Which way? Metals

Discussion in 'Commodity Futures' started by themickey, Dec 10, 2020.

  1. Overnight

    Overnight

    Interesting how they (the country) establish their safety protocols. I don't know the zoom of that lens, but the videographers are sitting right next to an airport with commercial jets. You can hear it in the background. So what if the whole damned place blew up? Blown-up jets too? (Well, not really, but it's the point of having a hazardous mining operation so close to a commercial airport).

    Mickey, let's face it...It's sabotage!



    Time to buy copper futures? Woooooooo!
     
    #161     Oct 6, 2021
    themickey likes this.
  2. themickey

    themickey

    Industrial metals blast off as energy crisis drags down supply
    MINING.COM Staff Writer | October 15, 2021
    https://www.mining.com/industrial-metals-blasting-off-with-energy-crisis-dragging-down-supply/
    [​IMG]
    Credit: Nyrstar

    The world’s most crucial metals continued to surge higher on Friday, with zinc recording the biggest daily gain in six years after hitting a 14-year high Wednesday and aluminum holding near a 13-year high, as energy shortages continue to disrupt the global supply chain.

    Producers of industrial metals from zinc to aluminum are restricting output as rising energy costs outpace the spike in metal prices, or because of power restrictions in key economies such as China.

    [​IMG]

    “As most metals are in backwardation and physical demand high, the ingredients are there for materially higher prices, most notably in aluminum and zinc but also permeating into the copper and tin market,” said Kieron Hodgson, an analyst at Panmure Gordon in a Bloomberg report.

    “It is increasingly likely these prices may persist throughout the fourth quarter before the inevitable return-to-earth occurs.”

    The latest victim was global miner and metals trader Glencore, which saw zinc production at its three European plants being cut due to surging power prices. This follows an earlier announcement that Nyrstar — another big producer — intends to reduce output at three European smelters by up to 50% due to rising power prices and costs associated with carbon emissions.

    Zinc spiked as much as 12% on the London Metal Exchange (LME) in response, the biggest increase since October 2015. The industrial metal is now sitting at its highest since 2007, with pressure continuing to pile on manufacturers following the wave of smelter shutdowns across Europe.

    Aluminum, which is particularly energy intensive, also gained on Friday, taking this year’s advance to 62% this year. Earlier this week, aluminum rallied to its highest since 2008 as the deepening power crisis squeezed supplies of the metal used in everything from beer cans to iPhones.

    Last month, analysts at Goldman Sachs and Citigroup boosted their price outlooks for aluminum, citing smaller output from China and tighter fundamentals for metals across the globe.

    Matalco Inc., the largest US producer of aluminum billet, is also warning customers it may curtail output and ration deliveries as soon as next year amid a magnesium shortage.

    Friday’s gains come after the benchmark index of six base metals on the LME rose to an all-time peak on Thursday. Year-to-date the LMEX index has gained 35%.

    (With files from Bloomberg)
     
    #162     Oct 16, 2021
  3. themickey

    themickey

    Nickel is another metal which is high energy demanding.
    I do not trade nickel stocks or ETF's, never found one I liked, ditto aluminium, zinc, tin.
     
    #163     Oct 16, 2021
  4. Nine_Ender

    Nine_Ender

    Monday is a key indictor for Copper, Silver, Gold moving forward. We could see continued strength, a drop in all three, or a continued reversal in just Gold. In recent weeks, Copper is super strong, Silver correlated with index moves ( but the stocks more bullish then the underlying ), and Gold stopped countering broader markets ( oversold stocks moderately bullish at times ).

    I went with a combo that is more bullish on broader markets for Monday ( 2 copper miners, 3 silver miners, 1 gold miner ). Last week I carried a massive overweight in Copper miners but took profits late week. Sold most of my Gold exposure on Thursday which ended up being a moderately good call. I suspect holding some more of the Copper positions would have been wise but we'll see.

    I remain overweight Oil producers which reduces my potential to carry all the miners I like. 14% of my account in cash though may find a home first thing.
     
    Last edited: Oct 17, 2021
    #164     Oct 17, 2021
    themickey likes this.
  5. themickey

    themickey

    Uranium is my choice atm, holding two positions and will buy one further possibly this week (just hoping U pulls back just a bit more, not sure if I can guess the bottom on current PB.)
     
    #165     Oct 17, 2021
  6. Nine_Ender

    Nine_Ender

    I've not really followed Uranium since Cameco crashed on the Japan tsunami and I was contemplating buying 2 sets of puts on it at the close the day before ( on an inkling it may drop ). Buying them would have made me 40-50K the next day. I'm not sure why the stock held up that day then crashed hard the next other then it took market a while to process the news.
     
    #166     Oct 17, 2021
  7. themickey

    themickey

    Battery battle: nickel miner picks Twiggy Forrest’s ‘superior’ offer in race with BHP

    By Nick Toscano October 19, 2021

    Billionaire Andrew “Twiggy” Forrest’s Wyloo Metals has struck a deal to buy Canadian nickel miner Noront, raising the prospect of a bidding war with BHP as demand for electric battery raw materials intensifies.

    The board of Toronto-listed Noront on Monday said it had agreed to Wyloo’s offer of C70¢ compared to BHP’s C55¢ offer in July, and would give BHP five business days to match.

    [​IMG]
    Fortescue founder Andrew “Twiggy Forrest’s privately owned Wyloo Metals has upped its bid to acquire a Canadian nickel miner.Credit:Dominic Lorrimer

    “The Noront board of directors has determined that Wyloo Metals’ proposal represents superior value for our shareholders, compared to the offer by BHP,” Noront chief executive Alan Coutts said.

    The tussle for Noront is the latest sign of mining heavyweights’ accelerating efforts to secure supplies of electric battery ingredients such as nickel and lithium ahead of an expected surge in demand from the electric vehicle revolution.

    Noront has a significant claim in one of Canada’s largest potential mineral reserves, the largely undeveloped “Ring of Fire” region in northern Ontario.

    Wyloo Metals, wholly owned by Dr Forrest’s investment vehicle Tattarang, said it bid to acquire all Noront’s remaining shares would “revitalise” Noront under the leadership of a world-class board of directors led by Dr Forrest as chairman.

    “The Ring of Fire is a long-term mining district with a present-day value that is impossible to accurately quantify,” Wyloo Metals chief executive Luca Giocavazzi said. “Only the Wyloo Offer can provide Noront shareholders with comfort in the knowledge that they have received sufficient optionality and value for their ownership of Canada’s next great mineral hub.”

    In August, BHP chief development officer Johan van Jaarsveld said the company would consider its options if a compelling offer from Wyloo materialised.

    “We have the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle’s Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations, and Ontario for years to come,” he said.

    BHP’s main commodities are iron ore and copper, but it is seeking to expand its exposure to what it refers to as “future-facing” commodities that will be increasingly required to power the clean-energy age, electrify transport and feed a fast-growing global population.

    In August, it agreed to sell its global oil and gas division to Australia’s Woodside Petroleum, partly to free up its ability to increase spending on nickel and copper, two of its most immediate growth priorities. It has relocated its global exploration headquarters to Toronto from Santiago, Chile, and intends to nearly double its exploration spending within five years.
     
    #167     Oct 18, 2021
  8. themickey

    themickey

    Fast-growing Canadian-listed Vox Royalty Corp at the forefront of the royalty sector
    By Imelda Cotton October 19, 2021 https://smallcaps.com.au/fast-growing-canadian-listed-vox-royalty-corp-forefront-royalty-sector/
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    Vox Royalty Corp has five producing royalties with this number expected to organically increase to 10 by the end of 2023.

    High-growth precious metals focused royalty company Vox Royalty Corp (TSX-V: VOX) has quickly become the second largest public holder of hard rock mining royalties in Australia.

    Vox currently has 37 of its 55 royalties in Australia and has completed more royalty acquisitions in the country over the last five years than any other company in the sector.

    Royalty model
    The royalty model has generated superior returns over the better part of the last two decades and has become an increasingly popular investment vehicle offering exposure to the mining sector without the risks associated with directly taking a position in mining companies.

    Vox typically receives unlimited exploration upside on the properties it holds royalties over and several of its investments have gone on to realise increases of more than 100% in resource and reserve sizes since the initial position was staked.

    As a royalty holder, Vox is not obligated to fund the mining operations, with that responsibility left to the operators raise capital to fuel growth.

    However, Vox pointed out the royalty interest remains undiluted.

    This function works in the favour of the royalty company as continued upside exposure is realised at no further cost.

    “Vox is the most notorious royalty acquirer in Australia,” Vox’s executive vice president (Australia) Riaan Esterhuizen told Small Caps.

    “Our people (three Australians on our senior executive team), alongside industry leading intellectual property in the form of a proprietary database of 8,000 royalties has given us unique capabilities in sourcing Australian royalties and helping royalty holders unlock value in their non-core assets,” he added.

    Current producing royalty assets
    Vox holds royalties over five producing operations with that number expected to grow quickly nearing double digits by the end of 2023.

    Presently royalty revenues are generated from four (soon to be five) operating mines, including, Janet Ivy, the Koolyanobbing iron ore mine (operated by Mineral Resources, ASX: MIN), and the Higginsville (Dry Creek) gold mine (operated by Karora Resources, TSX: KRR), all three of which are in WA.

    Royalties from other regions comprise the Brauna diamond mine in Brazil (Lipari Mineração Ltda); and the Segilola gold project in Nigeria (Thor Explorations, TSXV: THX), which recently announced the achievement of commercial production.

    Significant growth in net asset value and eventually revenue is expected from Vox’s other Australian assets including: Silver Mines’ (ASX: SVL) Bowdens silver project (0.85% gross revenue royalty); Kalamazoo Resources’ (ASX: KZR) Ashburton gold project (1.75% gross revenue royalty, post 250,000oz); Norton Gold Fields’ Bullabulling gold project (A$10/oz royalty, post 100,000oz); Alamos Gold’s (TSE: AGI) Lynn Lake gold project (2% gross proceeds royalty, post initial capital recovery); Gold Standard Ventures’ (TSX: GSV) South Railroad gold project (0.633% net smelter return royalty); and Valore Metals Corp’ (TSX-V: VO) Pedra Branca PGM project (1% net smelter return royalty).

    Resources portfolio
    Vox’s royalty portfolio currently comprises a total of 35Moz of gold-equivalent associated resources.

    The portfolio is mainly exposed to safe mining jurisdictions with 80% of its royalties covering projects in either Australia, Canada or the USA.

    A total 21 of Vox’s assets are at the preliminary economic assessment, feasibility, or care and maintenance stage.

    Meanwhile, 27 assets have JORC or NI43-101 compliant resources and three have historical resource estimates.

    Approximately 165,000m of drilling is expected to be completed before year-end across 18 of Vox’s royalty assets, based on operator disclosure, with operators actively advancing towards development.
     
    #168     Oct 18, 2021
    vanzandt likes this.
  9. themickey

    themickey

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    #169     Oct 18, 2021
  10. themickey

    themickey

    Green bidding war: BHP outbids ‘Twiggy’ Forrest in Canadian nickel miner battle

    By Nick Toscano October 20, 2021

    Mining giant BHP has raised its offer to buy Canadian nickel miner Noront Resources, trumping the latest bid from Australian billionaire Andrew “Twiggy” Forrest.

    Just a day after the board of Toronto-listed Noront recommended shareholders accept the C70¢-a-share offer from Dr Forrest’s Wyloo Metals, its chief executive Alan Coutts said it now supported BHP’s offer after it raised its bid from C55¢ to C75¢-a-share.

    [​IMG]
    BHp, the world’s biggest mining company, is seeking to expand its exposure to electric-batter raw materials such as nickel.Credit:Trevor Collens

    “This transaction provides a premium to Wyloo’s offer, and delivers certainty of value to Noront shareholders via an all-cash offer,” Noront chief executive Alan Coutts said......
    More @ https://www.smh.com.au/business/com...dian-nickel-miner-battle-20211020-p591jp.html
     
    #170     Oct 19, 2021