Mining Review Sunday Update PDAC 2022
Another poor week for the junior mining sector as prices slid further downwards, with the TSX Venture Exchange Index down 9% in a week.
It was the week that Osisko Development announced the temporary closure and care and maintenance of the former Barkerville Gold’s Bonanza Ledge Mine in the Cariboo, due to the higher costs of mining. […]
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Former Barkerville Gold Bonanza Ledge Mine, Cariboo, B.C. Osisko Development have closed and put on care and maintenance due to the higher costs of fuel and other capital items.
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Mining Review Sunday Update PDAC 2022 Edition
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PDAC 2022 took place last week, and it was another poor week for the junior mining sector as prices slid further downwards, with the TSX Venture Exchange Index down 9% in a week.
As it is June, rather the normal March date for the show, the slide cannot be attributed to the dreaded “curse of the PDAC“, as markets have been sliding for weeks now.
I attended PDAC 2022, along with 17,000 others, which is quite a drop from the 24,000 that normally attend the conference.
Speaking to booth holders investors were very thin on the ground, whereas people seeking business opportunities and employment were in abundance. One company told me they had spoken to only 4 investors all day on Tuesday!
I touched base with quite a few companies from previous years, but many were missing, and the company count was 200 lower than 2020. This resulted in a large dining area being placed at one end of the Investors Exchange to fill the space.
Overall I was pleased I attended, it was good to connect with people again.
I enjoyed a train trip to Niagara Falls and a live baseball match in addition to the conferences, so it wasn’t all work.
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It was also the week that Osisko Development announced the temporary closure and care and maintenance of the former Barkerville Gold’s Bonanza Ledge Mine in the Cariboo, due to the higher costs of mining.
This is the first such announcement, but with soaring fuel costs for miners dependent on operating off grid, I expect more to follow in due course, especially if diesel prices continue to climb due to the boycott of Russian diesel.
It’s become vital for investors to check the AISC of any producing miners in their portfolio, and if they are low margin and using diesel, then assess whether they are a good hold with the elevated fuel costs as well as other capital costs eroding what is already a thin margin.
Low cost producers look a much better bet currently, it really is time to take a long hard look at one’s portfolio for any weaknesses.
As I have been away at the Toronto conferences, news updates for companies we follow is light this week.
News from companies on our watchlist;
Orla Mining Acquired Gold Standard Ventures Nevada properties, diversifying their country risk
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Market Data
Weekly price changes
All quoted in US$
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Precious metals
| Gold | 1838 | -2.03% |
| Silver | 21.61 | -1.37% |
| Palladium | 1816 | -5.66% |
| Platinum | 934 | -4.30% |
| Rhodium | 13000 | -5.45% |
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Base metals
| Copper | 4.13 | -5.71% |
| Nickel | 11.53 | -9.57% |
| Zinc | 1.65 | -13.61% |
| Tin | 14.72 | -12.90% |
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Energy metals
| Cobalt | 32.55 | -0.70% |
| Manganese | 3.49 | +0.58% |
| Lithium | 68226 | +0.73% |
| Uranium | 48.95 | -6.41% |
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Bulk commodities
| Iron Ore | 127.1 | -11.18% |
| Coking Coal | 385 | -4.23% |
| Thermal coal | 346 | +4.85% |
| Magnesium | 3980 | -0.05% |
| Lumber | 613 | +11.25% |
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Metal ETF’s
| GDX | 30.35 | -2.32% |
| GDXJ | 36.78 | -2.90% |
| Sil | 28.59 | -3.15% |
| SILJ | 10.56 | -3.30% |
| GOEX (PCX) | 25.56 | -5.40% |
| GLD | 171.29 | +0.34% |
| COPX | 34.53 | -5.84% |
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Miscellaneous
| Gold / Silver Ratio | 84.16 | -0.99% |
| 10 yr Treasury Bond (TNX) | 3.24 | -0.61% |
| US index (DXY) | 104.64 | +0.32% |
| HUI | 241.55 | -7.71% |
| RJI (Rogers Index) | 9.08 | +0.22% |
| RJA Agriculture | 10.25 | 0.00% |
| RJN Energy | 4.53 | +1.12% |
| RJZ Metals | 11.04 | -0.09% |
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.If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email andrew@city-investors-circle.com
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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 owns shares in Orla Mining, bought in the market at the prevailing prices on the days of purchase.
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