Market Update & Important Indicators:
The Dow Jones Industrial Average rose at the end of a month marked by several records and the blue-chip index's first close above 19000 following the U.S. presidential election. Stocks had limped into November as investors sold risky assets and bought ones they perceived as being safer, like U.S. government bonds and gold, as polls tightened heading into Election D ay. The blue-chip index fell for seven straight sessions through Nov. 4, while the S&P 500 fell nine days in a row — its longest stretch of losses since 1980. President-elect Donald Trump's surprise win Nov. 8 triggered a sharp initial selloff in stock futures, but shares have rallied since. Investors plowed into shares of banks, industrials and small companies, and sold bonds and their stock-market proxies — dividend-paying shares like utilities — partly on bets that Mr. Trump would loosen regulation and ramp up fiscal spending. A string of economic reports in November showing the housing market improving, consumer prices picking up and jobless claims falling have added to investors' expectations of higher growth and inflation. Energy companies led gains in stocks as U.S. crude oil rocketed 9.3% to $49.44 a barrel — its largest one-day percentage gain since February — after OPEC representatives reached a deal to cut oil production. The S&P 500 energy sector jumped 4.7%.
Stock markets in Asia were mixed Wednesday, as a positive lead from Wall Street was offset by investor concerns that key oil-producing nations won't be able to seal a deal to cut global production. Japan's Nikkei Stock Average closed flat, after earlier opening at its highest level in two days, while Hong Kong's Hang Seng Index closed up 0.2%, and South Korea's Kospi finished up 0.3%. By contrast, the Shanghai Composite Index was off 1%. Energy stocks were the key decliners, after oil prices plunged to a two-week low on Tuesday. There were mounting doubts that members of the Organization of the Petroleum Exporting Countries could reach a deal to cut output in the heavily oversupplied market, when the oil cartel meets later on Wednesday. In addition to Australia's weakness, Stock markets in oil-reliant economies took a hit. The FTSE Bursa Malaysia Index was down 0.3%. Elsewhere, a sharp fall in steel and iron-ore futures prices in China–amid curbs on trading introduced by local exchanges to stop speculative trading–sent shares of local metals producers sharply lower on Wednesday. A recent rally in metals prices that gathered momentum following Donald Trump's win in the U.S. elections was largely driven by Chinese speculative investors, analysts and traders say.
Decline in commodity prices weighed heavily on Australian mining and energy stocks, pulling the market lower for a third straight session. The S&P/ASX 200 lost 17 points, or 0.3%, to finish at 5440.5. The index has continued to pull back after closing at a three-month high on Friday. Materials shares dropped by 2.8% and the energy sector lost 1.9%, countering a second day of gains by the major banks. Copper prices fell Tuesday, dragged lower by a sharp fall in oil prices ahead of a closely watched Organization of the Petroleum Exporting Countries meeting in Vienna where an agreement to cut production is set to be discussed.
Copper for delivery in three months was recently up 2.1% at $5,825/t on the London Metal Exchange. All other base metals ended the day positively. Aluminium prices rose 0.7% to $1,731/t, nickel prices rose 1.5% to 11,196/t, zinc rose 0.1% at $2,688/t, tin closed up 2.6% at $21,320/t, whilst lead rose 0.4% at 2,351/t.
In this Issue:
Paringa Resources (PNL) | Poplar Grove positive BFS | SPEC BUY
Market Cap $83m | Current Price $0.42 | Valuation $1.35
Paringa Resources (PNL) recently released a Bankable Feasibility Study (BFS) for Poplar Grove, the first thermal coal mine to be developed in the Buck Creek Complex, West Kentucky. The BFS confirmed a low capex starter mine (~US$40m) with 25%-33% operating margins against an established sales contract with regional utilities LG&E and KU. Poplar Grove is designed to produce 1.8Mt of clean coal from the high quality WK No. 9 seam, but has potential to double production with the recently defined WK No 11 seam. The larger Cypress mine, adjacent to Poplar Grove, is slated to commence production in 2021 and will ramp up to 3.9Mt production.
Recent Contacts & Presentations:
Antipa Minerals Ltd (AZY), Noxopharm Limited (NOX), Botanix Pharmaceuticals Ltd (BOT), Emerald Resources NL (EMR), Metals of Africa Ltd (MTA), Stavely Minerals Ltd (SVY), Australis Oil & Gas Ltd (ATS), Davenport Resources Ltd (DAV), TFS Corporation Limited (TFC), Emmerson Resources Ltd (ERM), Syntonic Ltd (SYT), MZI Resources Ltd (MZI), Resolute Mining Ltd (RSG), Orthocell Ltd (OCC), Capricorn Metals Ltd (CMM), Eve Investments Ltd (EVE) , Australian Mines Ltd (AUZ), Heron Resources Ltd (HRR), St George Mining Ltd (SGQ), Threat Protect Australia Ltd (TPS), Paringa Resources Ltd (PNL), The Gruden Group Ltd (GGL), Primary Gold Ltd (PGO), Vault Intelligence Ltd (VLT)