close
Ashanti Mailing List

Join our distribution list for direct access to exclusive corporate opportunities

* Indicates a required field
Logo
Please enable images to view this content
15 January 2020 08:04 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average28,94028,90733.000.112.86
S&P 5003,2833,288-5.00-0.153.61
NASDAQ9,2519,274-23.00-0.245.91
FTSE 100 Index7,6227,6185.000.063.66
DAX 3013,45613,4525.000.041.31
CAC 40 Index6,0416,0365.000.082.06
Nikkei 225 (Japan)24,02523,851175.000.730.01
HKSE28,88528,955-70.00-0.244.32
SSE Composite Index3,1073,116-9.00-0.284.69
S&P/TSX Composite Index17,35317,29359.000.342.06
NZ 5011,65511,62530.000.263.68
US Volatility (Vix)12
Overseas Market Report

US sharemarkets ended mixed and well off session highs after the release of a wire report discussing the timeline for US-China tariffs. According to Bloomberg News the US "will review and possibly trim existing levies on China no sooner than 10 months after the deal is signed." But there were stronger-than-expected earnings from JP Morgan and Citigroup. Shares of JP Morgan rose 1.2% with Citigroup up 1.6%. But shares in Wells Fargo fell 5.4% after reporting weaker earnings. And while banks were generally higher, tech stocks gave back some of the previous days gains. Shares in Delta Airlines rose 3.3% after reporting a better-thanexpected quarterly profit. The Dow Jones index rose by 33 points or 0.1% after being up 147 points. The S&P500 index fell 0.2% from record highs and the Nasdaq index lost 23 points or 0.2%.

Global oil prices rose by up to 0.5% on Tuesday. Investors awaited the signing of the US-China trade deal. Supporting oil prices was data showing a 9.5% lift in Chinese oil imports over 2019. The Brent crude price rose by US29 cents or 0.5% to US$64.49 a barrel. And the US Nymex price rose by US15 cents or 0.3% to US$58.23 a barrel. 

Base metal prices were mixed on Tuesday. Lead, tin and aluminium rose by up to 1.9%. But copper rose just 0.1% and zinc lost 0.3% while nickel fell by 1.6%. 

The gold futures price fell by US$6.00 or 0.4% to US$1,542.40 an ounce. Spot gold was trading near US$1,546 an ounce in late US trade. Iron ore rose by US$1.65 or 1.7% to US$96.15 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent64.4964.200.290.45-1.12
Oil - West Texas crude58.1458.23-0.09-0.15-3.21
Gold Spot $/OZ1,549.001,546.003.000.194.95
Silver Spot $/OZ17.8017.800.000.155.30
Iron Ore88.5088.100.400.452.62
Thermal Coal Newcastle70.8072.20-1.50-2.016.79
APAC Hard Coking Coal FOB155.50154.501.000.656.87
Aluminium ($US/t)1,7821,7757.000.411.47
Copper ($US/lb)2.862.87-1.00-0.333.00
Lead ($US/t)1,9321,89537.001.942.06
Nickel ($US/t)13,78114,008-227.00-1.62-2.35
Zinc ($US/t)2,3842,390-6.00-0.265.83
Tin ($US/t)17,40017,34753.000.310.92
Uranium ($US/lb)25.0024.000.000.41-3.72
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords7,0947,07816.000.233.65
S&P/ASX 2006,9766,96214.000.203.51
ASX 24 Futures6,918
Australian Market Report

Tuesday 14 January 2020 - close. Australian shares have hit a fresh record high amid surging global investor optimism ahead of a looming US-China trade deal. The benchmark S&P/ASX200 index surged in the final half-hour of trading to finish Tuesday on the highs of the day at 6,962.2 points, up 58.5 points - or 0.85 per cent - from Monday. The broader All Ordinaries index closed up 57.8 points, or 0.82 per cent, to 7,078 points.

Ashanti Headlines

Resolute Mining Limited (RSG.ASX, 1.18cps, m.cap A$1.081B with 903.2m SOI, Cash cA$181m, Base Metals Explorer)

  • RSG has signed definitive transaction documentation to sell the Ravenswood Gold Mine in Queensland (Ravenswood) to a consortium comprising a fund (EMR Fund) managed by specialist resources private equity manager EMR Capital Management Limited (EMR Capital), and Singapore-listed mining and energy company, Golden Energy and Resources Limited (SGX:AUE) (GEAR).
  • Resolute will receive cash proceeds of up to A$300 million comprising: 
    • A$100 million of upfront value consisting of A$50 million of cash and A$50 million in promissory notes; 
    • up to A$50 million linked to the average gold price over a four-year period (gold price contingent payment); and 
    • up to A$150 million linked to the investment outcomes of Ravenswood for the EMR Fund (upside sharing payment).
  • The transaction has been structured to maximise Resolute’s exposure to the future success of the Ravenswood Expansion Project while transferring the capital expenditure funding requirements and development obligation to a highly credentialed and experienced consortium with a strong relevant track record in successful project development.
  • Sale terms agreed with the EMR Capital and GEAR consortium ensure that Resolute retains upside exposure with no requirement to fund the future capital expenditure associated with the Ravenswood Expansion Project.
  • Completion of the transaction is subject to standard conditions precedent for a transaction of this nature including approvals from Australia’s Foreign Investment Review Board, indicative Ministerial approval for the transfer of mining tenements, Ministerial consent for the transfer of a project specific environmental approval, approval from Resolute’s existing lending bank syndicate and execution of deeds of assumption in relation to third party contracts.
  • Completion of the transaction is targeted to occur prior to 31 March 2020 subject to the satisfaction of conditions precedent (Financial Close).
  • A link to the announcement can be found  here

Have a question? admin@ashanticapital.com.au

ERA Communications