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