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.
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Canuc Resources drilling at Silver Mountain, Sonora, Mexico
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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
ZEN Graphene Solutions Changed its Name to Zentek
Minera Alamos Celebrates Santana First Gold Pour
Canuc Resources Adds Two Claims at San Javier
Cornish Metals Intersect Tin, Copper, Silver and Zinc at United Downs
Bardoc Gold Hit High Grade Fold at N. Kanowna Star
Apollo Consolidated bidder Ramelius Resources increases its offer to 62 c
Monthly Mining Review October 2021 Published
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Market Data
(All in US $)
Precious Metals
| Gold | 1817 | 2% |
| Silver | 24.16 | 1% |
| Palladium | 2040 | 6% |
| Platinum | 1037 | 2% |
| Rhodium | 14100 | 0% |
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.
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Base Metals
| Copper | 4.445 | -1% |
| Nickel | 8.91 | -1% |
| Zinc | 1.48 | -5% |
| Tin | 17.37 | +1% |
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.
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Energy Metals
| Cobalt | 25.51 | 0% |
| Manganese | 3.11 | 7% |
| Lithium | 27470 | 0% |
| Uranium | 43.8 | 0% |
Not much happening in the battery metals space this week.
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Bulk Commodities
| Iron Ore | 92.5 | -24% |
| 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
| GDX | 32.75 | -1% |
| GDXJ | 44.75 | 3% |
| Sil | 39.51 | 0% |
| SILJ | 13.56 | 4% |
| GOEX | 30.9 | 2% |
| GLD | 169.84 | 4% |
.Miscellaneous data
| Au / Ag Ratio | 75.75 | -2% |
| 10 yr Tbond | 1.453 | -8% |
| US index (DXY) | 94.22 | 0% |
| HUI | 258.9 | 2% |
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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.
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Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.
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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 poster holds shares in Minera Alamos, Colonial Coal, and Bardoc Gold, bought in the market at the price prevailing on the days of purchase.