Mining Monthly: June Edition
What you need to know:• The mining sector posted another solid month in June with gold breaking its streak of gains but silver and copper performing well. This was led by increased geopolitical uncertainty, continued government spending, and potential for lower interest rates.
• Gold was down 2%, silver was up 4%, and copper was up 5% compared to the GDX up 3%, GDXJ up 4%, SILJ up 12%, and COPX up 10%.
• Financings remained strong in June led by a $200M equity raise for the Sprott Physical Uranium Trust and a $200M investment from Tether into Elemental Altus.
Sentiment Update
The metals sector posted another strong month, led by silver and copper, while gold ended its streak of gains. This was driven by increased geopolitical uncertainty (Iran), continued government spending (One Big Beautiful Bill Act), and potential for lower interest rates.
Gold was down 2% in June, following a move down in the U.S. 10-year at the end of the month. Silver was up 4% and platinum was up 27%. Equities outperformed the commodities with the GDX up 3%, GDXJ up 4%, and SILJ up 12%. The mining equities performed in line with broader markets, with the S&P 500 and TSX up 3% and 5%, respectively. Copper also performed well, being up 5% while the COPX was up 10%. The other metals and commodities were mostly positive, with the best performer being platinum (+27%) and the worst performer being molybdenum (-7%).
Financing activity remained very strong in the month, led by a $200M equity raise from the Sprott Physical Uranium Trust, Tether’s $200M investment in Elemental Altus, and various bought-deal financings. M&A was also elevated in the month as the majors continue to deploy their increased cash flow.
U.S. inflation came in at +2.4% YoY and +0.1% MoM, below the consensus of +2.5% YoY and +0.2% MoM. This compares with the U.S. Core inflation data, which came in at +2.8% YoY and +0.1% MoM, also below the consensus. Inflation in Canada came in at 1.7% YoY, in line with the consensus of 1.7% and core inflation came in at 2.5% YoY.
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).
Tempo Gold is in the exploration stage and is engaged in the acquisition, exploration and development of gold resource properties in Tanzania, East Africa.
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