Ground Breakers: Conflict locks in big miners even as metal prices continue to rise
Commodities literally went on the warpath in February, with prices skyrocketing on news of Russia’s invasion of Ukraine.
But as it wore off, risk weighed on big mining stocks.
Iron ore prices climbed 5.5% back above US$150/t after big moves in futures markets yesterday on expectations of heavy Chinese infrastructure spending later this year. year.
Iron ore up US$8.00 or 5.5% to US$153.00 a tonne.
— CommSec (@CommSec) March 3, 2022
“Iron ore futures hit a six-month high, boosted by rising expectations of stronger Chinese demand,” said David Plank of ANZ.
“China reiterated its commitment to increase infrastructure spending this year. Positive sentiment was boosted by the country’s manufacturing PMI which improved in February.
But iron ore stocks were all in the red despite the continued upward movement in futures today, with prices in Singapore hovering around the US$160/t mark.
Gold was up around US$15 an ounce this morning and headed for uncertainty, but failed to secure a major risk boost, with Federal Reserve Chairman Jerome Powell recommending still a rate cut of 25 basis points despite the current situation in Ukraine.
Uranium stockpiles really took the mining sector down today as Russian forces moved towards the town of Energodar.
Ukrainian officials, including its Foreign Minister Dmytro Kuleba, reported that shelling had taken place at the nearby nuclear power plant in Zaporizhzhia, and that an administrative building of Europe’s largest nuclear power plant was on fire.
The International Atomic Energy Agency said it was aware of the reports.
— IAEA – International Atomic Energy Agency (@iaeaorg) March 4, 2022
Mid caps Boss Energy (ASX:BOE) and Paladin (ASX:PDN) were two of many uranium stocks to slide with Paladin capped at $2.3 billion losing 25% of its value.
Uranium prices crashed in 2011 following a large-scale shutdown following a collapse of Japan’s Fukushima nuclear power plant during the Tohoku earthquake, an incident which the market does not only recently recovered.
Newcrest up as Greatland Gold goes rogue on Havieron
Newcrest Mining (ASX:NCM) jumped nearly 2% this morning after its junior gold and copper project partner Havieron appeared to go rogue and release its own resource upgrade in the NCM-operated JV .
Havieron is one of WA’s best gold discoveries in recent years and the next phase of the company’s longstanding Telfer hub at WA’ Pilbara.
London-listed Newcrest partner Greatland Gold, the original owner of the buildings where Havieron was discovered, has engaged in apparent independent activity, posting a major resource upgrade to its London shareholders from day to day. the following day.
According to Greatland, its 10-month review of “consistently impressive drill results since the February 2021 cutoff” for the last resource upgrade had supported a 53% increase in gold resources to 5.5 Moz of gold and 218,000 t of copper and a 63% increase in indicated mineral resources to 3.1Moz.
Greatland claims probable ore reserves at Havieron have also been significantly increased from 1.7 Moz gold equivalent to 2.4 Moz gold and 109,000 t copper or 2.9 Moz gold equivalent.
This sent Greatland’s share price up almost 6%, a nice boost considering it’s down nearly 36% in the past 12 months.
Greatland CEO Simon Day described it as “verified independent analysis”.
“This update to Mineral Resources and Ore Reserves represents a significant increase over what was defined in the Stage 1 PFS,” he said.
“The update uncovered other aspects of the Havieron system and confirms that Havieron is a world-class deposit with significant growth potential.”
“Through independent verified analysis, the total mineral resource at Havieron has increased to 6.5 million gold equivalent ounces, an increase of almost 50% in 10 months of drilling.”
Only Newcrest came out this morning with this jewel.
“Newcrest has not reviewed or verified the analysis conducted by Greatland Gold,” gold giant ASX said in a statement.
“Newcrest intends to publish an updated statement of the Group’s Mineral Resources and Ore Reserves as of June 30, 2022 with its financial results for the full year, which will include a revised Mineral Resource estimate for Havieron.
“The Havieron Feasibility Study will be informed by the revised mineral resource estimate reported in Newcrest’s Mineral Resources and Ore Reserves Statement dated June 30, 2022 and remains on track for completion during the December quarter. 2022.”
Newcrest Mining share price today: