Morning Notes

12/07/2017 Argonaut Morning Note

Market Update & Important Indicators:

U.S. stocks recovered intraday after a brief bout of selling sent the Dow Jones Industrial Average down more than 100 points. Stocks had dropped after Donald Trump Jr. released emails about meeting with a Russian lawyer to discuss allegedly incriminating information about Hillary Clinton, traders said. But by afternoon, stocks retraced much of their losses - leaving the Dow industrials on track to close slightly higher for the day. Shares of energy companies rose with oil prices, supporting major stock indexes. The Dow Jones Industrial Average added 1 point to finish at 21409, after losing roughly 129 points earlier in the session. The S&P 500 fell less than 0.1% and the Nasdaq Composite rose 0.3%. Energy stocks rose 0.7% in the S&P 500, leading gains. U.S. crude oil rose 1.4% to $45.03 a barrel. The U.S. gold price once again rose overnight, jumping 0.3% to finish at 1,217.20 US$/oz.

European stocks finished with losses, as investors took a cautious approach ahead of Federal Reserve Chairwoman Janet Yellen's testimony to Congress. The Stoxx Europe 600 index fell 0.7% to close at 379.15, erasing Monday's 0.4% advance and then some. The pan-European index traded with a gain of as much as 0.3% just after the open, but the optimism quickly fizzled. After the latest Fed minutes out last week, investors are still expecting the U.S. central bank to hike rates at least one more time this year, but they are waiting on clues as to the timing of the next tightening move.

Asian markets mostly climbed in low-volume trading as technology companies echoed gains in U.S. tech stocks on Monday. Taiwan's Taiex index was up 1.2%. In Japan, the benchmark Nikkei Stock Average gained 0.6% as a weaker yen, which benefits export-oriented stocks, also provided support. The dollar was last up 0.3% against the yen. Hong Kong's Hang Seng Index gained 1.5%. Malaysian stocks ended lower, tracking a broadly subdued Southeast Asian market ahead of a testimony from key Federal Reserve officials this week. Market sentiment was negative with losers outpacing gainers 715 to 198, while around one quarter of all the stocks listed on the local bourse was untraded. The FBM KLCI Index fell 0.1% to 1,755.03.

Australian shares recovered from a subdued start to close higher for the second session in a row, aided by fresh signs that local business conditions are improving. The S&P/ASX 200 index ended up 0.1% or 4.5 points at 5728.9, led by gains in the resources sector. Equity bulls drew confidence from the latest NAB survey which put business conditions in Australia at multi-year highs in June. The data bolstered the view that the economy remains solid and job creation will retain some pep. Also, monthly data on housing finance signalled regulators are achieving success with measures to cool the real-estate market. Lending to investors, a key target of clamps announced at the end of March, fell for a second month in May.

The London Metal Exchange's three-month copper contract rose 0.88% overnight to close at $5,875/t. The other base metals finished mixed. Nickel prices rose 1.4% to 9,087/t, whilst zinc prices rose 1.5% to 2,820/t. Falling for the day, lead prices shed 0.8% to 2,285/t, whilst tin prices dropped 0.6% to 19,880/t. Aluminium prices finished flat for the day at 1,883/t.

In this Issue:

Northern Minerals (NTU) | Breaking ground at Browns Range | SPEC BUY
Market Cap $77m | Current Price $0.11

Northern Minerals (NTU) has commenced earthworks at its 100% owned Browns Range heavy rare earth projects in Western Australia. The project is commencing at a pilot plant scale to test mining methodologies, ore variability, the process flowsheet and logistical / market dynamics. Capex of $39m is fully funded through a combination of equity, Research and Development (R&D) financing, debt, offtake pre-payments and deferred payment agreements. Browns Range is a highly strategic project given its unique Dysprosium (Dy) rich heavy rare earth oxide (HREO) mineral assemblage and low sovereign risk jurisdiction. Dy has 6-12%pa forecast demand growth out to 2025, largely driven by its application in high strength magnets used in electric vehicle (EVs) motors.

Recent Contacts & Presentations:

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), Top End Minerals Ltd (TND), Northern Star Resources Ltd (NST), Xanadu Mines Ltd (XAM)

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