Market Update & Important Indicators
Wall Street stocks have finished little changed as investors eyed key Brussels talks on Greece's demands to renegotiate its international bailout as the risk of a debt default looms. The Dow Jones Industrial Average was at 17,862, down 7 points, and the broad-based S&P 500 was steady at 2,069, while the tech-rich Nasdaq Composite Index added 14 point to reach 4,801.Eurozone finance ministers heading into an emergency meeting said they were ready to listen to Greece's plans for debt relief, but insisted that Athens must complete austerity reforms. Investors were hesitant to make big bets with the Greece talks ongoing, and on a day with no major US economic releases. London's benchmark FTSE-100 index ended the day down 0.16 per cent to 6,818.17 points, in Paris the CAC 40 dropped 0.35 per cent to 4,679.38 points, while Frankfurt's DAX 30 index edged down 0.02 per cent to 10,752.11 points.
Asian equity markets mostly rose as hopes grow that Greece will be able to convince its European creditors to renegotiate the terms of its bailout. Seoul rose 0.51 per cent, or 9.84 points, to 1,945.70, and Shanghai added 0.51 per cent, or 16.11 points, to end at 3,157.70. Singapore, Bangkok, Jakarta and Taipei all gained. Hong Kong closed 0.87 per cent, or 213.08 points, down at 24,315.02. Tokyo was closed for a public holiday.
Base metals on the LME finished mostly lower, although copper and zinc showed marginal gains. Gold lost 1.1% to US$1,219.7/oz and WTI crude fell 2.4% to US$48.84/bbl. The AUD is buying US40.771.
In This Issue
ABM Resources (ABU)
ABM Resources (ABU) is a high grade gold developer / explorer with assets in Western Australia and Northern Territory. Following a deal with Tanami Gold (TAM) in July CY14 to lease the Coyote plant and equipment (see page 4), the Company is fast tracking production (capex <A$5m) of the Old Pirate deposit with first gold anticipated mid CY15. Argonaut’s site visit confirmed Old Pirate is a large system with high grades and significant exploration potential. Unravelling the mischievous geology through open-pit production and ongoing drilling would underpin a sustainable, high margin operation. Challenges include sampling and estimation, dilution and grade control of narrow vein.
OZ Minerals (OZL)
OZ Minerals (OZL) released full year financial results with $831m revenue and an underlying NPAT of 30.3m before accounting adjustments relating to the Company’s Toro Energy (TOE) investment (statutory NPAT 48.5). This was higher than Argonaut’s forecast of $15m driven by lower COGS. The Company’s cash balance increased by $64m in H2 to $218.5m.
Recent Contacts & Presentations
Northern Star (NST), Doray Minerals (DRM), Troy Resources (TRY), Gold Road Resources (GOR), Saracen Mineral Holdings Limited (SAR), Red 5 (RED), Resolute Mining Limited (RSG), RTG Mining (RTG), Otto Energy Limited (OEL), Peninsula Energy Limited (PEN), Sandfire Resources NL (SFR), Atrum Coal (ATU), Empired (EPD), DTI Group (DTI), Austal (ASB), TFS Corporation (TFC), Pioneer Credit (PNC), IMF Bentham (IMF), Sino Gas & Energy (SEH), Orbital Corporation (OEC)