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26 March 2020 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average21,20120,705496.002.39-21.36
S&P 5002,4762,44728.001.15-20.56
NASDAQ7,3847,418-34.00-0.45-17.78
FTSE 100 Index5,6885,446242.004.45-19.23
DAX 309,8749,701174.001.79-22.71
CAC 40 Index4,4324,243190.004.47-22.03
Nikkei 225 (Japan)19,54718,0921.008.04-12.84
HKSE23,52722,663864.003.81-11.87
SSE Composite Index2,7822,72259.002.17-6.91
S&P/TSX Composite Index13,13912,571568.004.52-22.90
NZ 509,5379,264273.002.94-17.31
US Volatility (Vix)64
Overseas Market Report

US sharemarkets ended mixed on Wednesday, easing from highs as 'snags' developed on passing the stimulus package. Shares in Boeing rose by 24.3% and the Dow Jones airline index rose by 10%. The Dow Jones index rose by 496 points or 2.3%, falling over 700 points in the last 20 minutes of trade and trading in a 1,482 point range over the session. The S&P500 index rose by 1.2% and the Nasdaq lost 34 points or 0.5%. 

Global oil prices rose by up to 2% on Wednesday. Traders remain hopeful that a stimulus package would provide support for fuel demand. Reuters noted "US weekly gasoline product supplied - a proxy for demand - dropped 859,000 barrels per day (bpd) to 8.8 million bpd last week, the biggest one-week decline since September 2019, according to the U.S. Energy Information Administration." Brent crude rose by US24 cents or 0.9% to US$27.39 a barrel. The US Nymex price rose by US48 cents or 2.0% to US$24.49 a barrel. 

Base metal prices were higher on Wednesday. Prices rose by up to 6.7% with tin doing best although lead rose 3.9%. But aluminium was the exception, down 0.7%. 

The gold futures price fell by US$27.90 an ounce or 1.7% to US$1,632.30 an ounce. Spot gold was trading near US$1,602 an ounce in late US trade. Iron ore rose by US$2.75 or 3.3% to US$87.05 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent27.3927.150.240.88-50.15
Oil - West Texas crude24.4024.49-0.09-0.37-49.93
Gold Spot $/OZ1,614.001,617.00-2.90-0.18-1.64
Silver Spot $/OZ14.4014.50-0.10-0.50-19.62
Iron Ore79.8080.00-0.20-0.30-6.86
Thermal Coal Newcastle66.4066.50-0.20-0.23-2.28
APAC Hard Coking Coal FOB149.00149.000.000.00-6.88
Aluminium ($US/t)1,5031,514-11.00-0.73-10.69
Copper ($US/lb)2.232.203.701.66-13.34
Lead ($US/t)1,6261,56661.003.88-14.95
Nickel ($US/t)11,21811,18830.000.27-9.33
Zinc ($US/t)1,8201,80318.000.98-9.44
Tin ($US/t)14,37413,474900.006.68-13.96
Uranium ($US/lb)26.0026.000.000.004.44
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,0064,753253.005.32-26.28
S&P/ASX 2004,9984,736262.005.54-25.49
ASX 24 Futures5,149
Australian Market Report

Wednesday 25 March 2020 - close. Australian shares have gained for back to back days for the first time since the coronavirus crisis began, rallying in the final minutes of trade on reports that US politicians have reached a deal on a massive US stimulus deal to shore up the world's biggest economy. The S&P/ASX200 benchmark index powered almost six per cent in early trade, faded before noon and then gained 153 points in the last 15 minutes of the day after the White House announced it had a deal on the $A3.3 trillion stimulus measure. The index closed on Wednesday up 262.4 points or 5.54 per cent, to 4,998.1, while the All Ordinaries index finished up 252.9 points, or 5.32 per cent, higher at 5,006.2.  

Ashanti Headlines

Trident Resources Plc (TRR.LN) - Creation of a New Growth-Focused Diversified Royalty and Streaming Company

  • Trident Resources (LSE: TRR) (“Trident” or the “Company”) is pleased to announce that it has entered into a definitive purchase agreement to acquire a significant, cash generative mining royalty (the “Acquisition”). The Acquisition will initiate the establishment of Trident as a new, growth-focused diversified mining royalty and streaming company.
  • As the Acquisition will constitute a change in strategic mandate and there is insufficient publicly available information about the proposed transaction, Trident’s shares will be suspended both from trading on the Main Market of the London Stock Exchange (the “LSE”) and from listing on the Official List (Standard Segment) of the FCA with immediate effect. On completion, Trident intends to seek the cancellation of the admission of its Ordinary Shares from the Official List of the FCA (Standard Segment) and their trading on the LSE’s main market, and seek admission to trading on the AIM Market of the LSE (“AIM”), which the Directors consider to be a more suitable market and regulatory environment for a growth-focused royalty and streaming company. Concurrent with the proposed admission to AIM, Trident intends to conduct a financing and change its corporate name to Trident Royalties Plc.

Highlights:

  • Creation of new, growth-focused diversified mining royalty and streaming company aiming to provide investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals;
  • Agreement to acquire a significant, cash generative royalty:
    • A 1.5% free on board (“FOB”) revenue royalty over part of the Koolyanobbing Iron Ore Operation in Western Australia for a staged cash consideration totalling A$7.0 million;
    • The royalty is over an asset located in the mining-friendly jurisdiction of Australia, with an established production track record and operated by a proven counterparty - Mineral Resources Ltd (ASX:MIN);
    • Last quarterly payment of approximately A$731,000; and
    • The asset operator recently announced its intention to increase production from the whole Koolyanobbing operation, which is anticipated to deliver stronger cashflow to the royalty;
  • Trident has a pipeline of attractive follow-on transactions with further acquisitions expected to be announced in the near-term;
  • Trident’s board of directors considers mining royalty and streaming assets to represent an attractive opportunity for shareholders and new investors, providing exposure to commodity prices with a lower risk profile than mining equities, participating in growth from development and exploration expenditure without cost or dilution to the holder;
  • Strategy to participate in a strong growth market for alternative finance in the mining sector by writing new royalties, as well as continued consolidation of existing royalties and streams available on attractive terms, taking advantage of gaps in the market under-exploited by peers; and
  • Strong leadership and adviser team with a supportive shareholder base, well positioned to execute on strategy.
  • Please see full announcement here
  • Please contact your adviser or the desk on +61 8 6319 7807 should you wish to discuss further.

Adriatic Metals PLC (ADT.ASX, 96.5cps, m.cap A$171.5m with 177.8m SOI, Cash cA$26.3m, Polymetallic Explorer / Developer)

  • ADT has announced recent reprocessing of gravity data over the Rupice and Jurasevac-Brestic areas has highlighted a number of significant geophysical anomalies. 
  • 29 new drill platforms have now been approved for infill and extension drilling at Rupice and Jurasevac-Brestic. 
  • Infill and extension drilling at Rupice continues as operations largely unaffected by COVID-19 response 
  • Paul Cronin, Adriatic’s Managing Director and CEO commented, “from the reprocessing of the gravity data, we can see that gravity correlates extremely well with the known high-grade mineralisation that we see at Rupice. This style of mineralisation usually occurs in clusters, and the fact we also see a large, intense anomaly at Jurasevac-Brestic is extremely encouraging. We intend to get a drill rig to test this as soon as one becomes available”. He added “there are a number of additional anomalies seen between Rupice and Jurasevac-Brestic, that will also need testing. We have five rigs operating and hope to have a 6th rig operating once the Bosnian border re-opens to our foreign based drill crews. The Bosnian government response to the COVID-19 issue has required us to conduct some contingency planning for potential logistical issues, but to date is not having a major impact on the drill program, the pre-feasibility work or permitting, which are our 3 predominant work streams for the first half of 2020. We will continue to monitor the situation for potential impacts and implement contingency plans if needed”
  • Please see link to full announcement here

Have a question? admin@ashanticapital.com.au

ERA Communications