produce approximately two tonnes of concentrate for delivery to customers ahead of offtake negotiations and will provide detail parameters for the flotation circuit final design. The testwork is expected to confirm that the NdPr concentrate will meet customer expectations in terms of grade and mineralogy and that deleterious elements such as uranium will be amongst the lowest in the world with overall radioactivity well within international standards for transportation.
  • Definitive Feasibility Study (DFS)
    • Wood Group has commenced preparation of the DFS which is scheduled to be completed in June2020.   Wood will progressively transfer reporting responsibility from the Perth office which has expertise in process design and mining to the Johannesburg office which has specific expertise in engineering, procurement, construction and management in the African context.
  • Permitting well advanced  
    • The Environmental Impact Assessment Study is well advanced and following completion of the Preliminary Feasibility Study the documentation supporting the application for the Mining Licence is underway.   Full permitting is expected to be achieved by March 2020.  
  • Mutually acceptable fiscal terms  
    • As part of the permitting process the Company is negotiating mutually acceptable fiscal arrangements which will meet the Government’s objectives whilst accommodating the expected requirements from the Company’s lenders. These will be finalised as part of the Mining Licence application.
  • Mezzanine and Main Financing
    • The Company has engaged with a number of well‐established mining financial institutions for the provision of a mezzanine finance facility to take the project from PFS through DFS to the main financing by the middle of next year. The objective is to have these funds available to draw down by January 2020.
    • In addition, the Company has engaged in similar discussions with a number of financiers who have expressed interest in the main financing. These discussions are based on the completion of the DFS, the project being fully permitted and with offtake agreements in place. To date the discussions have addressed the issues of sovereign risk, fiscal terms and rare earth pricing.   The Company has commenced discussions with UK Export Finance which last year provided €450 million in export finance guarantees to UK companies investing in Angola and also with lenders who are actively lending to the oil and gas sector in Angola.  
  • LSE Standard Listing
    • The Company has lodged a scheme of arrangement with ASIC and the Court of Western Australia for the redomiciling of the Company to the UK. The scheme booklet once approved will be circulated to shareholders for approval.   The Company has commenced preparation of the necessary documentation and applications for the dual listing of the Company on the LSE and the ASX scheduled for early February 2020.
  • 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


Have a question? admin@ashanticapital.com.au

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