Mining Review Sunday Update 17th Jul 2022

Mining Review Sunday Update 17th July 2022

The strong US dollar is pushing down precious and industrial metal prices.

Mining stocks are taking a beating along with other popular sectors of the market.



Neometals Primobius JV official opening

Neometals Primobius JV official opening


City Investors Circle – Mining Review Sunday Update 17th July 2022


The strong US dollar is pushing down precious and industrial metal prices, as can be seen from the table below.

Gold lost 2% week on week, and silver a whopping 3.16%. these are large numbers for a single week, especially as they come on the back of a large decline. Gold is just holding above $1,700, let’s see if it can provide support or whether we will be through into the 1600’s this week.

If gold falls any further I would expect to see announcements of some mines being put on care and maintenance soon.

The US dollar’s rise linked to interest rate rises is causing the decline of course, and we have to remember that in other currencies the price of gold is not falling so much.

It’s the same for base metals, and copper has fallen all the way back to the $3 range, after such a strong run during the past year. It’s also been badly effected by the Chinese covid lockdowns, as well as supply chain disruption, and the Ukraine conflict.

Mining stocks are unsurprisingly taking a beating along with other popular sectors of the market.

My major concern for a wile has been opportunistic bids for good quality companies by stronger ones, taking advantage of an undervaluation situation. A good example of that was the purchase of Gold Standard Ventures by Orla Mining, and now we have had Alexco being taken out with a low ball bid from Hecla Mining.

Despite Alexco announcing the buyout price of 47c per share was a “premium” to the VWAP, it’s a fraction of the price from the previous two weeks. I accept that Alexco had poorly executed (again), and once again silver had plunged just as they were restarting the mine, but this price looks like legalised theft to me.

I am concerned about Banyan Gold, where there is an obvious predator, Victoria Gold, sitting a few miles away, in production. My concern arises from the fact that the CEO’s of the two companies are married to each other!

When I expressed this concern to CEO Tara at PDAC, she responded that the NED’s were there to ensure a good, fair price is offered. Her confidence in NED’s is higher than mine, crusty old sceptic that I am.

As the shareholders of GSV and Alexco can attest, there is a danger that a good investment is sold for a song, and that just adds to the risk of holding stocks at this point.


Stocks on our watchlist making news this week

  Orla Mining added to tier 1 watchlist

  American Creek Resources reported 237.3 m of 1.51 g/t AU EQ at Treaty Creek

  Wesdome Gold Mines Announced Q2 2022 Production Results

  Karora Resources Produced 30,652 oz Au in Q2

  Neometals Confirmed a Mercedes Benz Purchase Order

  Orla Mining Announced their Q2 2022 Operational Results

  Cabral Gold Drilled 20.9m @ 4.2 g/t Au at Cuiú Cuiú



Market Data (US$)

Weekly price movements


Precious metals

Gold 1707 -2.07%
Silver 18.68 -3.16%
Palladium 1758 -16.80%
Platinum 848 -4.83%
Rhodium 13300 +3.50%



Base Metals

Copper 3.27 -7.89%
Nickel 9.22 -7.71%
Zinc 1.35 -5.59%
Tin 11.61 -0.09%



Energy metals

Cobalt 27.1 0.00%
Manganese 3.82 +6.11%
Lithium 67347 -0.84%
Uranium 47 -4.57%



Bulk commodities

Iron Ore 100.1 -9.90%
Coking Coal 240 -13.04%
Thermal coal 251 -36.78%
Magnesium 3818 -1.29%
Lumber 642 -2.58%



Metal ETF’s

GDX 25.59 -5.43%
GDXJ 30.04 -3.75%
Sil 23.96 -3.62%
SILJ 8.73 -4.69%
GOEX  (PCX) 20.87 -4.44%
GLD 159.01 -2.03%
COPX 26.91 -8.62%




Au / Ag Ratio 90.84 +0.25%
10 yr Treasury bond (TNX) 2.93 -4.99%
US  index (DXY) 107.99 +1.02%
HUI 203.56 -6.10%
RJI (Rogers Index) 8.05 -3.71%
RJA Agriculture 8.79 -5.38%
RJN Energy 4.17 -2.11%
RJZ Metals 9.6 -4.48%




.If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email



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At the time of writing the author holds shares in American Creek Resources, Banyan Gold, Karora resources, and Orla Mining, bought in the market at the prevailing price on the days of purchase.