City Investors Circle Mining Review Sunday Update 8th Aug
The week was going well, until better than expected US employment numbers were released on Friday, and they crashed gold over $40 per ounce, or 2%.
Base and industrial metals also had a poor week, with iron ore down 14% on Chinese government restrictions on steel production having the desired effect on price.
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Orla Mining Cerro Quema project panoramic view
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City Investors Circle Mining Review Sunday Update 8th Aug
The week was going well, until better than expected US employment numbers were released on Friday, and they crashed gold over $40 per ounce, or 2%.
This resulted in analysts speculating the start of FED tapering, which resulted in higher US treasury yields and speculation on rising interest rates, all bad for gold. The fickle market that had people predicting higher gold prices last week now has other commentators predicting lower prices next week.
Base and industrial metals also had a poor week, with iron ore down 14% on Chinese government restrictions on steel production having the desired effect on price. Tin continues to rise, and is still the highest rising metal so far in 2021.
Turning to stocks that we follow, the biggest news of the week was the announcement by Bardoc Gold that they are going to high grade some production in the early years of their mine, ensuring a quicker payback, and possibly earlier dividends.
Apollo Consolidated reported high grade intercepts during their drilling campaign at Lake Rebecca, near Kalgoorlie, WA. 03 Mining and Canuc Resources also reported good results from their ongoing drill programs.
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Mining Review – Companies on our watchlist in the news
Orla Mining – Delivered a robust PFS for Cerro Quema in Panama
Bardoc Gold – A strategy review will result in growing the resource and advance production at the Bardoc Gold Project.
Canuc Resources – Encountered magnetite and gold at San Javier, Mexico
Fosterville South – Ready to drill at Reedy Creek, Victoria, Australia
American Creek – JV partner Tudor Gold reported high grade gold at Goldstorm, treaty Creek.
03 Mining – Reported the results from 16 holes drilled on their Alpha property in Quebec.
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Mining Review Market Data
Precious Metals
| Gold | 1764 | -2% |
| Silver | 24.37 | -4% |
| Palladium | 2562 | -1% |
| Platinum | 976 | -6% |
| Rhodium | 18150 | +2% |
Gold declined on Friday after the unexpectedly good US employment figures had market analysts predicting the end of tapering earlier than anticipated. All other PM’s performed poorly except rhodium, which had a 2% bounce after the recent 30% fall in price.
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Base Metals
| Copper | 4.32 | -2% |
| Nickel | 8.75 | -2% |
| Zinc | 1.35 | -1% |
| Tin | 16.32 | +1% |
Tin continues it’s upward rise, whereas the other base metals were lower on reduced Chinese GDP figures, and an anticipation of reduced demand.
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Energy metals
| Cobalt | 23.76 | 0% |
| Manganese | 3.09 | 2% |
| Lithium | 13150 | 0% |
| Uranium | 32.25 | 0% |
The energy metals remain moribund with only lithium and manganese rising slightly.
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Bulk commodities
| Iron Ore | 166 | -14% |
| Coking Coal | 197 | -6% |
This is where the action was this week, with iron ore dropping a whopping 14% in a week! The Chinese government have been trying to force down the price of some metals, and by limiting steel production to a quota they are succeeding in bringing down the iron ore price by huge chunks.
Coking coal fell back on reduced steel production and some Chinese coal mines coming back online after government mandated safety checks.
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Metal ETF’s
| GDX | 33.24 | -4% |
| GDXJ | 43.6 | -10% |
| Sil | 40.53 | -4% |
| SILJ | 13.75 | -11% |
| GLD | 164.44 | -3% |
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The Mining Review for Sunday 8th August is complete.
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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.
Disclosure
At the time of writing the author holds shares in Orla Mining, 03 Mining, American Creek Resources, Bardoc Gold, and Fosterville South, all bought in the market at the prevailing price on the day of purchase.
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