Market Update & Important Indicators
U.S. stocks bounced around the flat line Tuesday, a day after optimism that Greece was nearing a bailout deal with its creditors propelled global markets higher. The moves came a day after a rally across global stock markets helped boost the Nasdaq Composite to a record close. Investors have been closely watching talks between Greece and its creditors amid concerns that without a bailout agreement, the country may default on its debt and possibly leave the eurozone. As negotiations have made some progress this week, investors have become more optimistic that this scenario, which potentially could roil financial markets across the region, will not occur. A report showed demand for big-ticket manufactured goods in the U.S. fell for the third time in four months, falling 1.8% in May from a month earlier. Economists expected a decline of 1%. Separately, sales of newly built homes rose 2.2% in May from a month earlier to 546,000, a seven-year high, the Commerce Department said Tuesday.
European stocks rose Tuesday, with investors betting Greece is closing in on a deal with its creditors. Germany's DAX climbed 1.0% after logging its biggest one-day rise in nearly three years on Monday. France's CAC-40 was also up 1.0%.
Stocks in China rebounded from their worst weekly selloff since 2008 on Tuesday, after Shanghai slid earlier in the day as investors who have borrowed heavily sold shares to meet loan requirements. The Shanghai Composite Index finished up 2.2% at 4576.49, recovering from a 4.8% fall earlier Tuesday. The volatility follows heavy declines in certain stocks, which triggered margin calls.
Copper futures closed significantly higher on the London Metal Exchange on Tuesday, with Chinese manufacturing data receiving a warm welcome from investors. Gold fell 0.6% to $1,179/oz. In the energy sector, Brent crude gained 0.1% to $64.54/bbl.
In This Issue
Dacian (DCN) | SPEC BUY
Dacian Gold’s (DCN) current drilling program at Westralia achieved early success with two high grade lodes intersected from a single drill hole (see below). This ambitious extensional program tests an area of ~1000m x 500m, similar to the footprint of the 850koz Westralia Resource. Given conducive geology and success to date, the campaign has the potential to deliver significant Resource upside (likely in the Inferred Category) in the order of ~300-500koz, which could translate to a Resource upgrade in H2 CY15. Mt Morgans is progressing towards development with the inventory recently expanded to 2.1Moz @ 2.6g/t. Both Westralia and Jupiter offer significant exploration upside. With further drilling, Argonaut envisages the Resource position to expand towards 3.0Moz and a Reserve position of ~1.0-1.5Moz. The project has the potential to become a >150koz producer, developed as a standalone or toll-treating operation. A comparison with the Frog’s Leg mine, which Evolution Mining (EVN) is acquiring, demonstrates Mt Morgans’ potential to attract corporate attention with further advancements. DCN is one of Argonaut’s preferred gold development stocks given exposure to AUD denominated costs, exploration upside and proven management.
Recent Contacts & Presentations
Northern Star (NST), Sandfire (SFR), Western Areas (WSA), Panoramic Resources (PAN), Regis (RRL), Kingsrose (KRM), Medusa (MML), Pacific Energy (PEA), Orbital (OEC), Peet (PPC), Alexium (AJX), Austal (ASB), Empired (EPD), Rewardle (RXH), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Energy (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), Pura Vida Energy NL (PVD), High Peak Royalties (HPR), Carnarvon Petroleum (CVR)