Report

Mining Monthly: September Edition

What you need to know:
• The precious metals markets were down in September, alongside a pullback across broader markets. Commodities and battery metals held in relatively flat.
• The price of uranium has surged over the last month. We revisit our bullish view on the uranium market from our thematic research note.
• 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.

Sentiment Update
Commodity prices remained relatively flat through the month of September, following another flat month in August. However, precious metals fell with gold down 4.8% to $1845.5/oz and silver down 8.3% to $22.0/oz. The mining equities followed the declining precious metals prices with the GDX, GDXJ, and SIL down 8.0%, 10.4%, and 9.8%, respectively. These declines outpaced broader markets which also had a substantial down-month with the TSX and S&P500 being down 3.7% and 4.9%, respectively. The battery metals space continues to be mixed with lithium down another 18% in September (down 23% in August), while cobalt, nickel, zinc, and tin were mixed-to-flat.

Uranium had a breakout month up 20% to $70.0/lb bringing its gains to 42% on the year. This is on the back of demand surging as countries like China, India, and Russia pursue more nuclear programs to meet their increasing energy needs. Find our bullish outlook and commentary on the uranium space in our thematic research note “Uranium: Asymmetry at its Finest”.
Underlyings
Aldebaran Resources (ALDE)

B2Gold Corp.

B2Gold is a Vancouver-based gold producer with three operating mines (two in Nicaragua and one in the Philippines), a fourth mine which has entered into the commissioning and testing phase in Namibia and a portfolio of development and exploration assets in Mali, Colombia, Burkina Faso and Nicaragua. Co.'s reportable operating segments include its mining operations and development projects. The Other Mineral Properties segment consists of Co.'s interests in mineral properties which are at various stages of exploration. The Corporate and Other segment includes corporate operations and the Bellavista property in Costa Rica which is classified as held for sale.

E3 Lithium Ltd. (ETL)

Endurance Gold

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.

Endurance Gold Corporation

Endurance Gold Corporation

Equinox Gold

Equinox Gold is in the business of mineral exploration and is actively engaged in the acquisition and exploration of copper and other mineral properties in Central and South America.

Foran Mining Corp. (FOM)

Fortuna Silver Mines Inc.

Fortuna Silver Mines is engaged in the mining, exploration, extraction and processing of silver, gold and zinc mine properties in southern Peru and Mexico.

Fortuna Silver Mines Inc.

K92 Mining

Lundin Gold

Lundin Gold is engaged in the acquisition, exploration and development of gold and base metal properties.

Marathon Gold Corp.

Marathon Gold is engaged in the acquisition, exploration and development of precious and base metal prospects.

New Pacific Metals

Reunion Gold Corp.

Reunion Gold engaged in the acquisition, exploration and development of mineral properties. Co.'s mineral properties are in the exploration stage and it has not yet been determined whether these properties contain ore reserves that are economically recoverable. The recoverability of the amounts shown for mineral properties and deferred exploration expenses is dependent upon the existence of economically recoverable reserves on these properties, the ability of the Company to obtain necessary financing to complete the development of those reserves and upon future profitable production from these reserves or sufficient proceeds from their disposal thereof.

SKEENA RESOURCES LIMITED

TRIGON METALS INC.

Victoria Gold Corporation

Wesdome Gold Mines Ltd.

Wesdome Gold Mines is a gold producer. Co. is engaged in gold mining and related activities including exploration, extraction, processing and reclamation.

Provider
Atrium Research Corporation
Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists. 

Analysts
Ben Pirie

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