Mining Review Market Update 27th March 2022
Another week of chaos in the world making markets very hard to predict.
Nickel continues to rise again as longs have a trapped short, the Chinese ‘Big Shot’ cornered, and sense some easy blood.
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Calidus Resources project panoramic vista
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City Investors Circle Mining Review Market Update 27th March 2022
Another week of chaos in the world making markets very hard to predict. Russian sanctions are increasing, and now some in the west are starting to realise that this will also hurt our economies in the short term too, and inflation is a stone cold certainty.
The main beneficiary seems to be the USA, with Europe now agreeing to buy a massive amount of LPG at a price much higher then the equivalent amount of gas would have cost purchased from Russia.
Nickel continues to rise again as longs have a trapped short, the Chinese ‘Big Shot’ cornered, and sense some easy blood. Everyone knows the shorter has to close out his huge nickel short position, so they are driving the price up against him. JP Morgan are one of the banks on the hook for this trade.
The LME wound back nickel trades recently, and that will likely lead to legal action against the exchange in the future.
Mining news in general – UK listed companies in the news this week
Beowulf Mining received some good news, finally, from the Swedish government, with the award of the Kallak North Iron Ore Exploitation Concession, see here.
Ariana Resources announced an impressive agreement with Newmont for their projects within the Tethyan Gold Belt of Eastern Europe, covering Serbia, North Macedonia, Kosovo, Greece and other Balkan countries, for an initial $2.5 million investment, see here.
Petropavlosk, the UK listed gold miner working in Russia had some bad news on Friday when the UK government sanctioned their bank in Russia, which provides their revolving credit facility, and they deliver their gold to. It is unclear whether this situation can be worked through, see here.
If not, Petropavlosk will be quickly in default of its loan terms to their Russian bank, and one wonders what will happen to their Russian mine in that event?
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Companies from our watchlist in the news this week.
Latrobe Magnesium Project Update
Calidus Resources reported Strong results from their drilling at Blue Spec, WA.
Silver Tiger Intersects 2,239 g/t Ag Eq Over 9.2 m
Los Cerros Reported Quinchia MRE of 2.6m Oz Gold
Calidus Resources New Presentation and Results
Orla Mining Commenced Near Mine Exploration
Los Cerros Ltd. – Trading Halt
Calidus Resources’ news from their Blue Spec property (70%) is significant as they look to add extra resources to increase production from 100,000 Oz Au per annum to around 130,000 Oz Au PA.
These early stage results are from a previously undrilled and untested area east of Blue Spec.
Silver Tiger Metals continued to report very impressive drill results from their El Tigre historical producing mine project, as they expand out following the prolific Sooy Vein, which was lost by the previous miners.
9.2 meters grading 2,239.0 g/t silver equivalent from 36.6 m to 45.8 m is a very nice intercept, and at very shallow depth. I cannot wait for an updated resource calculation, as I feel it will be the catalyst for a rerate in the share price.
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Market Data (US Dollars)
Precious metals
| Gold | 1968 | +2% |
| Silver | 25.53 | +3% |
| Palladium | 2268 | -9% |
| Platinum | 1000 | -3% |
| Rhodium | 17800 | -12% |
Base metals
| Copper | 4.73 | +3% |
| Nickel * | 16.87 * | -12% * |
| Zinc | 1.88 | +9% |
| Tin | 19.24 | +1% |
* I’m not sure the nickel price quoted here is accurate, it was taken from Kitco and another source, but with the LME and Shanghai recording large gains since trading resumed, I’m not sure the figure quoted is correct.
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Energy Metals
| Cobalt | 37.31 | +1% |
| Manganese | 4.34 | +10% |
| Lithium | 74252 | 0% |
| Uranium | 57.5 | +2% |
Uranium is slowly climbing as supplies from Russia and Kazakhstan may be in some doubt for the near future .
Bulk commodities
| Iron Ore | 149.1 | 0% |
| Coking Coal | 505 | -19% |
| Magnesium | 6519 | 0% |
| Lumber | 1009 | -16% |
Coking coal was down on decreased iron ore production in China as the industrial regions are locked down, due to covid restrictions.
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Metal ETF’s
| GDX | 38.72 | +4% |
| GDXJ | 48.26 | +3% |
| Sil | 37.23 | +2% |
| SILJ | 14.62 | +3% |
| GOEX | 33.48 | +2% |
| GLD | 182.38 | +2% |
| COPX | 46.47 | +6% |
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Miscellaneous indices
| Au / Ag Ratio | 76.23 | -1% |
| 10 yr T bond | 2.479 | +15% |
| US index (DXY) | 98.81 | +1% |
| HUI | 314.8 | +3% |
A huge leap in the 10 year Treasury note this week, after the FED indicated rates would rise more quickly than previously thought.