Mining Review Sunday Update 3rd April 2022

The nickel price is still holding at a higher level then before the LME ‘Big Shot’ debacle, and volumes remain low, some trust has been lost.

Watchlist companies making news this week included Banyan Gold, Cornish Metals, Gold Road Resources, Neometals, and Pure Gold Mining.  […] 

 

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City Investors Circle – Mining Review Sunday Update 3rd April 2022

 

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The nickel price is still holding at a higher level then before the LME ‘Big Shot’ debacle, and volumes remain low, some trust has been lost.

When the LME unwound the day’s trades to rescue the Chinese trader ‘Big Shot’, heavily underwater and facing wipeout, they effectively cancelled completed contracts. This is not a good precedent to set, as it shakes confidence in the exchange, traders cannot be sure of where they stand if trades can be unwound.

What happens if you used the cash from an unwound nickel trade into another trade, is that unwound as well? What if you were losing and after that it bounced?   A more detailed explanation is available here

I will be astonished if this doesn’t end in the High Court personally.

 

Watchlist companies making news this week included  Banyan Gold, Cornish Metals, Gold Road Resources, Neometals, and Pure Gold Mining. Not all reported good news, so first the bad.

Gold Road Resources reported very poor half year figures, with the proposed dividend halved as a result. Mechanical issues played their part, as did a low grade area, which they are through now, and entering a higher grade zone.  Guidance for this year is more or less the same as last.

Pure Gold Mining reported that they require to do a C$50 million financing to complete their recovery plan, which sent the share price down like the proverbial lead balloon.

No price for the funding has been mentioned, and that’s killing the share price as nobody in their right mind would buy before the financing price has been declared.

Advantage is with the financiers, so it may not be pleasant, lube may well be required. I feel for existing holders, but there may be an opportunity for non holders once the financing price and details are known.

 

Neometals announced their Primobius JV with SMS GMBH officially opened their new battery recycling plant in Hilchenbach, Germany. This is a significant milestone, and the share price has reacted accordingly.

***   Neometals share price has hit a 52 week high on the news.

 

Cornish Metals, looking for tin and copper in Cornwall, UK, reported a financing for up to £40.5 million, to continue to explore their highly prospective project for these critical metals.

 

Full details for all these stories can be found by clicking the links below.

 

Watchlist companies making news this week.

 

City Investors Circle Market Review for March 2022 published

Banyan Gold Intersected 1.16 G/T Gold over 68.9 m

Pure Gold Mining slumped on new Financing Requirement

Neometals’ Primobius JV Opened their Battery Recycling Plant

Gold Road Resources 2021 published their Full Year Results and Dividend

Cornish Metals are to Raise up to £40.5 Million

 

Market Data (US $)

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Precious metals

Gold	1926	-2%
Silver	24.61	-4%
Palladium	2215	-2%
Platinum	984	-2%
Rhodium	18400	3%

 

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Base Metals

Copper	4.71	0%
Nickel	14.86	-12%
Zinc	1.88	0%
Tin	19.91	3%

 

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Energy Metals

Cobalt	37.4	0%
Manganese	4.18	-4%
Lithium	74197	0%
Uranium	56.7	-1%

 

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Bulk commodities

Iron Ore	160.3	8%
Coking Coal	525	4%
Magnesium	6521	0%

 

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Metal ETF’s

GDX	39.49	2%
GDXJ	48.2	0%
Sil	37.42	1%
SILJ	14.5	-1%
GOEX	33.3	-1%
GLD	179.5	-2%
COPX	46.7	0%

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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

At the time of writing the author owns shares in Banyan Gold and Gold Road Resources, bought in the market at the prevailing price on the day of purchase.

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