Mining Review Sunday Update 16th January 2021

City Investors Circle Mining Review 16th January 2021

Coking coal really roofed it this week, up 14%, and has gone into contango, meaning the future price of coal into China is now being than the present market price.

Colonial Coal is a beneficiary of this strong price at a time where it’s rumoured that potential predators are circling.

Gold had a good week, as did nickel, copper, and tin.

 

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Banyan Gold drill intercept

 

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City Investors Circle Mining Review 16th January 2021

Coking coal really roofed it this week, up 14%, and has gone into contango, meaning the future price of coal into China is now being than the present market price.

Colonial Coal is a beneficiary of this strong price at a time where it’s rumoured that potential predators are circling.

Gold had a good week, as did nickel, copper, and tin.

 

Mining company news

Fiore Gold’s takeover by Calibre Mining completed this week, so I am now a shareholder in a company with four producing mines, cashflow positive, plus a large treasury, which is not a bad place to be.

I hope they look to secure another near to production mine outside Nicaragua (preferably in the USA, Canada, or Mexico) as well as bringing Gold Rock in Nevada into production as soon as possible. That way there will be less focus on them being primarily a Nicaragua based producer, because that may well be holding the price back currently in my opinion.

Once Gold Rock starts producing, they will have two producing USA based gold mines, and one wonders what they propose doing with the 2 million ounce gold resource at Gold Eagle in Washington state?  Hecla own the adjoining property and are key to any development of Gold Eagle apparently.

 

 

Shares on our Watchlist in the news this week

 Ascot Resources Intercepts High-Grade Gold at Day

 Latrobe Magnesium added to Watchlist

 03 Mining Results from Its Marban Drill program

 American Creek JV Drills 1.91 g/t Gold Eq Over 85m

 Newcore Gold Intersects 1.79 g/t Gold Over 24 M

 Magnetic Resources Report high Grade Gold Zones

 Cabral Gold Reviews Achievements and Objectives

 

 

Market Data

(All in US$)

Precious metals

Gold 1818 1%
Silver 23 3%
Palladium 1895 -2%
Platinum 974 1%
Rhodium 16400 -4%

 

 

Base metals

Copper 4.52 4%
Nickel 10.04 8%
Zinc 1.62 -1%
Tin 18.98 6%

Low copper stocks on the LME, Shanghai, plus Chinese non warranted warehouse stocks are driving the price higher as maintaining supply outweighs trying to hold the price down.

 

Energy metals

Cobalt 31.71 0%
Manganese 3.23 2%
Lithium 49265 11%
Uranium 45.75 -3%

Lithium just keeps on rising as supply concerns continue and the Chinese are focusing on supply rather than price, otherwise their EV battery factories will grind to a halt.

 

Bulk commodities

Iron Ore 129.6 2%
Coking Coal 410 14%
Magnesium 7398 -12%

Iron ore has bounced nicely, and increased demand for coking coal combined with low stocks in China have driven the price higher. The coking coal price is now in contango.

 

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ETF’s

GDX 30.97 3%
GDXJ 40.47 3%
Sil 35.05 3%
SILJ 12.11 5%
GOEX 28.48 3%
GLD 169.67 1%
COPX 39.72 6%

 

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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.

 

Disclosure

At the time of writing the author holds shares in all the companies mentioned in this article except Cabral Gold, all bought in the market at the prevailing price on the day of purchase.

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