Market Update & Important Indicators:
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite climbed toward a trifecta of closing records Monday as commodity prices gained. Stocks have rallied since the U.S. presidential election, with major indexes advancing two weeks in a row through Friday. Investors have piled into banks, health-care stocks and industrials on bets that President-elect Donald Trump would loosen regulation and boost infrastructure spending. At the same time, they've pulled back from Treasury’s and stock-market bond proxies, which are less attractive to investors when interest rates rise. Financials led much of the charge, accounting for 73% of the S&P 500's postelection gains through Friday, according to S&P Dow Jones Indices. On Monday, stocks rose broadly, with all 11 S&P 500 sectors on track to end with gains. The Russell 2000 index of small-capitalization stocks climbed past its previous closing record in intraday trading Monday and was on pace for its 12th consecutive session of gains.
In European markets, Europe's main equity benchmark finished slightly higher Monday, as gains for energy and mining stocks offset drops by Italian banks. The Stoxx Europe 600 rose 0.3% to end at 340.23.
Asian stocks finished mostly higher Monday, even as a continued currency selloff showed traders continued to pull money from emerging Asia. Japan's Nikkei closed up 0.8%, the Shanghai Composite Index rose 0.8%, Hong Kong's Hang Seng Index gained 0.1%, but Korea's Kospi fell 0.4%. Japan's exports fell 10.3% in October from a year earlier, figures from the Ministry of Finance showed. The reading came in worse than the 9.4% drop economists had expected. Japan stocks were supported Monday by continued yen weakness, with the USD/JPY pair trading just below the 111 level. Meanwhile, the People's Bank of China set the yuan 0.3% weaker against the dollar Monday, the 12th straight fixing lower. Hong Kong stocks were resilient Monday thanks to expectations that the Shenzhen-Hong Kong trading link will launch any day now, channelling more cash from China into Hong Kong. The Shanghai market hit a fresh 10-month high Monday, buoyed by hopes for more investment by insurers, while brokerages rose on expectations of increased trading volumes with the opening of the Shenzhen-Hong Kong link.
Australian shares fell Monday, as investors began to question the legs of the rally on global equity markets in the wake of Donald Trump's victory in the U.S. presidential election. The S&P/ASX 200 index closed down 0.2% or 8.1 points at 5351.3, with building- materials supplier Boral in focus after placing a US$1.86 billion bet on the U.S. construction market.
Copper for three-month delivery rose 2.5% at $5,557/t on the London Metal Exchange. Meanwhile, all other base metals rose. Aluminium prices rose 1.5% to $1,733/t, nickel rose 5.1% to $11,354/t, zinc rose 1.6% to $2,563/t, tin rose 3.2% to $21,080/t and lead rose 1.5% to $2,158/t.
In this Issue:
Dacian Gold (DCN) | Feasibility and Expansion | BUY
Market Cap $416m | Current Price $3.07 | Target Price $4.30
DCN has released a positive result for their Mt Morgans Gold Project (MMGP) Feasibility Study (FS) outlining a longer mine life, a smoother production profile and in-line process plant capex when compared to the 2015 scoping study (SS). The FS doesn’t include a significant chunk of inferred resources that weren’t able to be classifiable as reserves presenting further upside. As a result, DCN has embarked on an Expansion PFS (EPFS) which will seek to better define an additional 446koz of inferred resources in the mine plan from the Allanson’s and Beresford deposits. It’s an efficient strategy since these resources are adjacent to the mineralised zones and their proximity to existing development designs will make it a simple process of resource definition drilling to bring these resources into the mine plan. DCN will now move to complete financing, regulatory approvals and construction tender decisions with first gold due in
Recent Contacts & Presentations:
Dacian Gold (DCN), Orocobre Ltd (ORE), Alchemy Resources Ltd (ALY), Acacia Coal Ltd (AJC), Minotaur Exploration Ltd (MEP), Northern Minerals Ltd (NTU), Walkabout Resources Ltd (WKT), 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)