Mining Monthly: July Edition
What you need to know:• The metals and mining market settled in July, following a tremendous run over the last six months.
• In July, gold was down 1%, silver was up 2%, and copper down 13%. The equities underperformed the commodities, with the GDX, GDXJ, SIL, and COPX down 0.8%, 5.0%, 1.5%, and 4.2%, respectively.
• Financings remained elevated during July, with various juniors raising funds as capital continues to trickle down.
Sentiment Update
The mining sector saw mixed sentiment in July, marked by divergent trends as gold prices dipped for the second consecutive month, while silver surged to +10-year all-time highs, fueled by industrial demand and supply deficits. Copper captured headlines, rising to highs of $5.80/lb during the month on the back of tariff news, before plunging to $4.40/lb as certain copper items were excluded from the tariffs. Despite a continued month of elevated financing activity in the sector, mining equities lagged, reflecting cautious investor sentiment amid inflationary concerns and geopolitical tensions.
Gold was down 1% in the month, staying relatively level around the $3,300/oz mark, following rising treasury yields. Silver was up 2%, continuing its upward trend for the third consecutive month. Equities underperformed the commodity prices with the GDX down 0.8%, GDXJ down 5.0%, and SILJ down 1.7%, underperforming broader markets like the S&P 500 and TSX up 2.4% and 1.5%, respectively. In relation to the tariff news, the COPX fell 4.2% this month, despite being up YTD. The other metals and commodities remained fairly flat, with the best performers being lithium (+17%) and molybdenum (+14%), while the worst performer was copper (-13%).
On July 15th, U.S. inflation came in at +2.7% YoY and +0.3% MoM, in line with the consensus of +2.7% YoY and +0.3% MoM. This compares with the U.S. Core inflation data, which came in at +2.9% YoY and +0.2% MoM, below the consensus of +3.0% YoY and +0.3% MoM. Inflation in Canada came in at 1.9% YoY, in line with the consensus, while core inflation came in at 2.7% YoY.
From Our Coverage – We are proud to highlight that two of our clients, Omai Gold Mines (OMG:TSXV) and Andean Precious Metals (APM:TSX), topped our list of best performers by group for gold development companies (OMG up 40%) and silver producers (APM up 28%).
Amerigo Resources is engaged in the production of copper and molybdenum concentrates with operations in Chile. Through its subsidiary, Minera Valle Central S.A., Co. has a contract with Chile's state-owned copper producer National Copper Corporation to process the tailings from El Teniente underground copper mine.
Copper Fox Metals is engaged in the exploration for and development of mining properties in Western Canada.
Endurance Gold is engaged in the exploration and development of mineral properties in North America and has not yet determined whether its properties contain ore reserves that are economically recoverable. The recoverability of the amounts expended on mineral interests by Co. is dependent upon the existence of economically recoverable reserves, the ability of Co. to obtain necessary financing to complete exploration and development of its mineral properties and upon future profitable production or proceeds from disposition of its mineral interests.
GIGA Metals is an exploration stage mineral resources company engaged in the acquisition and exploration of mineral properties, primarily in northern British Columbia. Co. has not yet identified any mineral resource on any of its properties that is of a commercially exploitable quantity.
Mineros is primarily engaged in the mining of gold, as well as in related activities pertaining to the mining industry in general, including the mining of precious metals, metallic or non-metallic mineral substances or hydrocarbons.
Santacruz Silver Mining is engaged in the operation, acquisition, exploration and development of mineral properties in Mexico, with a primary focus on silver, but also including gold, zinc and lead. Co. is focused on meeting and maintaining its primary production objective of producing approximately 1.5 million silver equivalent ounces on a yearly basis at its producing property, the Rosario Mine. In addition, Co. is exploring three other mineral properties, being the San Felipe Project (an advanced stage project), the Gavilanes Project (an exploration project), and the El Gachi Property (an early stage exploration project).
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