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17 February 2020 08:05 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average29,39829,423-25.00-0.090.17
S&P 5003,3803,3746.000.181.52
NASDAQ9,7319,71219.000.203.65
FTSE 100 Index7,4097,452-43.00-0.58-3.46
DAX 3013,74413,745-1.00-0.011.61
CAC 40 Index6,0696,093-24.00-0.39-0.51
Nikkei 225 (Japan)23,68823,828-140.00-0.59-1.47
HKSE27,81627,73086.000.31-4.27
SSE Composite Index2,9172,90611.000.38-5.15
S&P/TSX Composite Index17,84817,82127.000.151.65
NZ 5011,84711,83512.000.100.40
US Volatility (Vix)14
Overseas Market Report

US sharemarkets were mixed on Friday. Economic data was soft but largely met forecasts. Investors squared positions at the end of the week and ahead of a holiday weekend. Shares in chipmaker Nvidia rose 7% after releasing its earnings result. Shares in online travel company Expedia rose 11% after it forecast strong core quarterly earnings growth. At the close of trade, the Dow Jones index was lower by 25 points or 0.1%. The S&P500 index rose by 0.2% to record highs and the Nasdaq rose 19 points or 0.2% to record highs. Over the week the Dow rose 1.0%, S&P 500 rose 1.6% and the Nasdaq rose 2.2%. 

Global oil prices rose by up to 1.7% on Friday. Investors expressed hopes that the economic impact of the coronavirus outbreak would be short-lived and largely contained to China. The number of oil rigs in operation in the US rose by two to 678 - the second week of gains. Brent crude rose by US98 cents or 1.7% to US$57.32 a barrel. The US Nymex price rose by US63 cents or 1.2% to US$52.05 a barrel. Over the week Brent rose by 5.2% and Nymex rose 3.4% - the first gains in six weeks. 

Base metal prices fell by between 0.4-2.1% on Friday with copper. lead and tin down the least and nickel and aluminium down the most. Over the week, aluminium and zinc fell by up to 0.3%. But lead rose 4.1% and copper, nickel and tin rose 1.9-2.1%. 

The gold futures price rose by US$7.60 an ounce or 0.5% to US$1,582.70 an ounce. Spot gold was trading near US$1,584 an ounce in late US trade. Over the week gold rose by US$14.10 or 0.9%. Iron ore rose by US15 cents or 0.2% to US$88.35 a tonne. Over the week iron ore rose by US$5.70 or 6.9%.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent57.2857.32-0.04-0.07-11.67
Oil - West Texas crude52.1452.050.090.17-10.93
Gold Spot $/OZ1,583.001,584.00-0.70-0.051.67
Silver Spot $/OZ17.7017.700.000.03-1.63
Iron Ore80.2080.40-0.30-0.34-10.17
Thermal Coal Newcastle69.5069.100.400.51-1.91
APAC Hard Coking Coal FOB159.50161.00-1.50-0.933.57
Aluminium ($US/t)1,6961,722-26.00-1.50-4.83
Copper Mar-18 ($US/lb)2.612.600.800.31-8.36
Lead ($US/t)1,8961,904-8.00-0.41-1.83
Nickel ($US/t)12,93213,204-272.00-2.06-6.16
Zinc ($US/t)2,1352,164-29.00-1.34-10.44
Tin ($US/t)16,51016,570-60.00-0.36-5.11
Uranium ($US/lb)24.0024.000.000.00-0.41
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords7,2097,227-18.00-0.250.40
S&P/ASX 2007,1127,130-19.00-0.260.67
ASX 24 Futures7,050
Australian Market Report

Friday 14 February 2020 - close. The Australian share market has closed higher for a fourth day, with the benchmark index finishing just under a record closing high set three and a half weeks ago. The benchmark S&P/ASX200 index finished Friday up 27 points, or 0.38 per cent, to 7,130.2, just 2.5 points under the all-time record close of 7,132.7 set on January 22. The broader All Ordinaries index added 22.5 points, or 0.31 per cent, to finish at 7,227.1, 21.9 points shy of its closing record.

Ashanti Headlines

Pensana Metals Ltd: (PM8.ASX, 25.5cps, m.cap A$33.6m with 147.4m SOI, Cash $1.3m, Rare Earths explorer)

  • PM8 has announced it is reviewing downstream processing to capture more of the value chain of NdPr in Angola, rather than shipping a blended REO concentrate. 
  • The Company has previously reported a Preliminary Feasibility Study (the “PFS”) co-ordinated by FTSE250 listed Wood Group of a sustainable operation producing, on average, 56,000 tonnes per year of NdPr concentrate for export. The initial capital cost of the project was estimated at approximately US$131 million.
  • Whilst the Company strategy in the PFS is to process onsite and ship a high-grade concentrate, the new study, which will form part of the current Definitive Feasibility Study, will investigate the feasibility of the downstream processing of 50,000 tonnes per annum of concentrate into a high grade NdPr carbonate for export, which could enable the Company to capture a substantially increased proportion of the product value in Angola.
  • The new study will review the economics of this and preliminary studies have indicated that this is expected to require an increase in the capital cost of the project from US$131 million to around US$200 million.
  • The additional work will be completed alongside the DFS, which is expected mid-CY2020.
  • A link to the full announcement can be found here
  • Please contact your adviser or the desk on +61 8 6319 7807.

Cyprium Metals Limited (CYM.ASX, 18.5cps, m.cap A$11.2m with 56.1m SOI, Cash $3.5m, Copper Developer)

  • CYM have released a met-test work update on massive and semi-massive sulphide samples from Hollandaire. 
  • The results are very encouraging with both columns A and B achieving ~92% recovery in only 34 and 21 days. 
  • Additionally, the test work confirmed the process is acid producing (as a by-product) which is expected to be used to leach areas of the mineralisation that is acid consuming – hence a material saving on reagents use. 
  • CYM are commencing a scoping study on a heap leach operation at the Hollandaire copper project.
  • Executive Director Barry Cahill commented “We are exceptionally pleased with the results received to date. Our expectation was that our unique leaching process would have the ability to both accelerate the leach time and produce excess acid on the Hollandaire material. The rapid leach time of the copper, using our unique leaching processes and parameters, has been astounding and outperformed our expectations. The additional benefit of the leach reaction being acid producing is that it will generate surplus acid for use where the mineralised material is acid consuming, thus reducing the operating costs of the process. The initial metallurgical results, in conjunction with recent drilling success, has given the Company the confidence to bring forward the commencement of a scoping study for the project. The study will focus on a heap leach operation designed to treat the Hollandaire copper deposits. The work to be undertaken will include a mineral resource update, further resource definition and extensional drilling, metallurgical test-work and commercial analysis on the potential for a rapid project start-up. A Project Manager has been appointed and has commenced work on the study.”

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ERA Communications