Market Update & Important Indicators:
U.S. stocks climbed Tuesday, bolstered by a flurry of upbeat earnings results. Company earnings are expected to drive much of the trading action this week, analysts say, with roughly 40% of S&P 500 firms scheduled to post quarterly results through Friday. Solid reports should help major indexes keep climbing, investors say, even as many have expressed concerns about stocks looking pricey relative to their historical valuations. The Dow Jones Industrial Average finished up 0.5% after three consecutive sessions of declines. The S&P 500 rose 0.3%, and the Nasdaq Composite added less than 0.1%. Stock indexes also received a boost from energy shares, which jumped 1.5% in the S&P 500, buoyed by a climb in oil prices. Energy stocks, the worst-performing sector in the S&P 500 this year, have come under pressure this year as oil prices have slid. The U.S. gold price dropped overnight, shedding 0.4% to finish at 1,249.60 US$/oz.
European stocks closed higher, with bank stocks gaining ground as investors assessed upbeat developments from Germany and Greece. The Stoxx Europe 600 tacked on 0.4% to finish at 380.77, rebounding from a 0.2% fall on Monday. In Frankfurt, the DAX 30 was higher by 0.5% at 12,264.31, holding to gains after the closely watched Ifo Institute described German companies as "euphoric." The widely watched Ifo index of business sentiment in Europe's largest economy surged to a record high of 116.0 in July. Meanwhile, Greece is back in the international bond markets following a three-year hiatus, with a five-year bond sale starting Tuesday. Greece's Athex Composite was down 0.7% at 843.05 on Tuesday, but has jumped 31% this year.
Most Asian stock indexes finished higher Tuesday, though China lagged sagged in the afternoon to underperform and Korea's Kospi ended its eight-straight sessions of record closing highs with a thud. It fell 0.5% amid a 1.7% drop in Samsung. In general, many investors sat on the sidelines ahead of what's expected to be a no-news Federal Open Market Committee meeting in the U.S. Still, the Hang Seng rose 5 points to allow it to notch an 11th gain in 12 sessions. Samsung notwithstanding, the technology sector was also a winner in Asia. Indexes in Japan and Taiwan closed little changed.
Australian shares bounced back from losses the previous two sessions, as the major banks and mining companies joined broad gains. Despite fading slightly in the final minutes, the S&P/ASX 200 ended up 0.7% at 5726.6 on Tuesday. The index had slipped toward the psychologically important 5600 mark several times recently, only to rebound. The Big Four banks were each higher, building on gains from the early part of last week after the industry regulator unveiled fresh capital targets that the lenders each said they were well placed to meet by the 2020 deadline. Chinese iron-ore futures jumped Tuesday. Base metals were also mostly higher overnight.
The London Metal Exchange's three-month copper contract gained 3.29% overnight to close at $6,225/t. All other base metals finished higher. Lead prices rose 2.7% to 2,295/t, nickel prices rose 2.4% to 9,955/t, tin prices rose 0.6% to 20,500/t, zinc prices rose 1.8% to 2,834/t, whilst aluminium prices rose 1.0% to 1,909/t.
In this Issue:
Regis Resources (RRL) | Production goes into orbit mining satellites
Market Cap $1900m | Current Price $3.86
Regis Resources (RRL) released stand-out quarterly production of 90,428oz (+14%, Q-o-Q) which was above Argonaut’s expectations thanks to a strong uptick in milled ore and higher head grades due to the inclusion of higher grade Gloster and Erlistoun ores. Group costs decreased to A$870/oz (vs A$1,024oz -15% Q-o-Q) as production rebounded post-rain related delays in the March Q and strip ratio’s decreased. RRL generated operating cashflow of $74.2m (vs $57.8m, +30% Q-o-Q) with cash and bullion increasing $151.7m (+32% Q-o-Q). RRL finished the year with record annual production of 324koz @ AISC of $945/oz, at the upper end of the 300-330koz @ $980-$1,050/oz guidance. Maintain BUY, TP 4.10 (prior $3.81).
Recent Contacts & Presentations:
Orbital Corporation Ltd (OEC), 4Ds Memory Ltd (4DS), Kin Mining NL (KIN), Pharmaust Limited (PAA), Botanix Pharmaceuticals Ltd (BOT), Dimerix Ltd (DXB), Metro Mining Ltd (MMI), Paringa Resources Ltd (PNL), Independence Group NL (IGO), MZI Resources Ltd (MZI), Transerv Energy Ltd (TSV), Emmerson Resources Ltd (ERM), Antipa Minerals Ltd (AZY), Echo Resources Ltd (EAR), Sovereign Metals Ltd (SVM), Calidus Resources Ltd (CAI), Great Boulder Resources Ltd (GBR), Finders Resources Ltd (FND), Bionomics Ltd (BNO), Threat Protect Australia Ltd (TPS), Ramelius Resources Ltd (RMS), Zenith Energy Ltd (ZEN), Blackham Resources Ltd (BLK)
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