Vast Resources (LON:VAST) – Carlibaba drilling update
Toshiba’s new lithium ion battery promises 320km range on 6min charge
• Uses a new anode material that promises to allow an EV to travel 320km on a 6-minute ultra-rapid recharge - three times the range possible on that amount of charge with current batteries
• New anode material is a titanium niobium oxide that can provide twice the capacity of the anode used in current lithium-ion batteries
• gives both high energy density and ultra-rapid charging and the new anode is less likely to suffer from lithium metal deposition during fast charging
General Motors ramps up electrification adoption to maintain North American market share
• General Motors Co has made moves to diversify its future fleet with a ‘two-pronged approach to electrification’ focused on battery electric and hydrogen fuel cell technologies.
• GM announced plans to launch a minimum of 20 new all-electric vehicles by 2023, with two new offshoots of the Chevrolet Bolt EV in the next 18 months.
• GM aims to build strongly off existing sales of the Bolt (2,107 units in August), recording the second largest sales in North America.
Dow Jones Industrials +0.37% at 22,642
Nikkei 225 +0.06% at 20,627
HK Hang Seng +0.73% at 28,379
Shanghai Composite Closed for holidays 3,349
FTSE 350 Mining +0.18% at 17,066
AIM Basic Resources +0.84% at 2,467
Economics
US – Auto sales in September beat market estimates on the back of a strong demand for pickup trucks which surged 12%yoy.
• Sales came in at 118.57m units (annualised) marking the first ear on year increase in 2017 coming ahead of 17.4m units forecast.
• Auto sales may further pick up in the final quarter as people would be looking to replace cars damaged by the hurricanes last month.
Japan – Weaker growth in services weighed on the general business activity in September, according to Markit survey.
• Employment gains remained modest while output prices rose only slightly.
• Composite PMI: 51.7 v 51.9 in August.
Eurozone – Latest PMI reports show business activity in the region continued at a robust pace through Q3/17 with growth in new orders climbing at the fastest pace in over six years.
• Stronger economic growth saw labour market following suit with job growth recorded across Germany, France, Italy, Spain and Ireland.
• On inflation “the survey suggests that deflationary forces have abated fuelling confidence that reflationary pressures are becoming more engrained in the economy”, the report said.
• Composite PMI: 56.7 v 55.7 in August and 56.7 forecast.
Spain – Yields on government debt continued to climb rising more than 7bp to 1.790% this morning on the back of deepening political tensions over the Catalan independence.
• As investors rebalanced debt portfolios in favour of a safe haven German bonds the spread between Spanish and German sovereign bond yields expanded to 135bp.
• Financial equities are leading losses in the Spain’s Ibex 35.
• Felipe VI has recently criticised the Catalan government for the independence campaign reiterating royal family commitment “to the unity and permanence of Spain”.
UK – In contrast to positive Eurozone PMI data, UK numbers show subdued growth outlook across manufacturing, construction and services sectors, Markit reports.
• New orders across all three sectors dropped to the lowest in 13 months while business optimism slipped lower.
• On inflation, “higher costs… led to the largest monthly rise in average prices charged for goods and services since April, meaning consumer price inflation could rise above 3% in coming months”.
• Services PMI: 53.6 v 53.2 in August and 53.2 forecast.
• Manufacturing PMI (released on Monday): 55.9 v 56.7 in August and 56.2 forecast.
• Composite PMI: 54.1 v 54.0 in August and 53.8 forecast.
Currencies
US$1.1753/eur vs 1.1736/eur yesterday. Yen 112.55/$ vs 113.08/$. SAr 13.584/$ vs 13.679/$. $1.327/gbp vs $1.325/gbp.
0.785/aud vs 0.781/aud. CNY 6.653/$ vs 6.653/$.
Commodity News
Precious metals:
Gold US$1,276/oz vs US$1,271/oz yesterday
• The dollar index fell during subdued Asian attention during the Chinese national holiday, resulting in a modest gain in bullion prices from its 7-week low during yesterday’s sessions.
• The dollar retreated from its 1 ½ month high against the market basket currencies over speculations of U.S. President Donald Trump’s favoured choice for the new Fed chair. The released list of candidates, including the two leading hawkish choices Kevin Warsh and Fed Gov. Jerome Powell, look to replace Janet Yellen.
• Positive market sentiment builds towards a strengthening dollar with the proposed interest rate rise at the end of the year.
• Initial exploration work has kicked off at the Greatland Panorama project in the Pilbara region of Australia - the group has identified around twenty gold anomalies across the project area and five cobalt targets
• All gold and cobalt targets will be subject to field reconnaissance during the coming weeks
Gold ETFs 69.1moz vs US$69.2moz yesterday
Platinum US$915/oz vs US$913/oz yesterday
Palladium US$921/oz vs US$915/oz yesterday
Silver US$16.76/oz vs US$16.60/oz yesterday
Base metals:
Copper US$ 6,492/t vs US$6,505/t yesterday
• Price of copper moved higher on Tuesday on news of further tension between Indonesia and Freeport-McMoran, the US miner that operates the giant Grasberg mine
• Reports said audit agency found that Freeport failed to pay almost $450m of royalties – had previously divested 51% stake to local interests in return for full operational control plus fiscal and legal guarantees
• If deal cannot be reached could threaten future supplies from Grasberg and tighten the copper market
Aluminium US$ 2,145/t vs US$2,118/t yesterday
Nickel US$ 10,665/t vs US$10,675/t yesterday
• The break in the steady dollar rising has given support to broad base metal price recovery.
• The significant rally in nickel since July may expect wavering demand as environmental-related capacity closures are set to curb production during the winter months. Across 28 key provinces in China, steelmakers are commencing capacity cuts to help alleviate air particulate risks during the coal-fire heating months.
• Shandong Xinhai Technology, China’s largest nickel pig iron-only producer, have received orders to halve its production (equivalent to 200-250 Kt) from November 15 in an effort to reduce its impact on the countries growing pollution levels.
Zinc US$ 3,275/t vs US$3,249/t yesterday
• Zinc stocks continue to drift lower, declining a net 1,025 tonnes on Tuesday, to maintain metal prices. Despite the outlook remaining bullish, supply downside risk is growing with potential off-market stocks returning to the open market, Glencore’s waning mine capacity and additional ramp-up production from mine suppliers hoping to capitalise on positive prices.
• North American production has been hampered by striking action at the country’s second-largest zinc processing plant. Workers at the Noranda Income Fund owned plant have rejected a wage and pension offer in the latest round of negotiations.
• Glencore committed a further stake, worth at least $351 million, in Peru’s largest zinc miner, Volcan Compania Minera, amid global supply concerns.
Lead US$ 2,575/t vs US$2,526/t yesterday
Tin US$ 20,770/t vs US$20,700/t yesterday
Energy:
Oil US$55.6/bbl vs US$56.2/bbl yesterday
Natural Gas US$2.913/mmbtu vs US$2.914/mmbtu yesterday
Uranium US$20.45/lb vs US$20.25/lb yesterday
Lithium
• Bren-Tronics Inc, energy solutions and battery manufacturer, is the latest among technology companies to push mass production of lithium-ion batteries following a $6.2 million contract with the US Army.
• The conventional lead-acid 6T battery solution has use in approximately 95% of Army tactical ground-vehicle platforms, where the lithium-ion replacements represent a significant step up in power with half the weight.
• The company will begin fine-tuning its high-volume manufacturing line to produce 2,000 batteries per month for inclusion in vehicle starting, auxiliary power, silent watch, ground station power and directed-energy applications.
Bulk:
Iron ore 62% Fe spot (cfr Tianjin) US$61.9/t vs US$61.6/t
Chinese steel rebar 25mm US$621.2/t vs US$621.2/t
Thermal coal (1st year forward cif ARA) US$80.5/t vs US$80.0/t
Premium hard coking coal Aus fob US$188.0/t vs US$188.0/t
Other:
Tungsten APT European US$290-305/mtu vs US$310-335/mtu
Company News
Vast Resources (LON:VAST) 0.3p, Mkt Cap £14.8m – Carlibaba drilling update
• The Company released results of the first 1,000m in nine holes of the 2,200m drilling programme at the Carlibaba target located next to the Manaila polymetallic mine in Romania.
• Selected intersections include:
• 3.00m @ 2.93% copper ('Cu'); 0.88% lead ('Pb'); 1.95% zinc ('Zn'); 0.47g/t gold ('Au') and 93.33g/t silver ('Ag')
• 5.90m @ 1.97% Cu; 0.30% Pb; 0.71% Zn; 0.62g/t Au and 26.29g/t Ag
• 4.50m @ 1.17% Cu; 0.08% Pb; 0.21% Zn; 0.18g/t Au and 9.98g/t Ag
• While the Company does not specify at what depth those high grade intersections have been recorded, the table with results from nine holes included in the announcement show >1% Cu intersections found at 100-150m depths.
• The drilling programme is reported to be confirming the mineralised zones and geological structures as previously modelled.
• The mineralisation show moderate grades at surface and seem to be thinning down dip with grades improving at depth.
• The remainder 1,200m of drilling is in progress historic results and the extension of the mineralisation at depth.
• Upon completion of drilling and using available significant historical data, the Company plans to prepare a JORC compliant mineral resource for Manaila.