Kitco NEWS Roundtable

Gold's run is having limited benefit for gold miners, noted mining audiences manager Michael McCrae.

On Saturday, McCrae recorded Kitco Roundtable.

After an impressive seven-day rally, which pushed prices to an all-time high of $2,203, the gold market could see some consolidation in the near term, writes editor Neils Christensen. Profit taking and the lack of any near term catalysts could dampen gold's run going forward.

Gold's run has had muted impact upon gold equities. Although gold companies are up 9% this month, they are still down for the year and more than half their all time high early last decade.

According to a report by Reuters, the Romanian government said on Friday it won an arbitrage trial filed by Canada's Gabriel Resources (GBU.V). The company planned to build Europe's largest open pit gold mine in the western Romanian town of Rosia Montana.

Gabriel Resources had sought at least $4.4 billion in damages from Romania.

Both copper and gold were higher this week with signs that the Fed may be easing as soon as June.

On Saturday mining audiences manager Michael McCrae recorded Kitco Roundtable with correspondent Paul Harris.

Gold recovered after tumbling mid week due to a hotter than expected CPI number, noted mining audiences manager Michael McCrae.

On Saturday McCrae and Kitco correspondent Paul Harris recorded Kitco Roundtable.

On Tuesday the Labor Statistics said that its Consumer Price Index rose 0.3% in January, higher than the Consensus forecasts of 0.2% increase. Markets tumbled and gold dropped below the 2000 level.

The week started with a tragic mine accident in Turkey. SSR Mining suspended production at its Copler mine after a landslide resulted in at least nine miners missing.

New Gold announced a big production update this week, noted mining audiences manager Michael McCrae.

On Saturday, McCrae recorded Kitco Roundtable with correspondent Paul Harris.

New Gold reported that consolidated gold production is expected to increase by approximately 35% from 2023 to 410,000 to 460,000 ounces in 2026 driven by increasing production profiles at both Rainy River and New Afton as growth projects are completed in the near-term. The company still sold off in a down market for gold miners, off 6% for the week to $1.58 a share.

New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine.

The other precious metal, silver, shows promise. According to Christopher Vecchio, Head of Futures & Forex at Tastylive.com, the metal is near a year low. It also does well during periods of volatility. The U.S. is heading into an election year. The congress is also setting up for a budget fight.

Metals traded lower end of week when jobs data came in stronger than expected, noted mining audiences manager Michael McCrae.

On Saturday McCrae recorded Kitco Roundtable with Kitco correspondent Paul Harris.

On Friday jobs data showed the U.S. economy created a whopping 353,000 jobs last month, significantly beating expectations. Markets see only a 20% chance of a rate cut in March, and they have pared back expectations for a rate cut in May.

Copper spiked mid-week, nearing $4 pound to settle back where it started, due to the strong job's number. Gold finished the week near the 2050 level, mostly flat for the week.

In mining news British Columbia's Nisga'a Nation is establishing Canada's largest majority Indigenous-owned public company. The new royalty company includes mining heavy hitter Frank Giustra, who will be strategic advisor to the newly-formed Nations Royalty.

The copper market is setting up nicely and prices for the metal should head higher, noted Kitco correspondent Paul Harris.

On Monday Harris, mining audiences manager Michael McCrae and Soar Financial CEO Kai Hoffmann recorded Kitco Roundtable at the Vancouver Resource Investment Conference.

Harris noted that copper supply is starting to dwindle, while energy transition is increasing demand.

The three panelists also noted the downbeat mood at the first major mining show of 2024, as resource companies hope to turn the page on a mostly forgettable 2023.

A Chinese miner made a large investment into a Latin American copper developer, noted Kitco correspondent Paul Harris.

On Saturday Harris and mining audiences manager Michael McCrae recorded Kitco Roundtable.

Earlier this week Solaris Resources announced a $130 million strategic investment by Zijin Mining Group. Solaris is advancing its Warintza project, a high-grade open pit copper resource in Ecuador.

McCrae noted that both gold and copper were under pressure due to a hawkish turn by the Federal Reserve.

Uranium leaped to a new high, noted mining audiences manager Michael McCrae.

On Saturday McCrae and Kitco correspondent Paul Harris recorded Kitco Roundtable.

Uranium traded as high as $100 this week according to pricing data provider UxC. The metal is has tripled in the past two years. Uranium was propelled higher when mining giant Kazatomprom announced a production shortfall of the metal due to lack of sulphuric acid needed for production.

Gold has had a solid year, overcoming the Fed's higher interest rate regime, noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

Spot gold managed to finish the final trading day of 2023 in the 2060 range, up about $200 from the start of the year.

In mining news top ten gold miner, Agnico Eagle (NYSE: AEM), announced today it was investing $23.12 million in Canada Nickel Company (TSXV: CNC). Agnico will own about 12% of the Ontario-focused, early-stage nickel company.

On Friday gold prices fell on strong job numbers from the U.S., noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

Friday was jobs day. The U.S. economy created 199,000 jobs last month, beating expectations. At the same time, the unemployment rate dropped to 3.7%, down from 3.9% in October.

The strong economy implied that the Fed is further away from easing. On the news gold prices hit a two-week low and silver a three-week.

According to some analysts, Monday's rally and subsequent selloff was not helpful for gold's long-term price action.

In mining news depressed platinum prices have forced miners to lay off workers.

Anglo American is preparing to freeze spending on growth and widen job cuts in South Africa. Reuters reports that the miner is preparing to mothball some high-cost platinum mines.

Last week Sibanye-Stillwater, the other major platinum producer, said it was cutting about 100 employees and 187 contract workers at its Stillwater West mine in Montana

Platinum prices have declined 11% for the year.

Gold finally hit a record high, and the copper markets had a big supply shock, said mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

February gold futures last traded at $2,091.90 an ounce, up more than 4% from last Friday's close. Gold's previous record was at $2,089.20 in August 2020, wrote Kitco editor Neils Christensen.

Gold is seeing renewed buying momentum as markets continue to price in a potential rate cut as early as March. The precious metal's rally comes even as the central bank maintains its tightening stance. Friday, Federal Reserve chair Jerome Powell said that he is still not confident monetary policy is sufficiently restrictive enough to bring down inflation to 2%.

In mining news, First Quantum was the story. Panama's top court declared that First Quantum's contract with the government to operate a key copper mine was unconstitutional. Panama's president, Laurentino Cortizo, then closed the mine.

First Quantum is a top 10 copper miner.

To end the week gold has spent much of the time trading above $2,000 a ounce, noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

After the good CPI numbers earlier this month that may allow the Fed to stop hiking, gold has found room to rise.

Notable economic number this week were the the S&P Global Flash U.S. manufacturing and services PMI.

Manufacturing contracted while services expanded. Bottomline is that the numbers put the U.S. economy at neutral.

Copper was up again this week, nearing the $3.80 lb point. Supply disruptions favored the metal, which segues to mining news.

In mining news, First Quantum is facing supply disruptions and a looming court decision.

Protestors in Panama are blocking supplies from reaching the mine. Without relief, the company warned that production could be halted.

The mine also faces legal challenges. It's recently signed mining contract it signed with the government is being challenged in the supreme court. A decision is expected in the coming days or weeks. A majority of lawyers surveyed by Reuters said
the Supreme Court is likely to rule against the company, citing a precedent.

Commodities and markets were up this week off the good consumer price index report, which came in below market expectations, noted mining audiences manager Michael McCrae.

On Saturday McCrae recorded Kitco Roundtable.

The GDX, a index of gold miners, was up 5% on the week. The S&P was up half that amount. Gold added about $40 for the week to end at the 1980s range.

Mid-week consumer price index report was below Wall Street estimates, which sparked a major rally on Wall Street. The core CPI rose 0.2% and 4%, against the forecast of 0.3% and 4.1%. The annual rate was the smallest increase since September 2021, according to CNBC.

Copper was up 4% this week. Even better for miners is that oil prices were mostly flat on the week with WTI trading in the mid 70s.

The big mining news from the start of the week is when Glencore bought 77% of Teck Coal Business for $6.93 Billion. Nippon Steel took the remaining portion.

In a news release Jonathan Price, President and CEO, Teck. said the sale will ensure Teck is well-capitalized and able to
realize value from its base metals business and re-focus Teck as a Canadian-based critical minerals champion

Commodities traded down this week after the Federal Reserve Chair Jerome Powell made hawkish remarks at a news conference.

On Sunday mining audiences manager Michael McCrae recorded Kitco Roundtable.

Powell warned markets that although inflation has come down from last year’s 40-year highs, the Fed still has work to do. He said that the central bank is not “confident” that it has inflation under control enough to shift its current tightening bias, according to reporting by editor Neils Christensen.

Powell also said that the Federal Reserve wouldn’t hesitate to raise interest rates if inflation pressures start to rise again.

Gold investors did not like Powell’s latest message to financial markets as prices have dropped below support at $1,950 an ounce and ended the week down nearly 3% from last Friday.

Copper followed gold down, too. The metal was off nearly 3% after last week's rise. It traded at $3.60.

De Beers sales plunge in ninth cycle of 2023, which was $80M lower than the same cycle a year ago. Al Cook, CEO of De Beers, commented, "Macro-economic challenges continue to affect the diamond sector. The retail recovery in China remains slow.

Gold is deferring a break higher, noted mining audiences manager Michael McCrae.

On Saturday McCrae recorded Kitco Roundtable with correspondent Paul Harris.

Key economic news this week was the jobs report. Non-farm payrolls number come in at up 150,000 versus market expectations of 170,000. The report fell into the camp of the U.S. monetary policy doves, who want the Federal Reserve to stop raising interest rates.

Gold was helped but not much. Spot gold finished the week at $1,998 ounce.

Gold’s inability to convincingly break above $2,000 an ounce is creating some cautious sentiment in the marketplace, with some analysts saying that prices might need to consolidate in the near term before the precious metal takes a run at its all-time highs, wrote Kitco editor Neils Christensen.

In mining news Harris noted that Ero Copper agreed with Vale to enter into an earn-in agreement for a 60% interest in the Furnas copper project.

A Fed rate-hike pause at next week's FOMC meeting is likely, noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable with correspondent Paul Harris.

Also noted during Roundtable was Piedmont Lithium and partner Atlantic Lithium obtaining permits for the Ewoyaa project in Ghana.

War worries and a possible end to Fed tightening are some of the reasons gold is rebounding, noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable with correspondent Paul Harris and QC Copper & Gold CEO Stephen Stewart.

The gold price has been on an unstoppable move higher when war fears entered the marketplace last week, that according to Kitco contributor David Erfle. Despite the U.S. 10-year bond yield rising to 5%, the safe-haven metal has risen from $1825 just two weeks ago to move closer to the key $2000 level notching up an impressive gain of 9%, so far this month.

Adding to support is the Federal Reserve. At the Economic Club of New York Thursday, Fed Chair Jerome Powell reiterated his stance that interest rates will have to be higher for longer, but he provided little new guidance on monetary policy heading into year-end.

Analysts have noted that the gold market has priced in a lot of bad news already, and the Federal Reserve, near the end of its tightening cycle, should not provide the same headwinds for the precious metal, wrote Kitco's Neils Christensen.

Stewart's QC Copper & Gold (TSXV: QCCU) is focused on acquiring and developing copper projects in Quebec. The company is focused on its Opemiska property. A maiden resource estimate for the property showed 81.7M tonnes @ 0.88% CuEq of pit constrained measured and indicated mineral resources and 21.3M tonnes @ 0.73% CuEq of inferred mineral resources.

"Historically speaking, billions and billions of pounds of copper have come out of Quebec," said Stewart.

The set up for copper looks good, said EMX Royalty CEO David Cole.

On Friday Cole recorded Kitco Roundtable with mining audiences manager Michael McCrae.

With the Federal Reserve looking to be near the end of its tightening cycle and geopolitical concerns, the vice-grip that monetary policy has exerted on gold through most of 2023 is starting to weaken, giving the market room to run.

After hitting a seven-month low a week ago, the precious metal is seeing its best weekly gains since mid-March, noted Kitco's Neils Christensen. Prices are over $90 higher than last week's closing price, with December gold last trading at $1,941.50 an ounce, and are up more than 6% from last week's lows.

EMX Royalty (TSX-V:EMX) is a precious, base and battery metals royalty company. Some highlight assets are Timok Magmatic Complex in Serbia and Caserones, a copper and molybdenum mine in Chile. The company asset mix is 56% gold and 22% copper.

"I do expect the copper side of that equation to continue to increase with our exposure to Caserones..operated by Lundin Mining and of course Timok," said Cole. "Those are two generational copper assets with very long lives within our portfolio. Generally speaking, we love the metals across the periodic table and are happy to be exposed to them all, but if you ask me what my favorites are I'd say that copper is the most strategic."

3:00 - Focus on royalties
4:00 - More deal flow for royalty and streaming companies during a downturn
4:33 - Timok settled dispute
5:20 - Asset mix at EMX Royalty

Many commodities were routed in October, noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable with Kitco correspondent Paul Harris.

Gold prices dropped to a fresh seven months below after data showed that the us economy created 336,000 jobs last month, significantly beating the market's expectations. However, according to some analysts, disappointing wage growth and an unchanged unemployment rate gives the federal reserve room to leave rates on change next month.

And with that gold recovered slightly and finished the week in the 1840 range, copper traded lower this week to hitting its lowest point since May. The big commodity surprise was oil. Early this month, oil looked like it might crest $100 a barrel prices, but prices retreated sharply, and now a barrel can be had for the low 80s.