The Dig – Haywood Mining Team’s week in review

POSTED ON September 26, 2014 BY Haywood Mining Team
CATEGORY Haywood Securities, Stories,

Haywoods Heritage Moment: China is the largest gold producer in the world. It accounts for around 14 percent of all production. Source: World Gold Council

Miners and Metals Headed for Early Autumn Bottom?

Continued concerns over economic growth in China and Europe have taken their toll on mining equities, and junior mining equities in particular. The S&P/TSX Venture Composite Index fell 4% this week to a new yearly low, ending the week at 919. This follows a dramatic drop in the index during September, down almost 100 points (↓10%) since the start of the month. The S&P/TSX composite index also lost ground during the week, down 2% as of Friday afternoon and falling almost 700 points (↓4%) in September. Falling metal prices in September reflect the performance of mining equities during the month, with gold down 5.7%, copper down 3.8% and nickel down almost 10%. Meanwhile, iron ore prices are currently at five-year lows, down to $78.6 per tonne (CFR China 62% Fe). The fall in gold can largely be attributed to an improved economic outlook in the U.S., with housing and manufacturing all showing signs of improvement. This is despite continued geopolitical concerns in Syria, where airstrikes have commenced against Islamic State militants, and eastern Ukraine, where Russia are accused of aiding the pro-Russian separatists. This week, gold remained flat, finishing at $12.18 per ounce on Friday, while silver (↓1%), platinum (↓2.5%) and palladium (↓4%) were also down. There were also losses across the board in base metals with copper, nickel, lead and zinc all down 1.7%, 4.6%, 0.5% and 0.3% respectively. Uranium finished at $35.46 per pound on Friday.

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[Great wall of China source]

Haywood Mining Team

Canadian mining companies have been among the industry leaders, creating new exploration and development undertakings and drawing on their recognized production expertise to generate new opportunities. Our mining research team follows all segments of this sector, covering base and precious metal sectors for large and small-cap companies. Haywood's mining sector coverage also continually seeks opportunities in the dynamic Canadian junior market sector, one that has a rich culture in exploration and development. More →

gmark@haywood.com

Haywood Mining Team

gmark@haywood.com

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