Global financial wobbles reinforced the case for gold this week
Global financial wobbles reinforced the case for gold this week but the uncertainty factor caused by the US sharemarket shake-out put a dampener on most sectors of the market and only a handful of gold miners managed to post gains while just about everything else fell.
Surprise star of the week was Dacian Gold, a stock that some investors had written off weeks ago after operational problems at its Mt Morgans mine. It added 14c to $1.26, taking its gain since early June to 87c and putting it within sight of its pre-sell off price of $1.59.
ASX-listed RBR Group has started training prospective workers for jobs that will become available at Mozambique’s emerging liquefied natural gas (LNG) projects (reports South Africa’s Engineering News).
As part of its strategy to assess, train and provide workers for the LNG projects, the labour and training specialist has opened a training centre in Palma, Mozambique, which is located close to the LNG construction sites.
Lucapa Diamond Company and its partners have generated A$8.8 million in the latest round of diamond sales from the Lulo alluvial operation in Angola and the Mothae kimberlite mine in Lesotho, taking total sales for the year to date just above $50 million (reports MiningNews)
Lulo sales totalled $6.3 million from a run of mine parcel of 3558 carats for an average of $1768/ct.
Total Lulo sales of 9582ct generated $37.4 million at an average price of $3899/ct in 2019.
Lucapa is 40% owner and operator of the mine.
Rare earths and potash returned to the winner’s circle this week as the first whiff of a correction wafted across the gold and iron ore sectors
Rare earths and potash returned to the winner’s circle this week as the first whiff of a correction wafted across the gold and iron ore sectors, while two industry leaders, BHP and Rio Tinto, paid a heavy price for annoying their supporters.
On a “follow-the-money” basis, it was hard to overlook the flow of funds into two emerging rare earth companies, Arafura and Northern Minerals, which attracted $30 million and $23.2 million respectively to advance their projects.
Centaurus Metals isn’t the only company dusting off an old iron ore project in light of the surging price for the steel-making commodity (reports The West Australian).
But it probably has a better chance than most, in bringing its Jambreiro project in south-eastern Brazil into production.
High purity alumina (HPA) supply will not meet estimated demand over the next decade — even if every project in the pipeline goes into production (reports Stockhead).
Last year, HPA was a niche industry building some momentum as analysts predicted a lithium-ion battery charged shortfall. That’s because one of HPA’s fastest growing uses is coating the separators that keep apart the cathode and anode electrodes in lithium-ion batteries:
Last week, a report by CRU acknowledged that previous demand predictions were too conservative.
Iron ore and gold marched higher this week for different reasons
Iron ore and gold marched higher this week for different reasons and while a continuation of gold’s upward move seems assured, the first sign of an end to the iron ore boom came in the form of a forecast from a big bank that the commodities super-cycle has returned.
Westpac, Australia’s oldest bank, said growth in the domestic Chinese economy coupled with the rise of India and Indonesia seemed poised to launch the next phase of the super cycle.
Strategic metals company TNG Limited has signed a binding heads of agreement with the operator of the Darwin to Tarcoola rail line, Genesee & Wyoming Australia, to haul material from the Central Australian Mount Peake mine more than 1100km to a processing facility in Darwin (reports The Sydney Daily Telegraph).