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03 April 2020 06:51 AM
Overseas Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Dow Jones Industrial Average21,41320,944470.002.24-17.38
S&P 5002,5272,47056.002.28-15.86
NASDAQ7,4877,361127.001.72-13.78
FTSE 100 Index5,4805,45526.000.47-18.43
DAX 309,5719,54526.000.27-20.15
CAC 40 Index4,2214,20714.000.33-21.74
Nikkei 225 (Japan)17,81918,065-247.00-1.37-15.48
HKSE23,28023,086194.000.84-11.43
SSE Composite Index2,7812,73546.001.69-7.09
S&P/TSX Composite Index13,09812,876221.001.72-20.25
NZ 509,9289,87158.000.58-12.50
US Volatility (Vix)51
Overseas Market Report

US sharemarkets see-sawed during the Thursday session. Energy shares rallied 9.1% on a record lift in the oil price. Shares in Haliburton rose by 13.9% with Occidental Petroleum up 18.9%. But investors fretted about the health of the US economy with claims for unemployment insurance soaring. Shares in drugstore retailer, Walgreens, fell by 6.3% after the company reported a fall in same store sales in the past week. The Dow Jones index rose by 470 points or 2.2%, after trading in a 743 point range. The S&P500 index rose by 2.3% and the Nasdaq gained 127 points or 1.7%. 

Global oil prices rose by up to 25% on Thursday after US President Donald Trump said he expects Russia and Saudi Arabia to announce a major production cut, down as much as 10-15 million barrels per day. Further, Saudi state media said that the kingdom was calling for an emergency meeting of OPEC nations and other major oil producers. After rising as much as 47% during the session, Brent crude ended higher by US$5.20 or 21% to US$29.94 a barrel. The US Nymex price rose by US$5.01 or 24.7% to US$25.32 a barrel. Both crude quotes posted record daily percentage gains. 

Base metal prices were mixed on Thursday with lead down 1.4% and aluminium down 0.5%. But copper led the other metals higher, lifting by 2.0%. 

The gold futures price rose by US$47.50 an ounce or 3.0% to US$1625.70. Spot gold was trading near US$1,615 an ounce in late US trade. Iron ore rose by US$1.50 or 1.8% to US$83.50 a tonne.

CommoditiesCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
Oil Brent29.9424.745.2021.02-42.31
Oil - West Texas crude24.8025.32-0.52-2.05-47.44
Gold Spot $/OZ1,611.001,614.00-2.50-0.15-1.79
Silver Spot $/OZ14.5014.500.000.00-15.85
Iron Ore80.7080.70-0.10-0.110.69
Thermal Coal Newcastle66.2066.70-0.50-0.75-0.23
APAC Hard Coking Coal FOB144.00144.000.000.00-7.69
Aluminium ($US/t)1,4581,465-7.00-0.49-14.32
Copper ($US/lb)2.222.22-0.20-0.07-14.05
Lead ($US/t)1,6871,710-23.00-1.37-10.67
Nickel ($US/t)11,26411,21054.000.48-10.83
Zinc ($US/t)1,8781,85820.001.06-6.54
Tin ($US/t)14,44114,41130.000.21-13.14
Uranium ($US/lb)27.0027.000.000.3710.28
Australian Market ReportCurrent
Level
PreviousChangeDaily %
Change
Monthly %
Change
ASX All Ords5,1895,291-102.00-1.93-20.32
S&P/ASX 2005,1545,259-104.00-1.98-19.91
ASX 24 Futures5,250
Australian Market Report

Thursday 2 April 2020 - close. The Australian share market has dropped again amid increasingly dire warnings about how bad the coronavirus crisis could get in the United States. But in a sign of the times, one analyst called the nearly two per cent drop a victory for the bullish, in terms of the market not suffering a much broader sell-off. The S&P/ASX200 benchmark index finished Thursday down 104.3 points, or 1.98 per cent, at 5,154.3, while the All Ordinaries index dropped 102 points, or 1.93 per cent, to 5,188.7.

Ashanti Headlines

Adriatic Metals PLC (ADT.ASX, 97cps, m.cap A$172.4m with 177.8m SOI, Cash cA$26.3m, Polymetallic Explorer / Developer)

  • ADT has provided a general update to shareholders on the operational and financial impacts of COVID-19 on the Company. 
  • The operational activity currently being conducted by the company can be described within three categories - Exploration, Pre-Development and Permitting. 
  • In both the UK and Bosnia, government have imposed substantial restrictions on the movement of people, and in Federation of Bosnia & Herzegovina, these restrictions include a curfew on all residents between 8pm and 5am daily. Additionally, Bosnia has closed its borders to all foreigners.
  • Exploration:
    • Adriatic commenced a 20,000m drilling campaign for 2020 in mid January, ramping up the rig count recently to 5 rigs, with a 6th rig contracted and enroute from Serbia. The recent closure of the border has delayed the arrival of the 6th rig.. All other exploration activity is continuing unaffected, with supplies being delivered on time, and core sample exports to Bor in Serbia being only slightly delayed by border restrictions. ADT have sought and received a special dispensation from the municipal emergency coordinator to continue drilling 24 hours per day during the curfew period. In 2020 to date we have drilled over 2,800m in 10 holes, and have recently permitted a further 29 drill pads for an increase in exploration activity over the spring and summer months. No assay results from the 2020 program have been received to date, but we have been advised that no delays are expected by ALS, our metallurgical assay provider in Serbia.
  • Pre-Development:
    • All activities related to metallurgical test work, geo-chemical domaining and pre-feasibility assessment are underway and largely unaffected by the current crisis. For the Environmental and Social Impact Assessment, where some foreign based consultants had been expected to conduct site visits for various streams of work, these have been substituted by local resources under the guidance of our international consultants, with no resulting impact on the quality of work. As a result of the expansion in the mineralised footprint visually evident from recent drilling, a deferral of the Pre-Feasibility Study (“PFS”) is being considered to allow additional drilling to be incorporated into an updated mineral resource estimate, which will be utilised for the PFS. This is not as a result of any delays in PFS work streams, which are all progressing as planned, or any COVID-19 related issues.
  • Permitting:
    • In December a public hearing was held for the issue of the Environmental Permit which resulted in a small number of additional information requests from the Federal Ministry for Environment and Tourism. The company submitted responses in late January and has been waiting for the 5-member panel of the review committee to submit their reports to the Ministry. ADT understand that those reports have been submitted and we expect the final Environmental Permit to be issued imminently. Once received the company will submit the Urban Planning Application and schedule a public hearing for the approval of the Exploitation Permit. Under the State of Emergency implemented by the Bosnian Government recently, such a public hearing would not be permitted, and we are seeking guidance from the Federal Ministry as to whether such a hearing could be done via webcast. If the public hearing is delayed, this will result in delays to the issue of the Exploitation Permit but are unlikely to affect the critical path for project delivery. As at 2 April Bosnia & Herzegovina has approximately 500 confirmed cases of COVID-19, of which 29 are in Zenica-Doboj Canton, but no cases have been reported in Vares Municipality. 
  • Paul Cronin, Managing Director & CEO commented, “Whilst our priority is the health and well-being of our staff and our local community, our team in Vares have been working with the authorities to observe social distancing guidelines but simultaneously continue to deliver on the project milestones. We will continue to monitor the situation in Vares and Bosnia, and look forward to a relaxation on the restrictions of people movement at the appropriate time, but at this stage the effects of COVID-19 on our business are minimal.” 
  • Please contact your adviser or the desk on +61 8 6319 7807 should you wish to discuss further.

Have a question? admin@ashanticapital.com.au

ERA Communications