Mining Review Weekly Update 7th Nov. 2021
A fairly boring week as far as the mining and commodity sectors go, after a few weeks of excitement involving soaring metal prices, shortages of supply, and M & A activity amongst mining companies. Gold rose on interest rate news.
Who will be next in the M & A queue? Colonial Coal looks a likely candidate, as do Bardoc Gold, Canuc Resources, and maybe even Cartier Resources, in my view.
City Investors Circle – Mining Review Weekly Update 7th Nov. 2021
.A fairly boring week as far as the mining and commodity sectors go, after a few weeks of excitement involving soaring metal prices, shortages of supply, and M & A activity amongst mining companies.
Copper stocks remain low, with interruptions of supply from Chile and Peru, yet despite that the price has fallen back. Gold topped $1,800 again on no imminent rate rise news.
Who will be next in the M & A queue? Colonial Coal looks a likely candidate, as do Bardoc Gold, Canuc Resources, and maybe even Cartier Resources, in my opinion.
Colonial Coal are up for sale, no secret about that, management are highly experienced explorers and developers, but not miners, they make no secret of that. Potential predators are rumoured to be circling, we just need that first bid to bring others out of the woodwork.
Bardoc Gold have announced the dreaded “strategic review“, and the CEO has gone, due to cost overruns on the capex for their Bardoc Gold Project. They are drilling to add to their 3.3 million ounces of gold, and they must surely be very attractive to any potential acquirer with existing milling facilities in the area. They are only 30 miles from Kalgoorlie, so a good number of potential candidates within easy reach, in my opinion.
Canuc Resources have some good quality neighbours on their doorstep, namely Barksdale, and Osisko Development, so any decent results could lead to a quick takeout.
Cartier Resources have quality assets and a good honest CEO, but despite that they seem to have lost momentum. It’s not beyond the bounds of possibility that a suitor comes calling whilst the share price is in the doldrums.
Stocks on our watchlist in the news last week
(All in US $)
Gold benefitted from the seeming reluctance to commit to raising interest rates in the near term.
PGM’s rose on renewed industrial optimism as the shortage of semiconductors eased.
Despite the LME reporting their lowest ever copper stocks, and a general shortage elsewhere, the price fell this week.
The other base metals had a poor week, as the prices consolidated after recent steep rises. Tin rose though, still powering on.
Not much happening in the battery metals space this week.
|Coking Coal *||341||-8%|
* Australian FOB price
Both coal and iron ore took a hammering this week, as Chinese production slowed due to environmental concerns and a shortage of electricity in the north, where many smelters are located.
Precious Metal ETF’s
|Au / Ag Ratio||75.75||-2%|
|10 yr Tbond||1.453||-8%|
|US index (DXY)||94.22||0%|
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