Report

Mining Monthly: August Edition

What you need to know:
• The metals and mining market saw a resurgence in August, reaching record highs, following a subpar couple of previous months.
• In August, gold was up 5%, silver was up 7%, and copper was down 2%. The equities massively outperformed the commodities, with the GDX, GDXJ, SIL, and COPX up 22.2%, 24.6%, 22.9%, and 15.8%, respectively.
• Sector multiples are beginning to expand as gold firmly holds above $3,000/oz and silver surpasses $40/oz.

Sentiment Update
The mining sector regained momentum in August, lifted by a strong rebound in precious metals. Gold prices bounced back to record levels after seeing a dip over the last two months, while silver surged as it surpassed $40/oz on the back of industrial demand and continued investment inflows. Copper held steady in the mid-$4/lb range after the sharp swings last month tied to tariff developments. Broader market resilience also played a role, as U.S. GDP growth was revised higher in Q2, signalling strength in the economy despite President Trump’s tariffs. Against this backdrop, expectations for potential Fed rate cuts, persistent inflation, coupled with sustained demand for critical minerals fueled improved investor sentiment this month.

Gold was up 5.3% in the month, as it reached the $3,500/oz mark, and silver was up 7.1%, continuing to surge for the fourth consecutive month. Equities outperformed the already impressive commodity prices with the GDX up 22.2%, GDXJ up 24.6%, SILJ up 22.9%, and CPOX up 15.8%, massively outperforming the broader markets like the S&P 500 and TSX up 2.2% and 4.8%, respectively. We are finally starting to see multiple expansion in the sector, as gold has cemented its position >$3,000/oz. The other metals and commodities remained fairly mixed, with the best performers being molybdenum (+14%) and lithium (+9%), while the worst performer was steel (-5%).

On August 12th, U.S. inflation came in at +2.7% YoY and +0.2% MoM, below the consensus of +2.8% YoY and in line with the consensus of +0.2% MoM. This compares with the U.S. Core inflation data, which came in at +3.1% YoY and +0.3% MoM, above the consensus of +3.0% YoY and in line with the consensus of +0.3% MoM. Inflation in Canada came in at 1.7% YoY, below the consensus, while core inflation came in at 2.6% YoY, compared to last month at 2.7% YoY.
Underlyings
ALLEGIANT GOLD

Amerigo Resources Ltd.

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.

ANDEAN PRECIOUS METALS CORP

CAPITAN SILVER CORP

Copper Fox Metals Inc.

Copper Fox Metals is engaged in the exploration for and development of mining properties in Western Canada.

DYNACOR GROUP INC.

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.

Exploits Discovery Corp.

Forge Resources Corp.

Giga Metals

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

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.

MOON RIVER MOLY LTD

NAMIB MINERALS

OMAI GOLD MINES CORP

Rio Tinto plc

Rio Tinto is engaged in finding, mining and processing mineral resources. Co. has four product groups: iron ore, which supplies the global seaborne iron ore trade; aluminium, which includes bauxite mines, alumina refineries, and aluminium smelters; Copper and Diamonds, which has managed operations in Australia, Canada, Mongolia and the U.S., and non-managed operations in Chile and Indonesia, with by-product including gold, silver, molybdenum and others such as sulphuric acid, rhenium, and lead carbonate; and Energy and Minerals, which comprises mining, refining and marketing operations across borates, coal, iron ore concentrate and pellets, salt, titanium dioxide and uranium sectors.

Sailfish Royalty Corp.

Santacruz Silver Mining

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).

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

Other Reports on these Companies
Other Reports from Atrium Research Corporation

ResearchPool Subscriptions

Get the most out of your insights

Get in touch