City Investors Circle Mining Review 9th Jan. 2022
Gold has fallen back once again after the FED indicated it would raise interest rates in March, and the US dollar and bond yields rose.
Gold is hanging around $1,800, but many market commentators are predicting a fall as the rate hike nears, so maybe a time to look at moving some funds into cash until the next gold bull run starts. Gold stocks are already beaten up with many falling around 50% in a year, so you have to ask how much more can they fall?
Copper and some other base metals covered by the Market Review also fell, as the US dollar gained strength.
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Lithium Power International Greenbushes photo, Western Australia.
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City Investors Circle Mining Review 9th Jan. 2022
Gold has fallen back once again after the FED indicated it would raise interest rates in March, and the US dollar and bond yields rose.
Gold is hanging around $1,800, bit many market commentators are predicting a fall as the rate hike nears, so maybe a time to look at moving some funds into cash until the next gold bull run starts. Gold stocks are already beaten up with many falling around 50% in a year, so you have to ask how much more can they fall?
Copper and some other base metals also fell as the US dollar gained strength.
Fiore Gold and Calibre Mining shareholders voted through the takeover proposal, so Fiore Gold will disappear from the market next Wednesday. I am still undecided whether to sell Fiore before the day or accept Calibre shares.
Calibre has a good treasury and is using a ‘hub and spoke’ system to mine smaller deposits in Nicaragua, and is profitable, yet it seems unloved by the market, and you have to ask yourself why?
Nicaragua is a bit of a backwater, with only a handful of mining companies working there, and not much known about the country, I guess it’s just not exciting or sexy. It’s run by a president who imprisons opponents before elections, and I guess that doesn’t inspire confidence, even if he is clearly mining friendly and sees the benefits it brings to the country.
I think Calibre wanted Fiore to diversify into the US and try and shake of the stigma of only being in Nicaragua, and Fiore was a cheap way to buy production, have a second mine operating in two years, and have exploration upside potential.
Calibre have a good treasury, are profitable, and are looking to instigate some exploration around Fiore’s Pan mine.
A profitable company currently with a market cap of CAD$445 million with a treasury of CAD$79 million looks a decent bet to me, even in a depressed gold market.
Shares on our Watchlist in the news this week
Minera Alamos Major Shareholder Osisko Disposal
Lithium Power International Australian Update
Fiore Gold Shareholders Agree Calibre Mining Deal
City Investors Circle revamps Exploration Watchlist
Neometals Barrambie Pilot Plant and Offtake Update
City Investors Circle Tier 1 Watchlist changes
Neometals’ Primobius to Enter USA with Stelco
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Market Data
(All in US$)
Precious metals
| Gold | 1794 | -5% |
| Silver | 22.26 | -3% |
| Palladium | 1940 | -1% |
| Platinum | 960 | -2% |
| Rhodium | 17000 | 21% |
The FED anticipated rate hike along with a rising US dollar and bond yields pushed gold back down again after it was climbing nicely.
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Base Metals
| Copper | 4.34 | 0% |
| Nickel | 9.29 | 2% |
| Zinc | 1.63 | 1% |
| Tin | 17.98 | 0% |
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Energy Metals
| Cobalt | 31.72 | 0% |
| Manganese | 3.18 | -1% |
| Lithium | 44320 | 19% |
| Uranium | 47 | 10% |
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Bulk commodities
| Iron Ore | 126.8 | 0% |
| Coking Coal | 360 | 2% |
| Magnesium | 8388 | 3% |
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ETF’s
| GDX | 30.01 | -4% |
| GDXJ | 39.24 | -6% |
| Sil | 33.98 | -9% |
| SILJ | 11.56 | -9% |
| GOEX | 27.75 | -6% |
| GLD | 167.72 | -1% |
| COPX | 37.56 | 2% |
The City Investors Circle Mining Review for the 9th January 2022 is complete.
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City Investors Circle is based in the financial district in the City of London
We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.
Our audience is selected and invited individually to ensure interest and relevance for the presenting company.
Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.
We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.
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This website is not sponsored, we are truly independent, and will always remain so.
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 holds shares in Fiore Gold bought in the market at the prevailing price on the day pf purchase