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
07 February 2020 07:13 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average29,38029,29189.000.302.36
S&P 5003,3463,33511.000.333.07
NASDAQ9,5729,50963.000.675.52
FTSE 100 Index7,5057,48222.000.30-0.91
DAX 3013,57513,47896.000.722.63
CAC 40 Index6,0385,98553.000.880.43
Nikkei 225 (Japan)23,87423,320554.002.381.26
HKSE27,49426,787707.002.64-2.92
SSE Composite Index2,8672,81848.001.72-7.67
S&P/TSX Composite Index17,75717,652106.000.603.81
NZ 5011,74711,604143.001.231.03
US Volatility (Vix)15
Overseas Market Report

US sharemarkets hit record highs on Thursday. Investors were encouraged by China's move to cut tariffs a day after the central bank cut interest rates. US economic data was also better-thanexpected. Shares in Twitter rose by 15% after quarterly revenue passed $1 billion. More than 70% of 305 S&P 500 companies that have reported so far have exceeded quarterly earnings estimates, according to IBES data form Refinitiv. At the close of trade, the Dow Jones index was higher by 89 points or 0.3%. The S&P500 index was up by 0.3% and the Nasdaq index gained 63 points or 0.7%. 

Global oil prices rose were mixed on Thursday. Investors await news over potential output cuts from OPEC. Also the World Health Organisation noted that Wednesday was the first day that the number of new coronavirus cases had dropped in China. Brent crude fell by US35 cents or 0.6% to US$54.93 a barrel. The US Nymex price rose by US20 cents or 0.4% to US$50.95 a barrel. 

Base metal prices were higher by up to 1.6% on the London Metal Exchange on Thursday with lead up the most while aluminium rose 1.3%. But nickel lost 0.8% and zinc fell 0.2%. 

The gold futures price rose by US$7.30 an ounce or 0.5% to US$1,565.10 an ounce. Spot gold was trading near US$1,566 an ounce in late US trade. Iron ore rose by US$1.60 or 2.0% to US$82.15 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent54.9355.28-0.35-0.63-20.29
Oil - West Texas crude51.2950.950.340.67-18.20
Gold Spot $/OZ1,567.001,567.00-0.10-0.01-0.50
Silver Spot $/OZ17.8017.800.000.00-3.17
Iron Ore89.3089.300.000.005.59
Thermal Coal Newcastle69.7069.300.400.583.64
APAC Hard Coking Coal FOB148.50146.002.501.711.19
Aluminium ($US/t)1,7121,69021.001.26-4.90
Copper ($US/lb)2.602.590.400.15-7.03
Lead ($US/t)1,8551,82629.001.59-2.51
Nickel ($US/t)12,97713,080-103.00-0.78-5.60
Zinc ($US/t)2,2102,215-5.00-0.23-5.34
Tin ($US/t)16,69816,577121.000.73-0.93
Uranium ($US/lb)25.0025.000.000.00-0.20
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords7,1457,149-4.00-0.052.90
S&P/ASX 2007,0467,049-3.00-0.053.21
ASX 24 Futures6,991
Australian Market Report

Thursday 6 February 2020 - close. The local bourse has enjoyed its best single day in nearly a month, climbing back over 7,000 following a strong lead from Wall Street. The benchmark S&P/ASX200 index finished Thursday up 73.1 points, or 1.05 per cent, at 7,049.2, while the broader All Ordinaries index closed up 67.8 points, or 0.96 per cent, to 7,148.7. It was the ASX200's third straight day of gains and the most since a 90.7-point, 1.35 per cent rally on January 7.

Ashanti Headlines

**PLACEMENT TODAY** Southern Gold Limited (SAU.ASX)

  

Ashanti Capital Pty Ltd (“Ashanti”) is acting as Lead Manager and Bookrunner to Southern Gold Limited (ASX.SAU) who is seeking to raise a minimum $9,000,000 through an offer of 64.28M new fully paid shares in the Company at an issue price of $0.14. The Company reserves the right to accept oversubscriptions up to a maximum $10M 

 

Please have FIRM bids in by no later than 3pm AWST on Friday 7th of February. Please bid in AUD.

Company Snapshot (Post Issue)

Shares currently on Issue: 88.3M

Issue Price of New Shares: $0.14 

Cash: ~ $11.5M 

Market Cap (undiluted) @ $0.14: ~A$21.34M

EV (undiluted): ~$10.62M

Company Overview

Southern Gold Ltd is a successful gold explorer listed on the Australian Securities Exchange (under ASX ticker “SAU”). Southern Gold owns 100% of a substantial portfolio of high-grade gold and silver projects in South Korea that are largely greenfield epithermal gold-silver targets in the south-west of the country. Backed by a first-class technical team, including renowned geologists Douglas Kirwin and Terry Grammer, Southern Gold’s aim is to find world-class epithermal gold-silver deposits in a jurisdiction that has seen very little modern exploration and where it enjoys a “first mover” advantage.

Investment Highlights

  • South Korea: a long history of gold mining but very little modern exploration and is a first-world stable jurisdiction
  • Strategic target: Tier 1 high grade epithermal gold-silver deposits, e.g. Hishikari in Japan
  • Experienced exploration team: “first mover advantage” and well established in country with ex-Ivanhoe technical team
  • Compelling investment case: tight capital structure, low valuation (EV ~AUD$10.6m) compared to peers in Japan
  • Active: drilling 100% owned targets and 2 field teams currently active, to be expanded to 4 field teams on finance
  • Metal Tiger PLC will be making a strategic investment for a minimum of $3.3M
  • Two prominent Geologists, Douglas Kirwin and Terry Grammar, will be joining the Board as part of the transaction

 

Use of Proceeds

The Company has advised the Lead Manager that proceeds of the Placement ($9m) and the current cash balance ($2.5m) will be used to expedite the development of its South Korean projects including:

  • 20,000m diamond drilling of 4 key projects and 2 scout drilling programmes

$5.20M

  • Support costs for diamond drilling programme and technical team

$2.20M

Total Drilling

$7.40M (~67%)

  • Project Generation

$1.00M (~9%)

  • Corporate costs and administration

$2.60M (~24%)

Total

$11.00M

Indicative Timetable

Please reach out to your adviser or the desk on +61 8 6319 7807 for further information.


Have a question? admin@ashanticapital.com.au

ERA Communications