Mining Review Sunday Update 19th June 2021
Gold took a hard tumble for the flimsiest of reasons, the possibility of two US interest rate increases in two years time!
It really does illustrate perfectly the lunacy of the current financial markets.
China released copper and iron ore from their strategic reserve to try and curb speculation, with little to no effect thus far.
Super Pit, Kalgoorlie, Western Australia
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Mining Review Sunday Update 19th June 2021
Gold took a hard tumble for the flimsiest of reasons, the possibility of two US interest rate increases in two years time!
It really does illustrate perfectly the lunacy of the current financial markets.
China released copper and iron ore from their strategic reserve to try and curb speculation, with little to no effect thus far.
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Stocks on our Watchlist in the news
Osisko Development – Reported high grade gold intercepts at the former Barkerville Cow Mountain
Karora Resources – In production with mine development in WA – Initiating coverage
Red River Resources – Updated the market on their royalty dispute
Fiore Gold – Acquired the Illipah Project, Nevada
Neometals – Reported their vanadium recovery from slag project is progressing as anticipated
Mining Conference Zoom meetings – A good idea, but meeting requests have now become overwhelming
General Mining news
Centerra are talking about negotiating their mine with the Kyrgyzstan government after they took over the running of the mine in their territory.
Hochschild reported the death of 27 miners killed in a bus crash in Peru. Our thoughts and condolences go out to the families of those that sadly perished whilst being transported to work.
Market Data
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Precious Metals
| Gold | 1764 | ↓ | -6% |
| Silver | 25.81 | ↓ | -8% |
| Palladium | 2475 | ↓ | -11% |
| Platinum | 1043 | ↓ | -9% |
| Rhodium | 21750 | ↓ | -2% |
Gold saw its worst weekly performance since March 13, 2020, when financial markets collapsed, due to then spreading COVID-19 pandemic. the FED rattled investors by predicting possibly two small rises in interest rates during 2023.
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Base Metals prices
| Copper | 4.28 | ↓ | -5% |
| Nickel | 7.84 | ↓ | -5% |
| Zinc | 1.34 | ↓ | -2% |
| Tin | 14.83 | ↓ | 0% |
Base metal prices broke down after the Chinese government announced they would release some stocks from their strategic reserves to cool rising commodity prices, and end speculation.
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Energy Metal prices
| Cobalt | 19.96 | ↑ | +4% |
| Manganese | 3.43 | ↓ | -1% |
| Lithium | 12569 | ↓ | -1% |
| Uranium | 32.25 | ↑ | +1% |
Bulk commodities
| Iron Ore | 210 | ↑ | +1% |
| Coking Coal | 150 | ↑ | +2% |
Both bulk commodities rose in tandem this week, a rare event recently. The Chinese government is looking to cool the iron ore price by releasing some strategically held stocks
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Indices
| GDX | 34.13 | ↓ | -11% |
| GDXJ | 47.73 | ↓ | -10% |
| Sil | 43.32 | ↓ | -10% |
| SILJ | 15.41 | ↓ | -11% |
| GLD | 164.93 | ↓ | -6% |
As you would expect after the gold rout, the PM ETF’s are covered in blood.
The leverage on the way up works in the opposite way on the way down of course.
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Miscellaneous data
| Au / Ag Ratio | 67.93 | ↓ | -0% |
| 10 yr Tbond | 1.44 | ↓ | -1% |
| US $ index | 92.32 | ↑ | +2% |
| HUI | 271.08 | ↓ | -12% |
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Disclosure
The writer currently holds shares in Karora Resources, Fiore Gold, and Red River Resources. bought in the market at the prevailing price on the day of purchase.