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.