Argonaut | The Natural Choice in Resources

U.S. stocks rose for the first time in six days, with beaten-down technology shares leading the rebound on speculation trade tensions will ease. The Dow Jones added 0.8% to 25289 whilst the S&P 500 gained 1.1% to 2730; The U.S. plans to raise tariffs on Chinese imports in January of 2019, with president Donald Trump and China’s Xi Jinping likely at best to agree on a “framework” for further talks to resolve trade tensions at an upcoming meeting; Zinc rose to the highest level in two weeks as demand continues to outstrip production and inventories tracked by the LME sank to the lowest levels in a decade. Oil prices rose slightly as tension over U.S. sanctions against Saudi Arabia countered a jump in American crude stockpiles; UK Prime Minister, Theresa May has won the support from her cabinet for the U.K. and European Union to agree on the draft Brexit treaty; Gold prices are drawing support from a rebound in demand for exchange-traded funds backed by gold, countering a strong dollar and rising U.S. interest rates. The US gold price increased 0.2% to 1213.0 US$/oz.

After a long gestation period, GNG has been awarded a $366m EPC contract with Sheffield Resources (SFX) for the Thunderbird Mineral Sands Project in north-west WA. The project still requires financing and FID, but at this stage construction is expected to kick off in 2Q 2019. We have pulled back FY19 forecasts given some uncertainty over revenue timing, but note that if SFX goes ahead, slippage out of FY19 buffers FY20 and FY21. Our positive view is unchanged, and our retained $1.55 valuation reflects longer term value. BUY.

Argonaut is pleased to announce the successful $12.5 million Initial Public Offering (“IPO”) on the ASX of Stealth Global Holdings Ltd (“Stealth” or “the Company”). Stealth is a fast-growing sales and distribution group supplying safety, industrial, workplace and healthcare consumable products and customised supply solutions to business customers across the resources, engineering, transport and general industrial sectors.