Mining Review – Sunday Update 6th June 2021
After the recent strong run for gold and silver, some profit taking occurred this week, and gold is currently back below $1900, at $1890, and silver $27.78. Weaker than expected US employment numbers caused gold to rebound off the lows.
Bardoc Gold and Westhaven Gold both reported high grade drill results this week.
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Mining Review – Sunday Update 6th June 2021
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After the recent strong run for gold and silver, some profit taking occurred this week, and gold is currently back below $1900, at $1890, and silver $27.78.
Weaker than expected US employment numbers caused gold to rebound off the lows for the week.
Of the companies on our watchlist, both Bardoc Gold and Westhaven Gold reported high grade drill results this week, in an otherwise quiet week for news.
Roxgold and Fortuna Silver have sent out their proxy forms for shareholders to vote through the takeover, which I personally hope still gets voted down. There is still some opposition to the deal by both sets of shareholders, whether it’s sufficient to prevent the deal is another matter.
The deal cements largely silver projects in Mexico and some risky South American countries, (Peru and Argentina), with a very successful and growing gold producer in Africa, in currently stable west Africa.
I guess the positive is that risk is diluted with projects in 5 countries, so if something bad occurs in one the remaining four are still on track. I still think this is a better deal for Fortuna shareholders, I was very happy with the progress Roxgold were making by themselves.
Stocks on our watchlist in the news this week
Wesdome gold – Announced the sale of Moss Lake for a consideration of US$57 million
Westhaven Gold – Reported high grade gold intercepts including 614 gpt over 0.45 m
Bardoc Gold – Reported high grade results at Aphrodite, including 14m @ 7.63 gpt Au
Roxgold / Fortuna Silver – Despatched proxy forms to shareholders to vote on the proposed takeover
Mining news
Russian miner Nordgold has announced plans to dual list on the London and Moscow stock exchanges.
The rationale is to float 25% of the company, to take advantage of the current high gold price, which makes a lot of sense. The company plans a dividend policy that will attract investors.
Nordgold has operations in Russia, Burkina Faso, Guinea and Kazakhstan.
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Precious Metals
| Gold | 1893 | ↓ | -1% |
| Silver | 27.81 | ↑ | 0% |
| Palladium | 2740 | ↑ | 0% |
| Platinum | 1162 | ↓ | -1% |
| Rhodium | 23000 | ↓ | -9% |
Gold had a poor start to the week with positive US employment numbers due to be released, but then the numbers disappointed the market, gold recovered and ended the week on a positive note.
Rhodium is falling back quickly from recent highs, and there are various diverse prices being quoted by a number of reputable sources, so it’s hard to pin down an actual current price. For consistency I have gone with the mid of three prices I usually source the information from.
Base Metals
| Copper | 4.5 | ↓ | -2% |
| Nickel | 8.135 | ↑ | 1% |
| Zinc | 1.35 | ↓ | -1% |
| Tin | 14.74 | ↑ | 4% |
Energy Metals
| Cobalt | 19.78 | ↔ | 0% |
| Manganese | 3.19 | ↓ | -1% |
| Lithium | 12645 | ↓ | 0% |
| Uranium | 31.4 | ↑ | 1% |
The green energy metals are treading water after the rush earlier this year. This is possibly due to some car production around the world being constrained due to a shortage of semi conductors, which is predicted to last for some time.
Tesla has a large quantity of “mostly completed” cars stockpiled in car lots, and the presumption is they are only missing micro chips.
Bulk Commodities
| Iron Ore | 198 | ↑ | 8% |
| Coking Coal | 152 | ↓ | -2% |
The coking coal fob market turned bullish on market expectations of a facilities overhaul in July for major Australian miners, according to Fastmarkets.
ETF’s
| GDX | 38.68 | ↓ | -2% |
| GDXJ | 53.68 | ↓ | -2% |
| Sil | 48.41 | ↓ | -1% |
| SILJ | 17.45 | ↓ | -1% |
| GLD | 177.16 | ↓ | -1% |
With gold taking a small hit it was inevitable the ETF’s would take a hit, and so they did. I have noticed they tend to overshoot gold’s movements in both directions, or have done recently. This week gold was down 1% and the GDX and GDXJ fell 2%, for example.
Miscellaneous Data
| Au / Ag Ratio | 68.15 | ↔ | 0% |
| 10 yr Treasury bond | 1.554 | ↓ | -2% |
| US $ index | 90.13 | ↓ | 0% |
The Mining Review for Sunday 6th June 2021 is complete
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