Mining Review – Sunday Update 16th April 2021
Gold is rising once again, and had a very positive week, due to the US dollar and US treasury yields both falling, Ukraine tensions rising, and amid rumours that China has increased imports of the yellow metal because they are planning a gold backed crypto currency.
Iron ore prices also rose to their highest price since September 2011.
Mining Review – Sunday Update 16th April 2021
Gold is rising once again, and had a very positive week, as the US dollar and US treasury yields both fell, Ukraine tensions rose, and amid rumours that China has restarted allowing imports of the yellow metal, because they are planning a gold backed crypto currency.
Iron ore prices also rose to their highest price since September 2011.
Coking coal prices fell back, as stocks fell at Chinese steel mills, and the Chinese government is inspecting local mines for health and safety issues. This is expected to result in the closure of some Chinese coking coal mines, which should buoy the international price in the coming months.
Stocks on our watchlist in the news
03 Mining – Sold their Kinebik mine to Tri Origen
Osisko Development – Reported high grade gold intercepts at their Cariboo project
Neometals – Reported high grade palladium in nickel at their Mt. Edwards project.
Uranium Energy Corp. – Completed the purchase of 2.1 million pounds of uranium
Precious Metals
Gold, silver, palladium, and rhodium all enjoyed healthy gains during the week, yet platinum strangely fell slightly. I haven’t seen any market commentary suggesting a reason for that, so maybe just a temporary blip, we shall see.
| Gold | 1776 | ↑ | 2% |
| Silver | 25.95 | ↑ | 3% |
| Palladium | 2684 | ↑ | 3% |
| Platinum | 1197 | ↓ | 0% |
| Rhodium | 26200 | ↑ | 3% |
Base Metals
A positive week here too, helped by the falling US dollar and stimulus optimism. Nickel may have pulled back because of softness in other battery metals.
| Copper | 4.17 | ↑ | 3% |
| Nickel | 7.28 | ↓ | -4% |
| Zinc | 1.27 | ↑ | 0% |
| Tin | 12.61 | ↑ | 0% |
Energy Metals
Falling back a bit again, and have been since their recent peak, as I suspect the prices were over egged by too much optimism about EV’s, when in fact most of the original issues about EV’s still remain.
Specifically, the cost of purchase v an internal combustion engine vehicle, the lack of a charging infrastructure, and, never mentioned when discussing EV’s, the cost of charging the car! Apart from charging in one’s own home, this can be very expensive, and many city dwellers will have no choice but to use external commercial charging points.
| Cobalt | 22.6 | ↔ | 0% |
| Manganese | 3.35 | ↓ | -2% |
| Lithium | 12564 | ↓ | -1% |
| Uranium | 29.95 | ↓ | -3% |
Bulk Commodities
A strange week, in that iron ore prices rose on increased steel demand and a forecast of a 5% rise in 2021, yet coking coal prices fell slightly, notwithstanding the fact it is anticipated that some Chinese mines will be closed by the government due to health and safety concerns, in the near future, resulting in a higher demand for imported met coal.
| Iron Ore | 172 | ↑ | 4% |
| Coking Coal | 147.5 | ↓ | -1% |
Precious Metal ETF’s
As one would expect, a very positive week, with an average rise of 3% week on week across the board.
| GDX | 36.03 | ↑ | 4% |
| GDXJ | 50.32 | ↑ | 3% |
| Sil | 44 | ↑ | 3% |
| SILJ | 15.95 | ↑ | 2% |
| GLD | 166.35 | ↑ | 2% |
Miscellaneous Market Data
The US 10 year Treasury Bond rate continues to fall, weakening demand for the US dollar, and the US $ Index is also falling as a result.
| Gold / Silver Ratio | 67.71 | ↓ | -2% |
| 10 yr Tbond | 1.57 | ↓ | -5% |
| US $ index | 91.53 | ↓ | -1% |
The weekly reported is finished.
Please check the website for daily company and market updates, www.city-investors-circle.com
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