Author: Sid Rajeev, Head Of Research

Weekly Mining Commentary

Global equity indices were relatively flat; down 0.2% last week.

Current Vs Pre COVID-19 (as of Sept 13, 2021)

Source: FRC / Various

Among mainstream metals, copper and zinc gained strength from lower inventory levels.

Week-over-Week (Sept 13, 2021) and Year-over-Year (Sept 13, 2021)

Source: FRC / Various

LME Inventory (Sept 13, 2021)

Source: FRC / Various

SHFE Inventory (Sept 10, 2021)

Source: FRC / SHFE

Valuations of both gold and base metals producers were flat WoW.

Gold Producers

Source: Capital IQ & FRC

Base Metal Producers

Source: Capital IQ & FRC

Gold Producers and Base Metal Producers

Source: Capital IQ & FRC

Last week, two (four last week) of the 15 hardest hit nations experienced higher daily new COVID-19 cases. Two countries (unchanged) experienced WoW increases in deaths.

Globally, 42.1% have received at least one dose, up 1.5 ppt WoW vs 1.3 ppt the same time last week. Vaccination rates in North America and Europe are increasing at a slower pace. 74.5% of Canadians have received at least one dose (up 0.6 ppt vs 0.8 ppt the same time last week). 68.4% of Canadians are fully vaccinated (0.9 ppt vs 1.1 ppt) vs 64.5% in the U.K. (0.8 ppt vs 1.1 ppt), and 53.1% in the U.S. (0.8 ppt vs 0.7 ppt).

A survey released by the New York Fed today showed that consumers’ one and three-year inflation expectations are the highest since 2013. We are maintaining our positive outlook on gold/silver. Our price forecasts remain unchanged.

FRC Forecasts

Source: FRC

Author: Sid Rajeev, Head Of Research

Source: https://www.researchfrc.com/weekly-mining-commentary-84