City Investors Circle Mining Review 29th Aug 2021
The market focus for gold this week was always going to be the Jackson’s Hole meeting, where “to taper or not to taper” was the question.
Well after all the excitement it was a damp squib, and the can was kicked down the road until September! Gold rose, and US stocks soared to new all time highs on the news.
Fiore Gold Pan Mine vista, Nevada, USA
.
.
City Investors Circle Mining Review 29th Aug 2021
The market focus for gold this week was always going to be the Jackson’s Hole meeting, where “to taper or not to taper” was the question.
Well after all the excitement it was a damp squib, and the can was kicked down the road until September! Gold rose, and US stocks soared to new all time highs on the news.
It was billed as the most significant decision of the year, and once gain they bottled it and the circus moves down the road another month. I always get nervous around October time, because most crashes have occurred in the autumn, so by postponing this decision to just before October isn’t a great sign.
.
Stocks we follow in the news this week
Fiore Gold – Announced $6 m in free cashflow in fiscal results for Q3 2021
Banyan Gold – Announced drill results including 110.7 m of 0.62 g/t gold at Aurmac.
Kootenay Silver – To spin out their Canadian assets into a newco, Kootenay Resources
Bardoc Gold – A new research report by Argonaut has been published
Boab Metals – The strategic Moonamang Road upgrade is nearing completion
.
General mining news
Centerra Gold, deprived of their mine by the Kyrgyzstan government have filed a motion seeking penalties of US$1 million a day against the government whilst they are deprived of their Kumtor Gold Mine.
Workers at BHP’s Cerro Colorado copper mine in Chile are threatening strike action due to a poor wage increase offer, which they are blaming on water supply problems for the mine, causing production costs to rise.
.
Market data
.
Precious metals
| Gold | 1817 | _2% |
| Silver | 23.98 | +4% |
| Palladium | 2348 | +3% |
| Platinum | 1006 | +1% |
| Rhodium | 16900 | -6% |
Gold and silver rose on the back of the postponing of the FED tapering decision for another month.
.
.
Base Metals
| Copper | 4.24 | +4% |
| Nickel | 8.56 | +2% |
| Zinc | 1.36 | +2% |
| Tin | 15.46 | +4% |
Copper is defying the Chinese government’s attempts to bring the price down so they are holding another auction of metals from their strategic reserve to try and curb price speculation. Tin continued its strong rise.
.
Energy Metals
| Cobalt | 22.73 | -2% |
| Manganese | 2.87 | +1% |
| Lithium | 16659 | +8% |
| Uranium | 33.25 | +9% |
Lithium rose again on supply fears after the news that Albemarle’s production may be constrained in Chile due to labour unrest and walkouts. Uranium rose strongly after the recent hiatus.
.
.
Bulk commodities
| Iron Ore | 154.4 | +17% |
| Coking Coal | 209 | +3% |
Iron ore rebounded strongly after recent falls, in ort due to Chinese government actions to prevent speculation in commodity prices.
Coking coal also performed strongly as the Chinese – Mongolian border is closed because of covid, some Chinese mines are suspended pending safety checks, and the import of coking coal from Australia is still banned.
.
Precious Metal ETF’s
| GDX | 32.61 | +6% |
| GDXJ | 43.08 | +9% |
| Sil | 40.2 | +7% |
| SILJ | 13.48 | +10% |
| GLD | 170.2 | +2% |
All positive this week, as one would expect after the strong finish to the week for precious metals, as a result of the non decision over tapering.
.
Miscellaneous data
| Au / Ag Ratio | 76.08 | -1% |
| 10 yr Tbond | 1.314 | +4% |
| US index (DXY) | 92.68 | -1% |
| HUI | 254.54 | +6% |
City Investors Circle Mining Review 29th Aug 2021 is complete.
Disclosure
At the time of writing the writer holds shares in Banyan Gold, Bardoc Gold, Boab Metals, and Fiore Gold, all bought in the market at the prevailing price on the day of purchase.
To read our full terms and conditions, please click HERE