Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

Five of the seven global equity indices we track moved up last week, recouping most all the losses incurred in the prior week due to the U.S. Fed’s signal to move up its timeline for rate hikes.

Nickel prices surged due to stronger demand (driven by batteries), and as inventory levels fell on both the LME and the SHFE.

Week-over-Week (June 28, 2021) and Year-over-Year (June 28, 2021)

Valuations of gold producers were down 2% WoW; base metal producers were up 4%.

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

12 out of the top 15 hardest hit nations continued to report flat or WoW declines in new COVID-19 cases. 67.6% of Canadians have received at lease one dose vs 66.5% at the same time last week. 26% of Canadians are fully vaccinated (previously 19%) vs 48% in the U.K. (46%), and 46% in the U.S. (45%). Due to vaccine hesitancy, we are noting a significant decline in vaccination rates once a country reaches the 60% mark.

Share of people who received at least one dose of COVID-19 vaccine, June 27, 2021

Source: Official data collated by Our World in Data

Share of people vaccinated against COVID-19, June 27, 2021

Source: Official data collated by Our World in Data

We are maintaining our price forecasts. While we remain positive on gold and silver, while a correction in copper and zinc prices are likely as China is releasing inventories from its reserves to tame the rally in base metals prices. A key catalyst for this week will be the U.S.’ June jobs report.

Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

Source: https://www.researchfrc.com/weekly-mining-commentary-73