AM Heatmap : Broad Rally led by Mega and Mid caps 767 Risers to 343 Fallers
FTSE 100 in the lead this morning rallying+1 .3% following the FOMC meeting yesterday and building on both CPI stronger pound, and into the BOE meeting
risers outnumbered fallers in stocks by two to one areas of Green concentrated in Precious Metals Miners Oil & Gas and Banks REITs, travel and leisure
In the mega caps, Miners Banks and Retail leading as AAL adds 4%, Next 6.6% on results with 89 of the mega caps up on the day
FTSE 250 has 214 in the green to 34 in red in a broad rally centred around REITS, Funds and Brokerages
AIM still lagging but catching a bid with oilers and miners rallying as 173 rally to 138 fallers with 334 unch
0900 Miners on the Move
24 Miners, (11 precious metal miners ) on the move in the first hour led by Resolute +10%, with SRB, CHAR , FRES , HOS , PAF all adding 4% as gold and the other precious metals rally
CEY highlighted pre market sets up to breakout while HOC clears s resistance at 116p to breakout to new 52 week high
Premarket : Fireworks on FOMC- DXY pullback, S&P New ATH, Gold New ATH, Copper resumes North: FTSE 100 Futures +70 into a Big Green Day: BoE at Noon
There was fairly muted reaction to the UK’s cooler than expected CPI number yesterday, with an even split of risers to fallers to unch in UK markets. Home Builders, REITS, Retailers and Banks did swing to the green in response to the slightly lower inflation data . Markets stayed mainly in wait-and-see mode consolidating
it was the FOMC’s commitment to keeping to three rate cuts in 24 which has really ignited markets overnight with the FTSE 100 futures adding almost 70 points to clear 7800 and a new 2024 high assuming the cash opens at these levels
The dollar index did rally to the 104 level resistance line which I’ve highlighted in previous chart and they’re sold off on the back of a dovish FOMC - see chart.
The S&P500 closed at a new all-time-high
Gold has broken out to new all-time highs clearing the $2200 mark
Oil did pullback form the upper trendline around $87 which I have been targeting- chart
Copper has completed an orderly pullback to the 8 EMA and looks set to continue north, while the precious metals are rallying in response to a weaker dollar -chart
Strong day in green ahead : BoE rate decision at noon
Dollar sells on FOMC rate cuts
Copper bids off 8 EMA pullback
Oil pullback from top channel line around $87
Ones to Watch : PTAL, CEY , AVCT reversal play on news Catalyst
CEY
Chart set-sup for a move north with gold at ATHs and strong results with increased EBITDA and margins, lower AISC and big increases in FCF
HIGHLIGHTS
9.5 million hours worked at the Sukari Gold Mine ("Sukari") with zero lost time injuries ("LTI"). The Group lost time injury frequency rate ("LTIFR") of 0.08 was an 83% improvement on the 3-year trailing average. Total recordable injury frequency rate ("TRIFR") of 2.83, a 24% improvement on the 3-year trailing average.
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Scope 1 and 2 Greenhouse Gas Emissions "GHG" reduced by 7% since 2021 base year, driven primarily by the 21.5 million litre reduction in diesel consumption during the first full year of solar power generation.
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Gold production of 450,058 ounces ("oz"), a 2% increase on 2022, delivered in line with 2023 guidance.
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All-in sustaining costs ("AISC") of US$1,205/oz sold, a 14% improvement on 2022, beating 2023 guidance.
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Increased adjusted EBITDA by 25% to US$398 million, at a 45% margin, up from 40% in 2022.
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Annual capital expenditure ("capex") of US$204 million below guidance of US$272 million: due to cost savings, lower capitalisation of costs and changes to equipment rebuild schedules.
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Sukari cash contribution of US$121m, including US$45 million in cost recovery and US$112 million of profit share, net of US$36 million capex funded from corporate. Government profit share and royalties totalled US$139 million.
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Group free cash flow of US$49 million, up from -US$18 million in 2022.
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Robust balance sheet with cash and liquid assets of US$153 million, as at 31 December 2023, and total liquidity of US$303 million including the undrawn US$150 million sustainability-linked revolving credit facility.
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Final dividend of 2.0 US cents per share, equating to US$23 million, subject to approval at the annual general meeting on 21 May 2024. Total dividend for full year 2023 of 4.0 US cents per share or US$46 million.
