Mining Review Sunday Update 1st May 2022
Another poor week for gold, back below $1,900 due to anticipation of several FED half percent interest rate hikes, and a strong dollar.
Companies in the news this week include Calidus Resources, Colonial Coal, Cornish Metals, Eloro Resources, and Neometals. […]
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Eloro Resources – Drill crew at their Iska Iska project, Potosi, Bolivia.
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Mining Review Sunday Update 1st May 2022
Another poor week for gold, back below $1,900 due to anticipation of several FED half percent interest rate hikes, and a strong dollar.
Interestingly, because of a lower pound sterling, gold is UP 2% in the last month, despite being 2% lower in US dollar terms.
Silver fared worse, taking a hefty hit on the week, see the precious metal price table below.
Companies in the news this week include Calidus Resources, Colonial Coal, Cornish Metals, Eloro Resources, and Neometals.
It’s always heartening to see a mining company achieving its set goals and stated objectives within the timeframe, and on budget, so the recent news from Calidus Resources‘ Warrawoona Gold Mine was well received.
Whilst being wary of there being ‘many a slip between cusp and lip’, they are currently on track to achieve their targets at the moment.
Neometals is another company performing well, and their Primobius JV is doing very well in my view. I do wonder whether this may be spun out and listed in its own right, maybe in Frankfurt?
Eloro Resources is continually producing some significant drill intercepts at Iska Iska, their main project. Sadly they are not getting the share price appreciation one would normally expect, due to the project being in Bolivia, a more risky country for mining projects.
Having said that, the current government are being respectful of international norms, so on current form Bolivia is a whole lot less risky than under former president Morales. This project looks to have enormous scale as well as high grades of silver and tin, so a sale to a more powerful mining company with more political clout looks on the cards eventually.
Colonial Coal was the subject of a research note by Epstein Research this week. The share price has slipped back due to investor impatience, as it tries to negotiate a sale of it’s high quality coking coal project. It looked undervalued before, it looks extremely undervalued now, at under CAD$0.30 per tonne in the ground for a commodity currently trading at US$465 tonne, or CAD$597.
The FOB costs of mining are around CAD$150, so a massive margin for what is traditionally low margin high tonnage commodity.
News from our watchlist companies this week
City Investors Circle Market Review April 2022
Eloro Resources drilled 169.11g Ag eq over 235m
Colonial Coal Epstein Research note – “Cheapest Coking Coal Junior”
Cornish Metals Special Meeting of Shareholders
Calidus Resources commenced ore processing at Warrawoona
Neometals’ JV Primobius Received its Operating permit
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Market data
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A full list of metal prices and comments can be found on the Monthly Market Review for April 2022, please click HERE
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If you need clarification of any information contained in this note, or have any questions about Eloro Resources, I will be delighted to assist – Please email andrew@city-investors-circle.com
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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,
The author holds shares in Calidus Resources, Colonial Coal, and Eloro Resources, bought in the market at the prevailing price on the days of purchase.
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