What you need to know:
• Precious metal prices were up substantially in October, rebounding from two months of consolidation, significantly outperforming broader markets which were down during the month. Other commodities and battery metals held in relatively flat.
• The price of uranium continued to perform well over the last month and resulted in significant equity financings.
• Deteriorating economic data leads us to believe we are approaching a long-awaited pivot after both the BoC and the Fed held rates in September/October.
Sentiment Update
Precious metal prices significantly outperformed in the month of October with gold up 8.6% to $1984.9/oz and silver up 8.5% to $22.9/oz. The gold and silver equities lagged the commodity performance, with the GDX, GDXJ, and SIL up 4.1%, 3.6%, and 0.5%, respectively, however, still outperformed broader markets such as the TSX and S&P500 which were down 3.4% and 1.9%, respectively. Other commodity prices continued to remain flat through the month of October, following two flat months in August and September. The battery metals space once again had a mixed month, showing no real trend as investors wait to see the effects that the quantitative tightening will have on the space.
Uranium continued to move higher following a breakout month in September (up 20%). The Uranium price ended the month up 4% at $73.0/lb. On the back of the elevated prices, we saw a substantial uptick in capital raises for uranium exploration and development. However, our long-term thesis on uranium still stands as none of these projects will add to the supply for upwards of 5 years. Find our research note on uranium here.
02 Nov 2023
Mining Monthly: October Edition
New Gold Inc. (NGD:TSE), 0 | Newmont Mining (NEM:NYSE), 0 | Newmont Corporation (NEM:NYS), 0 | Arizona Sonoran Copper Co., Inc. (ASCU:TSE), 0 | Artemis Gold Inc (ARTG:TSX), 0 | Endeavour Mining PLC (EDV:TSE), 0 | Ero Copper Corp. (ERO:TSE), 0 | First Quantum Minerals Ltd. (FM:TSE), 0 | Minera Alamos Inc. (MAI:TSX), 0 | Orezone Gold Corporation (ORE:TSE), 0 | Pan American Silver Corp. (PAAS:TSE), 0 | IAMGOLD Corporation (IMG:TSE), 0 | VICTORIA GOLD (VIT:TSE), 0
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Mining Monthly: October Edition
New Gold Inc. (NGD:TSE), 0 | Newmont Mining (NEM:NYSE), 0 | Newmont Corporation (NEM:NYS), 0 | Arizona Sonoran Copper Co., Inc. (ASCU:TSE), 0 | Artemis Gold Inc (ARTG:TSX), 0 | Endeavour Mining PLC (EDV:TSE), 0 | Ero Copper Corp. (ERO:TSE), 0 | First Quantum Minerals Ltd. (FM:TSE), 0 | Minera Alamos Inc. (MAI:TSX), 0 | Orezone Gold Corporation (ORE:TSE), 0 | Pan American Silver Corp. (PAAS:TSE), 0 | IAMGOLD Corporation (IMG:TSE), 0 | VICTORIA GOLD (VIT:TSE), 0
- Published:
02 Nov 2023 -
Author:
Ben Pirie -
Pages:
8
What you need to know:
• Precious metal prices were up substantially in October, rebounding from two months of consolidation, significantly outperforming broader markets which were down during the month. Other commodities and battery metals held in relatively flat.
• The price of uranium continued to perform well over the last month and resulted in significant equity financings.
• Deteriorating economic data leads us to believe we are approaching a long-awaited pivot after both the BoC and the Fed held rates in September/October.
Sentiment Update
Precious metal prices significantly outperformed in the month of October with gold up 8.6% to $1984.9/oz and silver up 8.5% to $22.9/oz. The gold and silver equities lagged the commodity performance, with the GDX, GDXJ, and SIL up 4.1%, 3.6%, and 0.5%, respectively, however, still outperformed broader markets such as the TSX and S&P500 which were down 3.4% and 1.9%, respectively. Other commodity prices continued to remain flat through the month of October, following two flat months in August and September. The battery metals space once again had a mixed month, showing no real trend as investors wait to see the effects that the quantitative tightening will have on the space.
Uranium continued to move higher following a breakout month in September (up 20%). The Uranium price ended the month up 4% at $73.0/lb. On the back of the elevated prices, we saw a substantial uptick in capital raises for uranium exploration and development. However, our long-term thesis on uranium still stands as none of these projects will add to the supply for upwards of 5 years. Find our research note on uranium here.