Mining Review Sunday Update 15th May 2022

Mining Review Sunday Update 15th May 2022

A truly awful week for investors in mining stocks and precious metals, as the strong US dollar pushed down the price of gold, silver, stocks, and bonds.

Chinese copper stocks are low, but the price of copper continues to fall.  […] 

 

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Eloro Resources

Eloro Resources – Iska Iska project view.

 

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City Investors Circle Mining Review Sunday Update 15th May 2022

A truly awful week for investors in mining stocks and precious metals, as the strong US dollar pushed down the price of gold, silver, stocks, and bonds.

Chinese copper stocks are low, but the price of copper continues to fall. The price of nickel is also falling despite the Chinese ‘Big Shot’ only managing to unravel half of his short position so far.

 

Commodity prices falling

Firstly we have to remember that the US dollar is extremely high at the moment, a multi year high, so in fact some commodity prices will not be falling so much, if at all, in local currencies.

Last month for example, the price of gold fell in US dollar terms, but ROSE in UK £ terms, due to the rise of the dollar versus the £.

Even so the some of the falls in commodity prices over the last week were breathtaking, Tin -16.9%, Iron ore -11%, zinc -11%, nickel -8.6%, copper – 5.54%, and remember, these are WEEKLY price movements!

As well as the strong US dollar there are some economic concerns, the principal one being the effects of the covid lockdowns in various Chinese industrial cities, reducing the need for raw materials temporarily. The second of course is the Ukrainian conflict.

The only commodity that rose in price last week was coking coal, despite India increasing imports from Russia, at a discount, presumably.

Mining stocks took a battering this week, even profitable producers are being slaughtered in the rush to sell.  One example being Karora Resources (TSX.V: KRR), producing gold with a nickel by product with low AISC.

 

Stocks on our watchlist in the news this week.

Orla Mining Q1 2022 Earnings Call Transcript

Eloro Resources Completed a Discounted Bought Deal

Colonial Coal CEO Presentation Enthuses Investors

Pure Gold Mining – Diary of a Disaster

Ascot Resources Commenced their 2022 Drilling Program

Karora Resources welcomed Tony Makuch as an Advisor

Calidus Resources Poured first gold at Warrawoona

 

 

Market Data (US$)

 

Precious Metals

Gold 1812 -3.77%
Silver 21.11 -5.59%
Palladium 1946 -5.21%
Platinum 945 -1.87%
Rhodium 16000 -8.57%
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Base Metals

Copper 4.09 -5.54%
Nickel 12.52 -8.61%
Zinc 1.61 -11.05%
Tin 15.37 -16.92%

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Energy metals

Cobalt 35.94 -2.73%
Manganese 3.45 -3.63%
Lithium 62982 -1.61%
Uranium 52.75 -4.35%

 

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Bulk commodities

Iron Ore 127 -11.99%
Coking Coal 494  +1.44%
Magnesium 5155 -11.30%

 

Metal ETF’s

GDX 30.88 -9.81%
GDXJ 37.1 -10.49%
Sil 28.77 -9.47%
SILJ 10.67 -10.03%
GOEX 26.2 -11.04%
GLD 168.79 -3.55%
COPX 35.46 -6.64%

 

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If you need clarification of any information contained in this note, or have any questions about any company mentioned in this note, I will be delighted to assist – Please email andrew@city-investors-circle.com

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

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This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Disclosure

At the time of writing the author owns shares in all the companies mentioned in this report except Pure Gold Mining, bought in the market at the prevailing price on the day of purchase.

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