City Investors Circle Mining Review
FED Chairman Jerome Powell delivered a hawkish speech at Jackson Hole, favouring containing inflation over the state of the economy and markets.
This drove the Dow down 1,000 points and caused gold to slump, taking down miners and indices.
.
.
.
.
.
.
Mining Review Sunday Update – Powell’s Hawkish Tone Crashes Markets
.
.
City Investors Circle
FED Chairman Jerome Powell delivered a hawkish speech at Jackson Hole, favouring containing inflation over the state of the economy and markets.
Leading up to the speech I thought I detected a more cautious tone, and had expected him to deliver something that would have given investors and the markets hope that rate increases would soon be done and the pivot could reasonably be expected as inflation subsided.
Sadly he delivered something far worse, with his focus firmly on subduing inflation regardless of whether it causes a recession or not. The markets responded to that accordingly, and we had a massacre up until the close.
This drove the Dow down 1,000 points and caused gold to slump, taking down miners and the ETF indices by several percentage points.
Zach Hill, Head of Portfolio Management at Horizon Investments stated;
“We do believe the Fed when they say that rates are going to be higher for longer and we’ve seen some repricing of the cuts in 2023.
“We think there’s more to go on that front and it’s likely to continue to fuel equity volatility from here.”
.
A sombre finish to the week as we head into a Bank Holiday weekend in the UK.
.
Turning to the mining companies we follow,
There was some good announcements made during the last week, all lost in the market maelstrom on Friday, sadly.
Good news is more often than not simply creating liquidity events enabling selling in these markets.
.
Cabral Gold were the most active, reporting the results of two drill campains their Cuiu Cuiu project in Para State, Brazil. Alan Carter continues to deliver the exploration news on a regular basis.
.
Minera Alamos reported a record month of gold production, which has been constrained due to drought conditions limiting their water supply, but the company is still not reay to declare commercial production.
.
These, plus all the other news stories can be read in full by clicking the links below.
Minera Alamos Recorded Gold Production
Cabral Gold Drilled 6.4m @ 11.6 g/t gold
Karora Resources Drilled 6 G/T Au Over 13 m
Ascot Resources Expanded the Sebakwe Zone to 350m
Cabral Gold Drilled 11m @ 3.1 g/t gold at PDM
.
Market Data
Weekly performance (All in US$)
| Gold | 1740 | -0.46% |
| Silver | 18.85 | -1.10% |
| Palladium | 2107 | +2.28% |
| Platinum | 865 | -3.46% |
| Rhodium | 13950 | +8.14% |
| Copper | 3.7 | +1.65% |
| Nickel | 9.64 | -2.72% |
| Zinc | 1.64 | +1.23% |
| Tin | 11.18 | +0.36% |
| Cobalt | 23.26 | +5.15% |
| Manganese | 3.36 | -1.75% |
| Lithium | 69292 | +1.38% |
| Uranium | 49.3 | +1.23% |
| Iron Ore | 103.3 | +1.57% |
| Coking Coal | 315 | +12.50% |
| Thermal coal | 312 | +4.00% |
| Magnesium | 3667 | -3.19% |
| Lumber | 524 | +0.77% |
| GDX | 24.9 | -1.39% |
| GDXJ | 30.94 | -1.24% |
| Sil | 24.08 | -0.58% |
| SILJ | 9.33 | +2.41% |
| GOEX (PCX) | 21.87 | -2.19% |
| GLD | 161.76 | -0.59% |
| COPX | 31.86 | +4.02% |
| Au / Ag Ratio | 91.89 | +2.79% |
| 10 yr Tbond (TNX) | 3.043 | +2.35% |
| US index (DXY) | 108.84 | +0.68% |
| HUI | 197.5 | -1.16% |
.
.
.
=======
.If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email andrew@city-investors-circle.com
=======
.
City Investors Circle is based in the financial district in the City of London
We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.
Our audience is selected and invited individually to ensure interest and relevance for the presenting company.
Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.
We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.
If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com
.
=======
,
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 Karora Resources and Minera Alamos, bought in the market at the prevailing price on the days of purchase.
.
.