Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

After dropping 2.6% in the week prior to last, global equity indices we track moved up 1.6% last week as global vaccination rates continue to ramp up.

Current Vs Pre COVID-19 (as of July 26, 2021)

Source: FRC / Various

 

Copper and nickel prices surged on a steep decline in inventory levels on the SHFE (Shanghai).

Week-over-Week (July 26, 2021) and Year-over-Year(July 26, 2021)

Source: FRC / Various

LME Inventory (July 26, 2021)

Source: FRC / Various

SHFE Inventory (July 23, 2021)

Source: FRC / SHFE

Valuations of gold producers were flat 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

Six (seven last week) of the 15 hardest hit nations (including the U.S., France, Turkey, Italy, Iran, and Indonesia) are experiencing a spike in new COVID-19 cases. On a positive note, new daily cases in the U.K and Russia have dropped after reporting WoW increases in the prior few weeks.

Globally, 27.2% have received at least one dose vs 26.3% at the same time last week. 70.9% of Canadians have received at lease one dose (previously 70.2%). 55% of Canadians are fully vaccinated (previously 50%) vs 55% in the U.K. (53%), and 49% in the U.S. (48%).

We are maintaining our price forecasts. Check out this video to learn why we have a positive outlook on near-term gold prices. Inflation in the U.S. hit record highs in June.

FRC Forecasts

Source: FRC

Key changes to our rating/fair value estimates of companies under coverage are listed below:

Weekly Mining Commentary

Author: Sid Rajeev, Head Of Research

Source: https://www.researchfrc.com/weekly-mining-commentary-77