Morning Notes

10/04/2018 Argonaut Morning Note

Market Update & Important Indicators:

Stocks pivoted higher Monday as policy makers appeared to dial back the tough tone on trade that rocked markets at the end of last week. The Nasdaq Composite gained 0.51%, as technology stocks staged a rebound. The Dow Jones Industrial Average and S&P 500 added 0.2% and 0.3% respectively. Monday's brighter tone came after Trump administration officials on Sunday softened some of the rhetoric after threatening to impose new tariffs on China, noting the penalties aren't imminent and there is time to work out a deal. All three major indexes fell more than 2% Friday as investors worried that escalating tariffs between the U.S. and China could lead to policies that threaten global economic growth. The tech-heavy Nasdaq Composite is on pace for its 30th move of at least 1% in either direction this year, the most through April 9 since 2009, according to The Wall Street Journal's Market Data Group. The U.S. gold price rose slightly overnight, jumping 0.2% to finish at 1,335.70 US$/oz.

The Stoxx Europe 600 index closed up 0.1% at 375.30 as concerns about trade tensions between the U.S. and China eased after U.S. President Donald Trump appeared to soften his position. Germany's DAX ended up 0.17%, the U.K.'s FTSE 100 up 0.15% and France's CAC 40 up 0.1%. Peripheral stocks outperformed, with Italy's FTSE MIB up 0.5% and Spain's IBEX 35 up 0.6%.

Asian stocks bounced back Monday after mounting trade tensions between the U.S. and China triggered steep declines at the end of last week. Hong Kong's Hang Seng Index, which had fallen 5.3% during a three-week losing streak, was up 1.3%, led by consumer-focused, industrials and technology companies. Hong Kong-listed Rusal plunged 50%, however, as the aluminium company was among the firms hit Friday by fresh U.S. sanctions against Russian individuals and entities. Japan's Nikkei rose 0.5% and South Korea's Kospi rose 0.6% as Samsung Electronics climbed 1.7%. Investors also appeared to be encouraged by news that North Korea has confirmed its readiness to discuss denuclearization of the Korean Peninsula with the U.S.

Following a sluggish start, Australian shares held to gains through the afternoon as they joined markets across Asia-Pacific in shrugging off late-week global trade anxiety. With only the energy sector in negative territory after oil's 2% slide on Friday, broad gains lifted the S&P/ASX 200 by 0.35% to settle a 5808.7, a 2-week best. Among notable moves, Atlas Iron bounced 42%--erasing most of this year's slump--on a takeover deal with Mineral Resources. It slid 6.9%.

The London Metal Exchange’s 3-month copper contract rose on Monday night, rising 0.9% at 6,830/t. The other base metals were mixed overnight. Tin prices rose 0.6% to 21,220/t, whilst nickel prices jumped 1.3% to 13,390/t. The biggest LME base metal gainer overnight was aluminium prices which soared 6.6% to finish at 2,155/t, the highest level it has been since March 2018. The aluminium price has continued to rise since last Friday after the announcement that the US had sanctioned and frozen the assets of Oleg Deripaska and UC Rusal. Declining overnight was the lead price, which shed 0.3% to 2,385/t, whilst zinc prices fell 0.9% to 3,206/t.

In this issue:

Salt Lake Potash (SO4) | Offtake MOU with Mitsubishi | SPEC BUY
Market Cap $98m | Current Price $0.565

SO4 has executed an important MOU with Mitsubishi which sets out the basis for the first Offtake Agreement for the Goldfields Salt Lake Project (GSLP). Mitsubishi is one of the world’s largest trading houses, and we believe the interest evident from an MOU with a blue-chip partner endorses the significant market for both the product and the potential of the GSLP.

Recent Contacts & Presentations:

Pantoro Limited (PNR), Alt Resources Ltd (ARS), Coziron Resources Ltd (CZR), ABM Resources Ltd (ABU), Vital Metals Ltd (VML), Todd River Resources Ltd (TRT), Pacific Energy Ltd (PEA), Carnarvon Petroleum Ltd (CVN), Australian Mines Ltd (AUZ), Australian Finance Group (AFG), Paladin Energy Ltd (PDN), Cooper Energy Ltd (COE), Medibio Ltd (MEB), Botanix Pharmaceuticals Ltd (BOT), Salt Lake Potash Ltd (SO4), Golden Mile Resources Ltd (G88), NTM Gold Ltd (NTM), Ausmex Mining Group Ltd (AMG), Matrix C&E Ltd (MCE), Austal Ltd (ASB), Decmil Group Ltd (DCG), Ventnor Resources Ltd, Ausdrill Ltd (ASL), Alice Queen Ltd (AQX), PNX Metals Ltd (PNX), Alliance Resources Ltd (AGS)

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