Metals & Mining Monitor | Metals Prices Continue to Climb; BHP Faces Deadline in Anglo Takeover Saga
Hello mooers! Check out the latest market dynamics of the metals and mining industry over the past week.
•Base metals: Copper prices hit record high
•Precious metals: Gold and silver prices rallied
•Bulk commodity: Iron ore prices rose 1.2%
•Base metals: Copper prices hit record high
•Precious metals: Gold and silver prices rallied
•Bulk commodity: Iron ore prices rose 1.2%
Spot Price Snapshot
Key Price Moves
$Gold Futures(AUG4)(GCmain.US$ and $Silver Futures(SEP4)(SImain.US$ prices rallied as investor demand for metals increases amid growing optimism that the US will cut interest rates this year. The US dollar has fallen, and Treasuries have rallied since data released on Wednesday showed that inflation in April eased more than expected. This has provided support for the precious metals, which do not pay interest and are priced in the greenback. As of May 17th, the spot price of gold was $2403/oz, up 1.3% in a week, while the spot price of silver was $29.7/oz, up 3.6% in a week, reaching 11-year highs. The prices are continuing to rise on this Monday.
$Copper Futures(SEP4)(HGmain.US$ has hit a new all-time high, continuing its strong rally driven by financial investors who have invested heavily in the market as they anticipate a deepening supply shortage. In early Monday trading, futures on the London Metal Exchange surged over 4%, pushing copper above $11,000 per ton for the first time. The market has seen numerous positive predictions, and $BHP Group Ltd(BHP.AU$'s attempt to acquire rival Anglo American is largely driven by its copper mines.
Nickel prices have recently surged and surpassed the USD 20,000 mark in after-hours trading on the LME on Thursday. As of May 17, the LME nickel spot settlement price closed at $20,735/ton, which is a 10.7% increase compared to May 10. This is mainly because New Caledonia, one of the top ten nickel-producing countries, has experienced large-scale riots and unrest, causing nickel smelters to shut down and affecting local nickel production. Additionally, the Ibrahimovic volcano in Indonesia has erupted multiple times, causing the local volcano and geological disaster research institution to raise the volcanic eruption warning level. Moreover, weak US employment data and the market's expectation of a Federal Reserve interest rate cut have boosted the market for base metals.
Top Company News
BHP Faces Deadline in Anglo Takeover Saga as it Debates Improved Bid
$BHP Group Ltd(BHP.AU$'s proposed acquisition of Anglo has caused a stir in the mining industry, with two of its biggest players going head-to-head in a public battle. Anglo has already rejected two non-binding proposals from BHP, citing valuations and complexity, and has instead presented its own restructuring plan. The onus is now on BHP to make a firm offer or wait for six months, under UK takeover rules. The deadline is set for 5pm London time on Wednesday.
Evolution Mining's FY25 Gold Output Expected to Exceed Estimates
Gold miner $Evolution Mining Ltd(EVN.AU$ is anticipated to set higher production guidance for FY25 than initially estimated, according to Macquarie analysts. The company's output is expected to increase next fiscal year, indicating production of at least 750,000 troy ounces for FY25. However, Evolution also anticipates higher all-in sustaining costs, which could face adverse pressure from labor and other cost inflation of around AUD 105 per ounce.
Alamos Gold Discovers High-Grade Gold Mineralization at Young-Davidson Mine
$Alamos Gold(AGI.US$ has reported positive results from its underground exploration program at the Young-Davidson mine, with the discovery of a new zone of higher-grade gold mineralization near existing infrastructure. The company plans to increase its exploration budget to $12 million in 2024 to further investigate and extend mineralization, with high-grade intercepts already identified close to current reserves. The findings highlight the potential for significant production growth at the Young-Davidson operation.
Zijin Mining Aims for 50% Growth in Copper Production by 2028
$ZIJIN MINING GROUP CO.LTD(ZIJMF.US$, a leading Chinese mining company, has revised its copper production targets for 2025 in response to rising copper prices. The company now aims to produce 1.22 million tons of copper next year, a 4% increase from its previous target. Bloomberg reports that the state-owned miner has ambitious plans to grow its copper output significantly by 2028, with production levels between 1.5 and 1.6 million tons. This represents a 50% increase from its 2023 figures.
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Source: moomoo, Trading Economics, Yahoo Finance, Wind
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