|Day's Range||2.664 - 2.709|
The presence of such a bearish picture for copper is probably not good news for the global economy and many economists and institutions already expect weaker economic growth over the next quarters.
During the European session, we anticipate the release of the latest quarterly average earnings report today at 11:30 MT time. According to experts, it will reach 3% in this quarter, a healthier level than 2,7% in the previous quarter.
Santiago-based Codelco posted the lowest quarterly copper production this year in the third quarter, according to Chile copper agency Cochilco. The company reported declines across all of its mines in September as ore grades fell an average of 5 percent in the first nine months of the year. The decline in ore grades compounds supply troubles after a commodities price slump that ended in 2016 made miners skittish about expanding their operations in Chile, the world’s largest copper supplier.
In the previous part, we discussed China’s steel and aluminum exports. While China is the largest steel and aluminum exporter, it’s the largest copper importer. Copper mining is concentrated in Latin America.
Chile's copper production from January to September this year jumped 7.3 percent from a year earlier, boosted by a sharp increase in production at BHP's Escondida copper mine. Chile, the world's top copper exporter, produced 4.25 million tonnes of copper in the first nine months of 2018. Escondida, in northern Chile, produced 950,900 tonnes through September, up 57.8 percent from the same period in 2017, when a strike shut down the mine for more than 40 days.
Broader equity markets have whipsawed this year. The SPDR S&P 500 ETF (SPY) fell sharply last month. SPY has risen 3.8% YTD (year-to-date) based on the closing prices on November 5. While the broader market indices are still in the green for the year, metals and mining stocks have been a different ballgame.
Randgold Chief Executive Mark Bristow, who will lead the group after the Barrick tie-up, also told Reuters that Barrick could dispose of its Zambian copper mine after the merger. In Tanzania, the government has accused Acacia, which is 63.9 percent owned by Barrick, of tax evasion and has slapped it with a $190 billion tax charge and banned any exports of unprocessed gold. Acacia denies any wrongdoing.
(Reuters) - Canada's main stock index rose on Monday, starting the week on a firm footing, helped by gains in energy shares on the back of recovery in oil prices. ** At 9:38 a.m. ET (1438 GMT), the Toronto Stock Exchange's S&P/TSX Composite index was up 50.97 points, or 0.34 percent, at 15,170.25. ** Bank of Canada Governor Stephen Poloz welcomed the recent financial market developments, especially market volatility, a stronger U.S. dollar and higher yields for long-term bonds. ...
Last month's tie-up between Barrick and Africa-focused Randgold Resources revived speculation about a joint venture between Newmont and Barrick in Nevada, something the two mining firms had explored in 2014 without reaching a deal. "They have been trying to negotiate for years but Newmont couldn't agree with Barrick, now that you have a new management team, it's certain they revived those talks," one source said. Newmont produced 1.8 million ounces of gold in Nevada in 2017 and has processing capacity which would benefit Barrick Nevada, which produced 2.3 million ounces or 43 percent of its owner's 2017 output in 2017.
Gold prices were higher on Friday as the U.S. dollar inched down, despite a better-than-expected jobs report. Comex gold futures for December delivery rose 0.11% to $1,237.40 a troy ounce as of 10:33 AM ET (14:33 GMT). The positive report supports the case for the Federal Reserve to increase interest rates in December, which is likely to put pressure on gold.
Power supply to some mines in Africa's second-biggest copper producer was cut due to a technical fault, Zambian state power firm Zesco said on Friday. A spokesman for Luanshya Copper Mine owned by China Nonferrous Metals Mining Corporation (CNMC) said the company expected to lose about four hours of production. Industry sources said Konkola Copper Mines(KCM) owned by Vedanta Resources shut down all its operations except its smelter and the Konkola Deep Mine during the blackout.
Investing.com - Gold futures surged 2% on Thursday, recouping all it lost in the past three sessions and more after the dollar’s tumble sent investors toward the other safe-haven of choice.
Chinese imports of scrap metal from the United States fell in September, according to customs data on Thursday, spelling out the impact of tariffs imposed by Beijing, while India and Iceland benefited from a boom in Chinese alumina exports. China's General Administration of Customs said in a statement posted on its website on Thursday that it was making available to the public monthly data on the import and export of commodities, including the country of origin for imports and destination for exports. A search of the data showed China imported 9,641,673 kilograms, or just 9,642 tonnes, of scrap copper from the United States in September, the most recent month available.
Despite making a lot of noise about its electric vehicle-focused mines such as nickel, copper and cobalt, Glencore has continued to buy more coal assets, adding rival Rio Tinto’s Australian operations to its portfolio this year. Coal-mining profit will eclipse copper earnings -- which are forecast by analysts to be about $5.5 billion -- for the first time since the trading house sold shares in London in 2011.
As the CEO of Hut 8, one of North America’s largest cryptocurrency miners and the world’s largest publicly traded cryptocurrency miner, I’m often asked questions about energy consumption in the mining of cryptocurrency. Unfortunately, there are many misconceptions around energy use and why it’s required to safely and securely transact cryptocurrencies.During our ribbon-cutting ceremony in the City of Medicine Hat in September 2018, a reporter asked me how I felt about something “frivolous” like bitcoin using so much energy. I was taken aback by the question. It indicated a lack of understanding of both the important role bitcoin mining plays in improving a wide array of services and systems around the world, and the fact that we purchase electricity in the same way any other business would in a free market.Is Bitcoin Frivolous?Let’s take a step back. Today, the world’s biggest industry is the trading of currency, estimated to be over $5 trillion daily! That’s more than 70 times larger than all trade in goods and services and 25 times larger than the world’s GDP. Even at this scale, currency trading doesn’t accomplish stable monetary values across world economies. Instead, the main function of currency trading is to enable traders to speculate on currencies and central banks to maintain more than $250 trillion of debt on the world economy. Bitcoin is the emergence of a new world monetary system. Gold is the only monetary element that has endured through centuries, and bitcoin is the new gold. Sound monetary policy is the basis of capitalism. At the beginning of the 20th century, all paper currencies were bills of exchange for precious metals such as gold and silver. However, as the century evolved, governments decoupled their currencies from being underpinned by actual gold reserves. Instead, governments used their power to issue more currency, thus devaluing it. Governments saw inflation (the printing of more money not underpinned by anything) as a quick way out of debt. Despite that, most world governments continue to accumulate more debt and mint more currency. Look at what’s happening in Venezuela and Argentina. From an economic perspective, all governments are insolvent as fiat currency is now largely backed by debt. Currently, the U.S. government is more than $20 trillion dollars in debt! Bitcoin is the first reliable digital currency with a market value in excess of $100 billion. The limit on the number of bitcoin to enter circulation creates scarcity similar to gold, making the currency non-inflationary. It’s globally recognized and provides freedom for individual holders to transact in digital form. In a world of looming inflation and governments that print more currency as a magical solution to economic problems, bitcoin represents the evolution of currency to the digital age and a possible solution to current monetary policy failures.Now that we’ve established what bitcoin’s role is, what is the role of bitcoin miners?Energy used to mine cryptocurrency is performing an extremely valuable service: It secures data about transactions worth hundreds of billions of dollars. Through their computational work, bitcoin miners are essential to the operation of bitcoin as they provide security to the bitcoin ecosystem in lieu of a government or central bank. Bitcoin mining secures the Bitcoin blockchain and empowers millions of people around the world to use the cryptocurrency, which is an anti-inflationary store of value. Like any technology, mining consumes energy.It’s All RelativeWhen compared to the energy required for everyday activities such as sending emails, using social media, driving cars or flying airplanes, mining doesn’t require a disproportionate amount of energy. Despite bitcoin mining’s exponentially lower consumption of energy than these activities, miners are currently receiving high levels of criticism for their energy use. It would be difficult to imagine consumers of traditional financial services calling Wells Fargo, or any other major institution, and complaining that it’s consuming too much energy keeping money or financial assets accounted for and secure; or social media users protesting against Facebook or Instagram for the enormous amounts of energy usage consumed to run their platforms. It's Efficient and ScalableLet’s consider the amount of energy used to consummate a financial transaction in the traditional sense, which involves several players. Online banking, traditional banking and credit card companies all require expensive ledger storage systems and capital movement systems that are inefficient, slow and costly.In contrast, a bitcoin transaction is settled the moment it hits the blockchain, never traveling through third-party institutions that collect fees along the way. The miner who added it to a block did use electricity, but that amount is substantially less than the energy needed to keep Fortune 500 financial companies running at full steam for a few days. How much electricity is consumed daily to maintain over $5 trillion of daily currency trading operating? In addition, miner energy use rises or falls depending on the amount of competition between miners, not the number of transactions being validated. It’s a misconception that additional bitcoin use would lead to more energy consumption.It’s Less Impactful on the EnvironmentWhen calculating the use of energy, one needs to consider the environmental impact and cost of printing paper currency and producing metal coins all around the world. In the digital age, why do we need coins made of gold, silver, copper or aluminum? Paper currency? Plastic credit cards?In the U.S., the Bureau of Engraving and Printing produces 38 million notes a day with a face value of approximately $540 million. 95 percent of the notes printed are used to replace notes already in circulation. What’s the environmental impact of that on an annual basis?Unlike traditional mining, bitcoin mining does not require actual digging of holes into the earth or extraction of metals and minerals. Traditional mining operations ravage the landscape and contaminate groundwater and soil.Hut 8’s bitcoin mining farms sit on remote fields. They produce no pollution, no discharge of any type except for some heat from the operating computers. There is also no noise pollution. Outside of the energy consumed, there is no environmental impact. In and of itself, the way we use energy does not pollute the environment. Our output is a digital asset that is the alternative to a traditional physical asset, and a contribution to the communities in which we operate, through job creation, infrastructure improvements, and financial contributions to local schools and sports teams. Technology Is Evolving Fast!Bitcoin mining is becoming energy efficient quickly. Electricity is the single largest cost for a bitcoin miner, thus we not only seek out inexpensive and clean sources of electricity but also the most efficient technology to harvest the electricity. Today, we’re seeing huge advances in chip design that enable greater mining capacity for far less energy consumption. There’s a good chance the energy use stays constant or even decreases while the number of transactions skyrockets. Just as the consumer electronics revolution drove massive computing efficiencies, the Bitcoin revolution could drive a similar explosion of innovation in clean, efficient energy — not just in mining but in all other energy-consuming production.Final ThoughtsCriticizing bitcoin mining as an energy waste would be like comparing the electricity used in traditional mail delivery versus email. Yes, email consumes more electricity. However, that doesn’t take into account the cost of a stamp, the use of paper or the infrastructure used to collect, sort and physically deliver the mail. Comparing bitcoin solely on energy use to traditional fiat would have the same flaws unless everything required to operate the fiat system is taken into account. Bitcoin will displace traditional fiat currencies and allow individuals to transact directly without the need of third parties in a more efficient way, like email. I think back to the question posed by the reporter — is bitcoin mining a waste of energy for a frivolous use? It strikes me as the wrong question; the question should be, what is the price of securing billions of dollars in daily transactions and empowering individuals through an online peer-to-peer payments infrastructure that anyone with a smartphone and internet connection can use? My view is that bitcoin represents an environmentally superior alternative to the amount of energy consumed worldwide by traditional financial institutions to perform a similar function. The world needs a global, digital currency that is not subject to inflation and is based on a computer algorithm to keep it secure — and that energy consumed to secure it is a small price to pay for the vast benefits it delivers. This is a guest post by Andrew Kiguel, CEO of Hut 8. Views expressed are his own and do not necessarily reflect those of Bitcoin Magazine or BTC Inc. This article originally appeared on Bitcoin Magazine.
Posted by OFX Australian Dollar The Aussie dollar performed strongly overnight, rising from intraday lows of 0.7051 to touch weekly highs of 0.7120 before retreating slightly to settle around 0.7102 heading into Sydney morning. This is despite weakness in key commodity prices, with oil and copper falling amid further US-China trade tensions. The local unit … Continue reading "Australian Dollar outperforms on U.S. Equity rebound"
Oil prices edged lower on Monday, with futures on track for the worst monthly performance since mid-2016, after Russia signalled that output will remain high and as concern over the global economy fuelled worries about demand for crude. Brent crude (LCOc1) futures fell 28 cents to settle at $77.34 a barrel. U.S. West Texas Intermediate (WTI) crude (CLc1) futures fell 55 cents to settle at $67.04 a barrel.
Oil prices edged lower on Monday, with futures on track for the worst monthly performance since mid-2016, after Russia signaled that output will remain high and as concern over the global economy fueled worries about demand for crude. Brent crude (LCOc1) futures fell 28 cents to settle at $77.34 a barrel. U.S. West Texas Intermediate (WTI) crude (CLc1) futures fell 55 cents to settle at $67.04 a barrel.
Yamana Gold’s (AUY) by-product AISC (all-in sustaining costs) for the third quarter were $739 per unit in gold equivalent ounces. Yamana Gold is guiding for by-product AISC of $725–$745 per gold equivalent ounce for 2018. During the conference call, Yamana Gold mentioned that while it isn’t updating the unit cost guidance, it’s providing directional information. The company expects its fourth quarter to have the highest production in the year with an anticipated improvement in unit costs.
Mining companies must forge new ties with partners from customers to governments as they pursue innovation and compete for talent with technology giants, Rio Tinto's chief executive said in a speech to be delivered on Tuesday. The mining industry has recovered from the deep commodity crash of 2015-16, but faces headwinds from U.S.-China trade tensions, which have dented the copper price, and is struggling to win investor trust. In a copy of a speech to be delivered at a conference in Melbourne on Tuesday, CEO Jean-Sebastien Jacques said pushing the industry forward calls for "a brand new spirit of partnership".
Eldorado Gold (EGO) stock dropped significantly in 2017 due to the standoff with the Greek government and some technical issues at its mines in Turkey. The stock continues to be pummeled due to these issues in 2018.
Posted by OFX Australian Dollar The Australian Dollar tried valiantly in attempts to break through 0.7150 on Friday evening, a barrier tested multiple times last week and is taking its cues from offshore global developments. Opening Friday treading water just below the 71 US Cent handle, The AUD/USD managed to hold steady despite the release … Continue reading "Australian dollar meets resistance at 0.7150"
Posted by OFX United States Dollar The USD softened over the weekend as risk sentiment again shifted against the Greenback. The US Dollar Index (DXY) opens this morning at 95.89, reflecting a small retreat of 0.36% that was mostly driven by the headlines out of Europe. Nevertheless, the Greenback remains primarily unchanged against most of … Continue reading "Greenback Primarily Unchanged from Its Currency Counterparts"
Canada's main stock index rose on Friday after data showed annual inflation rate dipped as price pressures from gas and air travel eased. * At 9:48 a.m. ET , the Toronto Stock Exchange's S&P/TSX composite ...