Mining Monthly: September Edition
What you need to know:• In September, gold rose 10.8% to approach $3,900/oz and silver surged 14.4% toward $46/oz, marking five straight months of gains.
• Mining equities strongly outperformed, with GDX, GDXJ, SILJ, and COPX up 20.9%, 23.7%, 23.9%, and 20.1%, respectively, versus the S&P 500 (+3.4%) and TSX (+5.1%).
• Sector momentum was reinforced by the Fed rate cut, record financing activity among juniors, and the announcement of the $53B Teck–Anglo American merger, the largest deal in over a decade.
The mining sector continued to experience strong momentum in September, driven by surging metal prices. Gold climbed to new record highs, currently sitting above $3,850/oz, while silver approached near-record territory, currently at $46/oz, approaching record highs of $49/oz last seen in April 2011. Investor confidence was further boosted by the U.S. Federal Reserve’s 25-bps rate cut in mid-September, reinforcing expectations for continued monetary easing and economic stimulus through the end of the year. Copper is also advancing to nearly $5/lb, benefiting from a combination of global economic recovery and tightening supply. Financing activity in the sector reached record levels, particularly among junior mining equity raises, which fueled a rally among juniors during the month. September also saw the largest transaction in more than 10 years, as Teck Resources and Anglo American unveiled a $53B merger, creating a global leader in critical minerals with an emphasis on copper (see the ‘major news’ section for more details).
Gold climbed 10.8% in the month, approaching the $3,900/oz level, while silver surged 14.4%, extending its rally to a fifth consecutive month. Mining equities outpaced the metals, with GDX up 20.9%, GDXJ up 23.7%, SILJ up 23.9%, and CPOX up 20.1%, all far ahead of broader benchmarks like the S&P 500 (+3.4%) and TSX (+5.1%). Other metals and commodities were mixed, led by palladium (+8%) on the upside and lithium (-8%) on the downside.
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).
Spanish Mountain Gold is an exploration stage company engaged in the acquisition, exploration and development of mineral properties.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.