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11 December 2019 06:50 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average27,88227,910-28.00-0.100.72
S&P 5003,1333,136-3.00-0.111.28
NASDAQ8,6168,622-6.00-0.071.66
FTSE 100 Index7,2147,234-20.00-0.28-1.98
DAX 3013,0710-35.00-0.27-1.19
CAC 40 Index5,8485,83711.000.18-0.71
Nikkei 225 (Japan)23,41023,431-21.00-0.090.34
HKSE26,43726,495-58.00-0.22-1.82
SSE Composite Index2,9172,9143.000.100.25
S&P/TSX Composite Index16,95116,9510.000.000.43
NZ 5011,25411,284-31.00-0.273.06
US Volatility (Vix)16
Overseas Market Report

US sharemarkets were weaker on Tuesday. Investors are watching the December 15 start date for the US to impose tariffs on $160 billion on Chinese imports. Investors also await US and European interest rate decisions and the December 12 UK election. At the close, the Dow Jones index fell by 28 points or 0.1%. The S&P500 index fell by 0.1% and the Nasdaq index fell by almost 6 points or 0.1%. 

Global oil prices rose modestly on Tuesday. The OPEC deal provided support to prices but there was on-going uncertainty on the US-China trade talks. Investors awaited weekly US data on crude inventories and interest rate decisions in the US and Europe. The most active Brent crude contract was up by US9 cents or 0.1% to US$64.34 a barrel. And the US Nymex price rose by US22 cents or 0.4% to US$59.24 a barrel. 

Base metal prices were mixed on the London Metal Exchange on Tuesday. Zinc fell 0.7% and aluminium fell by 0.5%. But other metals rose by 0.5-1.6% with tin doing the best. 

The gold futures price rose by US$3.30 or 0.2% to US$1,462.60 an ounce. Spot gold was trading near US$1,465 an ounce in late US trade. Iron ore fell by US$1.20 or 1.3% to US$93.15 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent64.2064.25-0.05-0.082.70
Oil - West Texas crude59.2459.020.220.373.49
Gold Spot $/OZ1,459.001,464.00-5.10-0.350.23
Silver Spot $/OZ16.8016.700.100.74-0.40
Iron Ore83.8084.40-0.60-0.661.11
Thermal Coal Newcastle66.0066.20-0.20-0.30-1.20
APAC Hard Coking Coal FOB145.50139.006.504.680.69
Aluminium ($US/t)1,7521,760-9.00-0.48-3.62
Copper Mar-18 ($US/lb)2.762.750.900.332.74
Lead ($US/t)1,8931,87616.000.87-10.36
Nickel ($US/t)13,33813,27860.000.45-17.61
Zinc ($US/t)2,2242,241-17.00-0.74-11.85
Tin ($US/t)17,44017,170270.001.574.52
Uranium ($US/lb)26.0026.000.000.004.66
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords6,8126,836-24.00-0.36-0.94
S&P/ASX 2006,7076,730-23.00-0.34-0.97
ASX 24 Futures6,719
Australian Market Report

Tuesday 10 December 2019 - close. The Australian share market has moved lower, with every sector save mining in retreat ahead of several big macroeconomic risk events. The benchmark S&P/ASX200 index finished Tuesday 23.1 points lower, or 0.34 per cent, to 6,706.9 points, while the broader All Ordinaries closed down 24.3 points, or 0.36 per cent, to 6,812.1 points.

Ashanti Headlines

***INITIAL PUBLIC OFFERING*** COBRE LIMITED (ASX:CBE)

Please see below a summary of Cobre Limited (“Cobre” or “the Company”) and the forthcoming IPO. Ashanti has been engaged as Lead Manager. The prospectus was lodged on Friday 6th December and we are now seeking bids for the institutional component of the offer. Please reach out to your adviser or the desk on +61 8 6319 7807 to discuss the offer further. 

Cobre Limited is a Western Australian minerals exploration company focused on the Perrinvale VMS prospect.

The Company’s flagship asset, the 80% owned Perrinvale 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 at the Schwabe prospect intersected high-grade volcanogenic massive sulphide (“VMS”) base metal & gold mineralisation at shallow depth. This included drilling 5m @ 9.75% Cu, 3.2g/t Au, 34g/t Ag, 3.1% Zn.

Cobre’s short-term aim is to drill test priority targets identified at Perrinvale which are prospective for VMS mineralization following a recent airborne EM survey.

In addition, Cobre has executed an Earn In and Joint Venture Agreement with private company GTTS Generations Pty Ltd to earn up to an 80% interest in the Sandiman Project. Sandiman is located east of Carnarvon on EL 09/2316 and is considered a prospective sediment hosted base-metals project. Independence Group (ASX: IGO) Lyons River Project surrounds the Sandiman Project.

Investment Highlights

✓ Perrinvale – Genesis of new mineral field

  • Maiden Drilling program intersected high-grade volcanogenic massive sulphide – chance of further success significantly greater than greenfields exploration
  • Air-borne EM area identified conductor at Schwabe prospect, but stronger conductors in various other areas of Cobre’s tenements, indicating prospective areas for further VMS prospects
  • Drilling to commence at Perrinvale shortly after IPO
  • Well established infrastructure provides year-round access

✓ Well funded

  • $10.53m (before costs) post IPO to support ongoing exploration

✓ Metal Tiger Plc – Cornerstone investor in Cobre

  • Initial seed investment of $500k with follow on IPO investment of a minimum of $2.0M and up to $2.4M, to take MTRs aggregate holding to no more than 19.99%

✓ Experienced directors and technical team ✓ Focused on early-stage discovery to generate maximum value growth

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
  • Existing cash reserves: ~$0.53M
  • Cash raised in the IPO (before costs): $10.0M
  • IPO EV: ~$8.83M

Have a question? admin@ashanticapital.com.au

ERA Communications