23rd April 2021
Well, it’s Friday, so apart from thinking about after-work beers, that means it’s time for a weekly round-up from Spotlight! Jane Lockwood here, I’ve taken over the newsletter and I’d love to hear any thoughts or suggestions you have for it! Feel free to get in touch through email@example.com.
This week in our Latin American newsletter (click to subscribe if you’re missing out!) I talked about the high copper price and where it might be headed. One thing that could affect it in the longer term is new supply, and Ecuador is in a position to capitalise if it makes the right moves now. With similar large-scale geology to copper giants Chile and Peru, there’s potential for a major new copper player in South America, and the small country also has significant proven gold potential. This is all of interest right now because, in a surprise victory, business-friendly candidate Guillermo Lasso was triumphant in Ecuador’s presidential elections last week, and investors have certainly perked up. If you want to find out more about what this means for mining, have a look at my article in The Prospector here.
In addition to copper, rare earth prices are on a prolonged rally after their spike in December last year. This is partly being driven by a surge in interest in electric vehicles, especially sports cars, according to mining.com. It was an interesting week for battery metals and rare earths generally, especially those companies in the Australian market. Lynas Rare Earths (ASX:LYC), the only producer of separated rare earths outside China, saw a sharp drop in its share price as supply difficulties only partially associated with COVID-19 continued to plague the company. And in the biggest mining deal this year to date, Australian lithium miners Orocobre (ASX:ORE) and Galaxy Resources (ASX:GXY) have agreed to an equal merger, creating a company that would be worth $4 billion AUD and the 5th largest lithium outfit in the world. Both are active in the South American lithium world, with Galaxy also bringing Australian and Canadian assets to the deal.
It’s an interesting time to be involved in interesting metals.
Around the Traps
The biggest news in junior mining this week was the listing of Goldplay Mining (TSXV:AUC) on Wednesday. After listing at $0.18 CAD, shares hit a high of $0.20 CAD and at the time of writing they are sitting comfortably at $0.185 CAD. Goldplay has its flagship Scottie West gold project in British Columbia’s Golden Triangle, as well as the past-producing Borba 2 gold-copper project in Portugal. To see what CEO Catalin Kilofliski had to say to Investing News Network about the successful listing, click here.
Mammoth Resources (TSXV:MTH) has also had a big week, with the company announcing more good news from its infill geophysical survey. Last week they reported a strong correlation between surface gold-silver anomalies and geophysical results, and this week’s news extends that correlation over new ground at their Tenoriba project in Mexico. For insights from their President and CEO, Thomas Atkins, via The Korelin Economics Report, click here.
In a blow for mining giant BHP (ASX, LSE, NYSE, JSE:BHP), a Chilean court has just made a second environmental ruling against its beleaguered Cerro Colorado mine, following complaints from local indigenous communities regarding overdrawing of water and waste management issues.
In better news for miners, Egypt has just made legislative changes to promote gold mining activity in the country, and it’s caused a real buzz amongst miners and investors. Let’s hope they find enough gold to decorate a Pharaoh’s tomb!
A mining newsletter wouldn’t be complete this week without mentioning that there’s a brawl going on over the fact that new Glencore CEO Gary Nagle will get a $10.4 million compensation package.
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