Among mainstream metals, nickel was the best performer, as inventory levels fell sharply on the SHFE (Shanghai). Valuations of gold producers were down 5% WoW; base metal producers were down 1%.
Highly vaccinated nations such as the U.S., the U.K., and Israel, continued to report flat or declines in new cases. 44.0% of the U.S. population has received vaccinations (at least one dose) vs 41.9% at the same time last week. This compares to 50.8% in the U.K. (up from 49.6%), and 33.6% in Canada (up from 29.2%). Approximately 2,300 Canadians have contracted the virus two weeks after receiving their first dose of vaccine, or 1.3% of new cases since the vaccine rollout began. We believe this data clearly indicates the success of vaccines.
This week, we are expecting downward pressure on the stock prices of Canadian cannabis companies, as Statistics Canada reported a MoM cannabis sales decline in February last week. Sales had declined MoM in January as well. The consecutive MoM declining trend is concerning, but we believe it could be due to seasonality, as the sector had a similar decline in 2019.
As of April 30, 2021, the Canadian big four LPs are trading at a 78% premium (down from 97% in previous week) over their U.S. peers.
