Mining Review – Weekly Update 16th May 2021
Iron Ore prices continue to fall after the recent all time highs recorded in China, with the Dalian Commodities Exchange futures dropping the daily limit, and ending the session 3.6% down on Friday.
Workers at two of BHP’s large copper mines in Chile have rejected managements’ offers , and have voted to strike. The price of copper could well move higher until these disputes are resolved.
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City Investors Circle Mining Review – Weekly Update 16th May 2021
Iron Ore prices continue to fall after the recent all time highs recorded in China, with the Dalian Commodities Exchange futures dropping the daily limit, and ending the session 3.6% down.
Its a long time since the price of iron ore has generated so much excitement, but it is at the moment, due to it soaring to new record highs on the back of demand assumptions.
Copper may rally again next week as workers at two large Chilean copper mines owned by BHP have voted to strike unless an improved pay deal is offered by management. I wonder if the current high price of copper has anything to do with their higher wage aspirations?
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New companies I have met recently
I participated in the Mines and Money online conference this week, and found a couple of new companies that we will follow on our watchlist.
In particular I liked Newcore (NCAU.V), based in Ghana, West Africa, a solid jurisdiction in my opinion, with British rule of law. They are in the middle of a drill program, and looking to produce a PEA around the end of Q2 2021.
The resource starts at surface and is oxidised to 50 m, and the company are looking at the sulphides below that depth now, and comparing them a similar geology on trend, where the grade increases to depth in the sulphides.
NCAU’s market cap is C$58 million, have a management team with a strong track record of creating shareholder value, with strong institutional backing (35%), and management ownership (32%).
Another story I have followed for a while and is starting to look really interesting is Banyan Gold (BYN.V), based in the Yukon near Keno Hill, a neighbour of Alexco. CEO Tara Christie recently invested C$350,000 of her own money, a very positive indicator of her belief that she is going to deliver shareholder value, in my opinion.
Finally, another company I met quite recently that I am now watching from a distance is Cornerstone Capital Resources (CGP.V), which holds around 10% interest in Solgold, and their Cascabel project in Ecuador. Cornerstone has projects of its own in the immediate vicinity of Cascabel, and any signs that they could be similar in grade and size to this huge discovery could well be a company maker.
Ecuador is not normally a jurisdiction I would consider investing in, but Cascabel has large industry investors, (BHP and Newcrest), and the new government is US backed, so, being near the Colombian border, where there are no indigenous issues, this appears to have less risk than I would normally attribute to this country.
Companies on our watchlist in the news this week
Orla Mining – Confirmed the good construction progress of their Camino Rojo Gold mine
Westhaven Gold – Hit high grade gold in multiple zones at Shovelnose Mountain, BC.
Apollo Consolidated –Confirmed good gold intercepts at their Rebecca project, WA.
Ascot Resources – Rose 20% on high volume after a recommendation from Porter Stansberry.
Los Cerros – Confirmed the regional potential of their La Quinchia project in Colombia
Centerra Gold – Hot by a huge fine by the Kyrgyzstan government.
Precious metals
| Gold | 1844 | ↑ | 1% |
| Silver | 27.43 | ↔ | 0% |
| Palladium | 2799 | ↓ | -1% |
| Platinum | 1222 | ↓ | -2% |
| Rhodium | 25600 | ↑ | 1% |
Industrial Metals
| Copper | 4.63 | ↓ | -1% |
| Nickel | 7.9 | ↔ | 0% |
| Zinc | 1.335 | ↓ | -2% |
| Tin | 14.18 | ↓ | -9% |
Energy Metals
| Cobalt | 20.25 | ↓ | -1% |
| Manganese | 3.22 | ↑ | 5% |
| Lithium | 12742 | ↔ | 0% |
| Uranium | 30.4 | ↑ | 5% |
Bulk Commodities
Iron ore and coking coal both rose as Chinese steel demand rose.
| Iron Ore | 210 | ↑ | 5% |
| Coking Coal | 133 | ↑ | 7% |
PM ETF’s
| GDX | 37.84 | ↑ | 1% |
| GDXJ | 51.11 | ↓ | -1% |
| Sil | 45.38 | ↔ | 0% |
| SILJ | 16.22 | ↓ | -3% |
| GLD | 172.69 | ↑ | 1% |
The City Investors Circle Mining Review for 17th May is now complete.
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