Mining Monthly: October Edition
What you need to know:• Precious metal prices were up substantially in October, rebounding from two months of consolidation, significantly outperforming broader markets which were down during the month. Other commodities and battery metals held in relatively flat.
• The price of uranium continued to perform well over the last month and resulted in significant equity financings.
• Deteriorating economic data leads us to believe we are approaching a long-awaited pivot after both the BoC and the Fed held rates in September/October.
Sentiment Update
Precious metal prices significantly outperformed in the month of October with gold up 8.6% to $1984.9/oz and silver up 8.5% to $22.9/oz. The gold and silver equities lagged the commodity performance, with the GDX, GDXJ, and SIL up 4.1%, 3.6%, and 0.5%, respectively, however, still outperformed broader markets such as the TSX and S&P500 which were down 3.4% and 1.9%, respectively. Other commodity prices continued to remain flat through the month of October, following two flat months in August and September. The battery metals space once again had a mixed month, showing no real trend as investors wait to see the effects that the quantitative tightening will have on the space.
Uranium continued to move higher following a breakout month in September (up 20%). The Uranium price ended the month up 4% at $73.0/lb. On the back of the elevated prices, we saw a substantial uptick in capital raises for uranium exploration and development. However, our long-term thesis on uranium still stands as none of these projects will add to the supply for upwards of 5 years. Find our research note on uranium here.
Artemis Gold Inc is a Canada-based gold development company. The Company is engaged in identification, acquisition and development of gold properties. The Company is working under GK Project that is approximately 17 kilometer west of the community of Telegraph Creek, northwestern British Columbia.
First Quantum Minerals is engaged in the production of copper, nickel, gold, zinc, platinum-group elements and acid, and related activities including exploration and development. Co. has operating mines located in Zambia, Australia, Finland, Turkey, Spain and Mauritania. Co. is developing the Trident project in Zambia, the Cobre Panama copper project in Panama, exploring the Haquira copper deposit in Peru and the Taca Taca copper-gold-molybdenum porphyry deposit in Argentina. Co.'s operating segments are individual mine development projects or mine operations. The Corporate and Other segment evaluates and acquires new mineral properties and includes Co.'s metal marketing division.
IAMGold is engaged in the exploration for, development and operation of gold mining properties, and the operation of a niobium mine.
Marathon Gold is engaged in the acquisition, exploration and development of precious and base metal prospects.
New Gold is a gold producer engaged in gold mining and related activities including acquisition, exploration, extraction, processing and reclamation.
Pan American Silver is engaged in the production and sale of silver, gold and other base metals including copper, lead and zinc as well as other related activities, including exploration, extraction, processing, refining and reclamation. Co.'s primary product (silver) is produced in Peru, Mexico, Argentina and Bolivia. Additionally, Co. has project development activities in Peru, Mexico and Argentina, and exploration activities throughout South America and Mexico.
West Red Lake Gold Mines is engaged in acquiring, exploring and developing mineral properties. Co. has not earned significant revenue and is considered to be in the exploration stage. The ability of Co. to carry out its business plan rests with its ability to secure equity and other financing. Co. is in the exploration stage has no proven reserves or production relating to its operations. The application of the going concern assumption is dependent upon Co.'s ability to generate future profitable operations and obtain necessary financing to do so.
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