Author: Sid Rajeev, Head Of Research

Weekly Mining Commentary

Weekly Mining Commentary

Global equity indices responded positively to the U.S. FDA’s approval of Pfizer’s (NYSE: PFE) vaccine.

Current Vs Pre Covid-19 (as of August 23, 2021)

Source: FRC / Various

We believe the approval should boost investor and consumer confidence. Consumer confidence was down prior to this development, amid weaker manufacturing data from the U.S. and China, and rising unemployment in China.

Source: Trading Economics

Gold prices strengthened, while the US$ retreated last week. Base metals retreated due to the above-mentioned economic weakness. Nickel prices remain highly volatile. Prices declined 5.5% last week, after reporting a 6.6% gain in the week prior to last.

Base Metal Producers

Source: S&P Capital IQ & FRC

Valuations of gold producers were down 3%; base metal producers were down 13%.

Gold Producers

Source: S&P Capital IQ & FRC

Base Metal Producers

Gold Producers and Base Metal Producers

Source: S&P Capital IQ & FRC

Only three (five last week) out of the 15 hardest hit nations (including the U.S., the U.K., and Germany) experienced higher daily new COVID-19 cases last week. Five (seven last week) experienced WoW increases in deaths. Deaths to daily new cases remain at approximately 0.5% in highly vaccinated countries vs 1.5%-2.0% from the highs earlier this year. We believe Pfizer’s approval will result in an increase in vaccination rates.

Globally, 32.5% have received at least one dose vs 31.4% at the same time last week. 72.6% of Canadians have received at least one dose (previously 72.0%). 65.6% of Canadians are fully vaccinated (previously 63.9%) vs 61.4% in the U.K. (59.8%), and 51.1% in the U.S. (50.3%).

Share of People vaccinated against COVID-19, Aug 22, 2021

We are maintaining our price forecasts.

FRC Forecasts

Source: FRC

Author: Sid Rajeev, Head Of Research

Source: https://www.researchfrc.com/weekly-mining-commentary-81