Weekly Mining Commentary

Global equity markets were down 0.6% last week (0.6% gain in the prior week).

Source: FRC / Various

Jerome Powell’s re-nomination as the Fed’s Chair pushed the US$ higher, and gold/silver prices lower today, as Powell is considered to be less dovish than his contender, Lael Brainard. Powell’s nomination has not changed our outlook, and we continue to expect slow rate hikes and high near-term inflation, which will support both precious and base metals prices. Despite lower inventory levels, prices of base metals (except nickel) also retreated due to the stronger US$.

Source: FRC / Various

Source: FRC/Various

Source: FRC/SHFE

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

Source: S&P Capital IQ & FRC

Source: S&P Capital IQ & FRC

Source: S&P Capital IQ & FRC

Daily new cases of COVID-19 surged in Europe last week. Austria has imposed a 10-day lockdown. Last week, six countries (previously three) out of the 15 hardest hit nations experienced higher daily new cases. However, only one country (previously two) experienced a WoW increase in deaths. Globally, 53.30% have received at least one dose, up 1.2 ppt WoW vs 1.1 ppt the same time last week. 75.79% of Canadians are fully vaccinated (0.5 ppt vs 0.5 ppt) vs 67.67% in the U.K. (0.2 ppt vs 0.3 ppt), and 57.92% in the U.S. (0.3 ppt vs 0.4 ppt).

Source: Our World in Data / FRC

Source: Our World in Data / FRC

We are maintaining our prices forecasts.

Source: FRC

Source: https://www.researchfrc.com/weekly-mining-commentary-93