Mining Review 13th November 2022
City Investors Circle weekly Mining Review reports healthy rises in gold and silver as the US dollar fell back as US bond yields fell. Base metal prices rose on the back of Chinese covid lockdown relaxations.
Calidus Resources and i-80 Gold reported exploration results, Ascot Resources, Colonial Coal, and Wesdome Gold Mines reported Q3 financial results.
Mining Review 13th November 2022
City Investors Circle weekly Mining Review reports healthy rises in gold and silver as the US dollar fell back as US bond yields fell, despite the FED remaining hawkish and intent on further rate rises.
Some market commentators see there being a straight choice between the FED continuing to raise interest rates, and crashing the economy, or pivoting and living with higher inflation.
Of the two, the Biden administration seems to be hell bent on the first option, which is a major concern for property prices, and car manufacturers, both sectors that rely on people borrowing to finance their purchases.
Car finance in the USA is already available for up to seven years, and borrowers can have multiple car loans running simultaneously, unlike the UK where the loan has to be paid off once the car is sold. With higher interest rates for new car loans, how much further out can US car manufacturers push the loan window I wonder?
Base metal prices rose on the back of Chinese covid lockdown rule relaxations, which had been anticipated, due to the damage they were doing to the Chinese economy.
It has been reported that the Chinese had been taking advantage of low copper prices to increase their warehouse stocks, but that’s not unusual as they have done that in the past whenever there has been price weakness. It clearly makes sense.
Mining stocks on our watchlist making news included Pure Gold Mining, which has been transferred to the TSX NEX Exchange, which is basically a parking place for failed companies, or “those that fall below the standards of a TSX listing”
Quite bizarrely, on the London AIM market, the price is rising!
Calidus Resources and i-80 Gold reported exploration results, Ascot Resources, Colonial Coal, and Wesdome Gold Mines reported Q3 financial results, as results season is now in full swing.
I much prefer the Canadian quarterly reporting of results, as opposed to the AIM Market where results can actually be reported up to nine months later, and are therefore a poor guide to current performance.
News from our watchlist companies can be read in full by clicking the links below;
Week on week price changes
(US$ unless stated)
|Gold price in UK £||1499||+1.42%|
|Au / Ag Ratio||80.84||-2.71%|
|10 yr T bond (TNX)||3.819||-8.20%|
|2 yr T bond||4.32||-7.30%|
|US index (DXY)||106.42||-3.94%|
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