|Day's Range||2.7370 - 2.7355|
Zambia plans to strip Vedanta-controlled Konkola Copper Mines (KCM) of its mining licence and bring a new investor into the operation, in a move likely to stoke international miners' concerns about rising government intervention in the sector. Zambian President Edgar Lungu announced the plan on Monday, which his spokesman said followed a number of breaches of the terms of the licence, without giving details. Zambia, Africa's second-biggest copper producer, has also proposed tax changes that Lungu says he will push through, despite opposition from international miners which say they will deter investment that Zambia desperately needs.
Zambia’s Eurobond yields surged to a record high and the currency hit a 3 1/2-year low. Zambian President Edgar Lungu is escalating a spat with miners including Vedanta Resources Ltd. and Glencore Plc over the share of royalties the country collects from the extraction of its vast reserves of copper. Nationalizing the assets raises the risk of possible disruptions in an already tight copper market, according to Colin Hamilton, the managing director for commodities research at BMO Capital Markets.
Malaysia's non-ferrous metals players are joining forces to promote their scrap processing business as clean amid growing environmental alarm over recycling, seeking to cling on to a trade that has grown fast as China's import curbs divert more scrap towards Southeast Asia. "We will set up a Malaysian non-ferrous metal association to promote Malaysia to become a centre for the non-ferrous industry in Southeast Asia," Eric Tan, director of SDM Speciality Chemicals Sdn Bhd., said on Monday.
Franco-Nevada (FNV) poised to benefit from mining operations, solid performance of Oil & Gas and focus on acquisitions, despite volatile gold prices.
Gold is trading positive on Wednesday amid risk aversion. Silver and other metals are mixed. The market is waiting for trade war clarifications.
St Barbara's C$2.90 a share cash offer represents a 39% premium to Atlanta Gold's closing price on Tuesday in a deal that analysts said opened up growth options, but could lead to a call on capital and crimp dividends. The bid, which has the backing of Atlantic's board, comes after Australian gold miner Newcrest Mining Ltd bought a copper and gold mine in Canada for $806.5 million in March and said it had the firepower for more acquisitions. Australian dollar denominated gold is just shy of January's record of A$1,894 an ounce and up about 9% from a year ago, while U.S. dollar gold is virtually flat.
Australian gold miner St Barbara said on Wednesday it will buy smaller Canadian peer Atlantic Gold Corp for C$722 million ($536 million), marking a second overseas acquisition for cashed-up Australian producers. St Barbara's C$2.90 a share cash offer represents a 39% premium to Atlanta Gold's closing price on Tuesday in a deal that analysts said opened up growth options, but could lead to a call on capital and crimp dividends. The bid, which has the backing of Atlantic's board, comes after Australian gold miner Newcrest Mining Ltd bought a copper and gold mine in Canada for $806.5 million in March and said it had the firepower for more acquisitions.
The 1960s and 1970s were the Golden Age of nuclear power. The total generation capacity of nuclear power plants worldwide grew 14-fold from 1.2GW to 16.5GW in the decade to 1970, and then rose a further eight-fold to hit 135GW by 1980 as fears about energy security stoked by the oil shock encouraged countries to look for domestic sources of supply. The Chernobyl disaster of 1986, however, coupled with the slide in oil prices that eased fears about energy supplies, put a brake on the industry’s growth, and over the subsequent 27 years capacity grew only another 30 per cent, reaching 392GW in 2017.
Iran, hard hit by US sanctions on its oil sales, now faces restrictions on metals exports -- but industry insiders say foreign income from mining and steel will be harder to curb. Tensions are soaring a year after Washington withdrew from a multilateral 2015 deal over Iran's nuclear programme. A US aircraft strike group is heading for the Gulf and Tehran has said it will stop abiding by some restrictions on its nuclear activities.
Precious metals are trading positive on the day but most of them are posting losses on the week. Gold is up, but the move looks short-lived.
Shares of Barrick Gold Corp. (GOLD) closed 1.18% lower at $12.57 on Wednesday after the mining company reported first-quarter 2019 results. Warning! GuruFocus has detected 5 Warning Signs with GOLD. Key operations performed well and were in line with Barrick's expectations.
May 8 (Reuters) - Jinchuan Group International Resources Co Ltd: * DURING Q1, GROUP'S MINING OPERATIONS SOLD 19,656 TONNES OF COPPER VERSUS 15,613 TONNES * Q1 REVENUE GENERATED FROM TRADING OF EXTERNALLY ...
Chile consumer prices rose 0.3 percent in April, the government's official statistics agency said on Wednesday, boosted by a rise in food prices and transportation, but counterbalanced by a drop in the cost of clothing. The central bank's inflation target for Chile, the world's top copper producer, is 2.0 to 4.0 percent per year.
Chile posted an April trade surplus of $612 million, the country's central bank said on Tuesday, even as the value of the Andean country's coveted copper and lithium exports slid sharply from the previous ...
Chile posted an April trade surplus of $612 million, the country's central bank said on Tuesday, even as the value of copper exports slid 4.1 percent from the previous period amid falling prices and production ...
Copper production at Chile's top mines dropped sharply in the first quarter of 2019, Chilean copper commission Cochilco said on Tuesday, amid a perfect storm of operational issues, heavy rains and falling ore grades at the largest deposits. Cochilco said world top copper miner Codelco saw output drop 17 percent from the same period in 2018 to 371,000 tonnes. BHP's Escondida copper mine - the world's largest - also saw production fall 14.8 percent to 274,800 tonnes in the first quarter.
The USD/CAD pair made a fresh high near 1.3446 level today. The US Oil sanctions on Iran encouraged the commodity to remain consolidated near 62.40 level. The Greenback remained consistent within 97.45/39 levels amid the US-China trade tensions.
The London Metal Exchange is setting its sights on Asian retail investors with the launch of dollar-denominated mini contracts for six base metals in the coming months, CEO Matthew Chamberlain said on Tuesday.
Chile's economic activity rose 1.9 percent in March from the same month a year ago, its central bank said on Monday, as mining output continued to lag in the world's top copper producer. The IMACEC economic ...
Yamana Gold (NYSE:AUY) stock fell following its quarterly report. The Toronto-based gold producer beat earnings estimates but missed on revenue. This left Yamana Gold stock falling back towards 52-week lows.Source: Shutterstock Yamana Gold has moved to stabilize its balance sheet in recent weeks. However, until the gold market sees significant upward price movements, both AUY and other gold stocks will see little traction.For its first quarter, the company reported earnings of two cents per share. This beat analyst estimates by one penny per share. AUY lost three cents per share in the first quarter of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, revenues of $407.1 million missed expectations by $7.39 million. They also fell 10.5% from year-ago levels. Even worse, revenue fell short in a quarter where production exceeded analyst estimates. AUY stock fell by more than 3% in morning trading following the announcement. * 7 Energy Stocks to Buy to Light Up Your Portfolio During the quarter, Yamana Gold sold its Chapada copper and gold mine in Brazil to Lundin Mining (OTCMKTS:LUNMF) for over $1 billion. As our own Will Ashworth points out, this allows Yamana to bring down its $1.793 billion debt burden. Yamana Gold Is a Proxy for Gold PricesI agree with my colleague that this sale strengthens the balance sheet of AUY stock. Does it make AUY a buy? I'm not so sure.On the surface, the forward price-to-earnings (PE) ratio of around 14.9 appears reasonable. It looks even better when traders factor in predicted earnings increases. Wall Street expects profit growth to average about 40% per year over the next five years.Still, such forecasts tend not to guide gold stocks. Historically, Yamana Gold stock and the equities of peers such as Newmont Goldcorp (NYSE:NEM) and Lundin Mining tend to become proxies for gold prices. Unfortunately for Yamana Gold investors, gold prices have seen little traction over the last few years. AUY stock briefly surpassed $20 per share in 2012 as gold prices surged toward $2,000 per oz.However, the price of gold has not exceeded $1,400 per oz. since 2013. Consequently, it has remained range-bound since that year. Over the last 5.5 years, gold has bottomed at about $1,050 per oz. and has seen a top of around $1,375 per oz.This has left Yamana Gold stock trading in a range. As a result, the stock price trades at levels it saw in 2015. Now, with gold at around $1,275 per oz., AUY stock has traded between $2 per share and just above $3 per share for the last two years. Yamana Gold and the Looming BearGold tends to rise when investors lose confidence in the reserve currency, which remains the U.S. dollar. However, in the midst of a crisis, history shows that traders lose confidence in gold.At the height of the 2008 financial crisis, gold fell in value as investors flocked to the perceived safety of the U.S. dollar. Gold did not rise again until 2010 when investors started to want an alternative to the dollar. After about three years, the price of gold fell back to the range where it trades today.As things stand now, I don't see any catalyst that will take gold sufficiently higher. If history serves as a guide, a stock market swoon will become bearish for the dollar, and by extension, AUY stock. As long as investors retain their confidence in the dollar, neither gold nor gold stocks will break out of their respective ranges. The Bottom Line on Yamana Gold StockAfter earnings, expect little activity from AUY stock until it can rise out of its trading range. AUY sold off as the company missed revenue estimates despite increased production.On the surface, AUY looks increasingly solid. Selling the Chapada mine should reduce its debt. Moreover, the reasonable PE ratio and the high levels of profit growth predicted should presumably send Yamana Gold stock higher.Unfortunately, gold stocks tend to follow the price of gold. As gold has remained range-bound, so too has AUY stock. Even worse, no apparent catalyst has appeared that would take gold higher.If investors lost confidence in the dollar, both gold and Yamana Gold stock would become a screaming buy at current levels. However, as things stand now, things will likely get worse before conditions improve for AUY.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks to Buy to Light Up Your Portfolio * 10 Vice Stocks to Spice Up Your Portfolio * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post Yamana Gold Stock Is Stifled By the Range-Bound Gold Market appeared first on InvestorPlace.
U.S.-China trade friction cast a shadow over the start of the event, with U.S. President Donald Trump on Sunday saying he would raise tariffs on $200 billion of Chinese goods this week. China is the top consumer of copper, the metal considered to be a bellwether of economic health, and traders are always looking to check the pulse of their biggest market. Yangshan copper premiums, paid on top of LME copper prices to import metal into China, are currently assessed at $48 a tonne, the lowest since April 2017.
Electric car builder Tesla foresees a shortage of battery metals as mining investment fails to keep up with soaring demand for energy storage solutions such as EV batteries