Strongbow Exploration (CVE:SBW) – CAD2.2m placement completed
Xtract Resources (LON:XTR) – £220k raise closed
European equities are range bound with financials posting gains on the back of the news that Italian government will recapitalise the troubled Monte dei Paschi di Siena with a new €20 bailout package.
• Gold prices as well as the US$ index is little changed this morning.
• Brent is trading lower on the back of reports showing US stockpiles climbed for the first time in five weeks.
• Iron ore futures are trading lower together with contracts for steel amid high raw material’s inventories and environmental checks weighing on steel output and demand.
Dow Jones Industrials -0.16% at 19,942
Nikkei 225 -0.09% at 19,428
HK Hang Seng -0.80% at 21,636
Shanghai Composite +0.07% at 3,140
FTSE 350 Mining -0.85% at 14,314 FTSE 350 +95% since 1st January
AIM Basic Resources -0.37% at 2,245 AIM Basic Resources +38% since 1st January
Economic News
US
Date Index Period Actual Est Previous
Monday Markit Services (Prelim) Dec (Prelim) 53.4 55.2 54.6
Markit Composite (Prelim) Dec (Prelim) 53.7 54.9
Wednesday Existing Home Sales Nov %yoy 0.7 -1.8 1.5
Thursday Durable Goods Orders (ex Transport) Nov (Prelim) %mom 0.2 0.8
Capital Goods Orders Nov (Prelim) %mom 0.4 0.2
Weekly Jobless Claims 257k 254k
Q3 GDP (Final Reading) %qoq (ann) 3.3 3.2
Q3 Core PCE (Final Reading) %qoq (ann) 1.7 1.7
PCE Nov %yoy 1.5 1.4
Core PCE Nov %yoy 1.7 1.7
Friday New Home Sales Nov %mom 2.1 -1.9
Source: Bloomberg
UK – Consumer confidence remained weak in Dec with outlook for the economy falling to the lowest level in nearly four years (except for a sharp decline in Jul on EU referendum vote).
• “Against a backdrop of Brexit negotiations, the decline in the value of sterling, and the prospect of higher inflation impacting purchasing power, we forecast that confidence will be tested by the storm and stress of the year to come,” GfK said.
• GfK Consumer Confidence: -7 v -8 in Nov and -8 forecast.
• Auto production hit the highest monthly rate in Nov since 1999 as weak pound attracts foreign demand.
• 169k cars have been produced last month, up 12.8%yoy.
• Total production in the first eleven months of the year reached 1.6m autos exceeding output for the whole of 2015.
• Production marked for overseas markets climbed 11.1%yoy while home market autos output was up 4.2%yoy.
• Around 78% of cars produced were exported.
Indonesia – The government will allow companies to continue with exporting concentrates past the Jan/17 as long as companies continue to pay export taxes and work on bringing local smelters online.
• Miners who currently operate under contracts of work must get a special mining license to continue exporting semi processed metals.
• The decision is subject to the President’s approval.
Currencies
US$1.0443/eur vs 1.0399/eur yesterday. Yen 117.64/$ vs 117.64/$. SAr 13.950/$ vs 14.008/$. $1.234/gbp vs $1.233/gbp.
0.722/aud vs 0.725/aud. CNY 6.947/$ vs 6.951/$.
Commodity News
Precious metals:
Gold US$1,132/oz vs US$1,138/oz yesterday
Gold ETFs 57.3moz vs 57.5moz yesterday
Platinum US$912/oz vs US$916/oz yesterday
Palladium US$655/oz vs US$664/oz yesterday
Silver US$15.91/oz vs US$16.05/oz yesterday
Base metals:
Copper US$ 5,466/t vs US$5,530/t yesterday
• Refined copper imports climbed 46%mom/-23%yoy to 277kt in Nov, according to the customs data released yesterday.
• Inbound shipments in the first 11 months of the year were little changed at 3.27mt (+0.4%yoy).
• However, falling local premiums point to a cooling down in demand, Bloomberg reports.
• The benchmark Yangshan premium, a measure of supply and demand in bonded warehouses in Shanghai, fell since late Oct.
Aluminium US$ 1,723/t vs US$1,724t yesterday
Nickel US$ 10,685/t vs US$10,955/t yesterday
Zinc US$ 2,574/t vs US$2,628/t yesterday
Lead US$ 2,152/t vs US$2,190/t yesterday
Tin US$ 20,855/t vs US$20,945/t yesterday
Energy:
Oil US$54.6/bbl vs US$55.8/bbl yesterday
Natural Gas US$3.578/mmbtu vs US$3.334/mmbtu yesterday
Uranium US$20.40/lb vs US$20.40/lb yesterday
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$73.8/t vs US$75.3/t
Chinese steel rebar 25mm US$505.4/t vs US$506.8/t
Thermal coal (1st year forward cif ARA) US$68.1/t vs US$67.5/t yesterday
Premium hard coking coal Aus fob US$249.4/t vs US$256.1/t
Other:
Tungsten - APT European prices $187-198/mtu vs $182-200/mtu
Company News
Strongbow Exploration (CVE:SBW) CAD0.14, Mkt Cap CAD7.5m – CAD2.2m placement completed
• The Company closed the third and final tranche of the private placement issuing 1.56m shares at CAD0.15 for gross proceeds of CAD0.2m.
• This brings the total issue to 14.9m shares at CAD0.15 for CAD2.2m.
• The issue includes same number of warrants granted at a price of CAD0.20 and exercisable for 24 months from the closing date of the financing.
• The funds will be used for “general working capital and for the advancement of the South Crofty tin project in Cornwall, UK”, the Company reported.
Xtract Resources (LON:XTR) 0.015p, Mkt Cap £2.7m – £220k raise closed
• Xtract completed a Company organised placing with private and institutional investors issuing 1,333.3m shares at 0.0165p for a total of £220k in gross proceeds.
• In addition, the Company issued 666.7m warrants with an exercise price of 0.02p and valid until 21 Dec/17.
• Mr Colin Bird, a Company’s Chairman, subscribed for 393.9m shares taking his interest in the Company to 483.6m shares or 2.5% of the enlarged share capital.
• The funds to be used “for general working capital purposes”.