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Mining Review Sunday Update 3rd October 2021

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Mining Review Sunday Update 3rd October 2021

City Investors Circle published their weekly Mining Review, with comments on the soaring prices of steelmaking (coking) coal, lithium, and uranium.

Mining companies mentioned include American Creek, Bardoc Gold, Colonial Coal, Tinka Resources, and UEC.

 

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Mining Review UEC CEO Amir Adnani on Fox Business TV

UEC CEO Amir Adnani on Fox Business TV

 

Mining Review Sunday Update 3rd October 2021

City Investors Circle published their weekly Mining Review, with comments on the soaring prices of steelmaking (coking) coal, lithium, and uranium.

Mining companies mentioned include American Creek, Bardoc Gold, Colonial Coal, Tinka Resources, and UEC.

The big mining news of the week has been the “merger of equals” announced between Kirkland Lake Gold and Agnico Eagle Mines, creating a US$24 billion gold mining comany with 48 million ounces of gold in reserves and resources.

I do wonder whether this might prompt other M & A activity, given the current lower price of gold?  I have a feeling we may see more bids coming whilst precious metal prices remain depressed

This week also saw two Chinese companies bidding against each other for an Australian lithium company, with CATL pipping Ganfeng Lithium, who refused to become involved in a bidding war.

Moving on to the companies on our watchlist, Colonial Coal ended the week very positively, at C$1.43, a gain of around 38% in a week.  This was due of course in part to the rising price of coking coal, and also some market commentators feeling a bid for the company may be forthcoming.

With an in ground resource value of just 30 Canadian cents per tonne, an FOB price of around C$140 per ton, and a market price of over C$400 per tonne, it’s easy to see the attraction……

Tinka Resources increased their zinc resource at Ayawilca in Peru by 58%, and the share price fell!   Given that zinc is trading at a very high price currently, that fall is hard to fathom.

 

All watchlist stocks in the news this week
Colonial Coal Jumped on Coal price and bid rumours

City Investors Circle Market Review for September 2021 published

American Creek Treaty Creek Drilling at Goldstorm

Tinka Resources Increased their Zinc Resources at Ayawilca in Peru by 68%

Bardoc Gold Initiate a Strategic Review

Uranium Energy Corporation CEO Amir Adnani Interviewed on Fox Business

 

Market Data

Precious metals

Gold 1760 +1%
Silver 22.51 0%
Palladium 1852 -6%
Platinum 972 -1%
Rhodium 13400 -6%

Gold and silver recovered a little on Friday to end the week respectfully, after being under pressure due to the higher US dollar and 10 Year Treasury yield rising.

Platinum group metals all suffered as a result of lower car production due to the chip shortage and other supply chain issues.

 

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Base metals

Copper 4.1 -2%
Nickel 8.25 -5%
Zinc 1.37 -1%
Tin 16.6 0%

The Chinese government’s release of strategic reserves of key industrial metals seems to be having the desired effect, although copper stocks in Shanghai are quite low.

Tin suffered a ‘fat finger’ moment this week, but has returned to normal trading now.

 

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Energy Metals

Cobalt 24.03 0%
Manganese 2.88 -1%
Lithium 26533 +16%
Uranium 43 -14%

Lithium powers on as companies seek to secure supply.  Uranium had a sharp reverse of around 16% in a single day after the recent Sprott inspired rally.

 

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Bulk commodities

Iron Ore 116 +13%
Coking Coal 356.1 -1%

Iron ore bounced back after recent falls due to the Chinese government restricting steel production for the rest of the year.  Coking coal consolidated after recent gains, although prices being quoted in China are much higher than the figure quoted here for Australian FOB.

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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.

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Disclosure

At the time of writing the author holds shares in Bardoc Gold, Colonial Coal, and American Creek.

 

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