Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

Global equity indices we track remained relatively flat last week.

Nickel and zinc prices were up WoW due to inventory declines on the LME and the SHFE (Shanghai).

Week-over-week(June 14, 2021) and Year-over-Year(June 14,2021)

Source: MarketWatch

LME Inventory (June 14, 2021)

Source: FRC/Various

SHFE Inventory (June 11, 2021)

Source: FRC / SHFE

Valuations of gold producers were down 2% WoW; base metal producers were down 1%.

Gold Producers

Source: S&P Capital IQ & FRC

Base Metal Producers

Source: S&P Capital IQ & FRC

Gold Producers and Base Metal Producers

Source: S&P Capital IQ & FRC

Most of the top 15 hardest hit nations reported flat or WoW declines in new COVID-19 cases five weeks in a row. Canada overtook Israel last week, and is now at the top, in terms of percentage of population with at least one dose. 64.7% of Canada’s population has received at lease one dose vs 61.6% at the same time last week. 12% of Canada’s population are fully vaccinated (previously 7.5%) vs 44.0% in the U.K. (41.0%), and 43.0% in the U.S. (42.0%). Canada has been gradually relaxing its restrictions, and consumer sentiment is on the rise.

Canada Consumer Sentiment

Source: TradingEconomics.com

Share of people who received at least one dose of COVID-19 vaccine, Jun 13, 2021

Source: Official data collated by our World in Data

Share of people vaccinated against COVID-19, Jun 13, 2021

Source: Official data collated by Our World in Data

We are maintaining our price forecasts. The U.S. Fed’s meeting later this week will give us more insights on their inflation expectations, and plans for rate hikes. We have a positive outlook for gold and silver, as we are not expecting rate hikes this year.

FRC Forecasts

Source: FRC

Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

Source: https://www.researchfrc.com/weekly-mining-commentary-71