Kitco NEWS Roundtable

Metals traded lower end of week when jobs data came in stronger than expected, noted mining audiences manager Michael McCrae.

On Saturday McCrae recorded Kitco Roundtable with Kitco correspondent Paul Harris.

On Friday jobs data showed the U.S. economy created a whopping 353,000 jobs last month, significantly beating expectations. Markets see only a 20% chance of a rate cut in March, and they have pared back expectations for a rate cut in May.

Copper spiked mid-week, nearing $4 pound to settle back where it started, due to the strong job's number. Gold finished the week near the 2050 level, mostly flat for the week.

In mining news British Columbia's Nisga'a Nation is establishing Canada's largest majority Indigenous-owned public company. The new royalty company includes mining heavy hitter Frank Giustra, who will be strategic advisor to the newly-formed Nations Royalty.

The copper market is setting up nicely and prices for the metal should head higher, noted Kitco correspondent Paul Harris.

On Monday Harris, mining audiences manager Michael McCrae and Soar Financial CEO Kai Hoffmann recorded Kitco Roundtable at the Vancouver Resource Investment Conference.

Harris noted that copper supply is starting to dwindle, while energy transition is increasing demand.

The three panelists also noted the downbeat mood at the first major mining show of 2024, as resource companies hope to turn the page on a mostly forgettable 2023.

A Chinese miner made a large investment into a Latin American copper developer, noted Kitco correspondent Paul Harris.

On Saturday Harris and mining audiences manager Michael McCrae recorded Kitco Roundtable.

Earlier this week Solaris Resources announced a $130 million strategic investment by Zijin Mining Group. Solaris is advancing its Warintza project, a high-grade open pit copper resource in Ecuador.

McCrae noted that both gold and copper were under pressure due to a hawkish turn by the Federal Reserve.

Uranium leaped to a new high, noted mining audiences manager Michael McCrae.

On Saturday McCrae and Kitco correspondent Paul Harris recorded Kitco Roundtable.

Uranium traded as high as $100 this week according to pricing data provider UxC. The metal is has tripled in the past two years. Uranium was propelled higher when mining giant Kazatomprom announced a production shortfall of the metal due to lack of sulphuric acid needed for production.

Gold has had a solid year, overcoming the Fed's higher interest rate regime, noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

Spot gold managed to finish the final trading day of 2023 in the 2060 range, up about $200 from the start of the year.

In mining news top ten gold miner, Agnico Eagle (NYSE: AEM), announced today it was investing $23.12 million in Canada Nickel Company (TSXV: CNC). Agnico will own about 12% of the Ontario-focused, early-stage nickel company.

On Friday gold prices fell on strong job numbers from the U.S., noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

Friday was jobs day. The U.S. economy created 199,000 jobs last month, beating expectations. At the same time, the unemployment rate dropped to 3.7%, down from 3.9% in October.

The strong economy implied that the Fed is further away from easing. On the news gold prices hit a two-week low and silver a three-week.

According to some analysts, Monday's rally and subsequent selloff was not helpful for gold's long-term price action.

In mining news depressed platinum prices have forced miners to lay off workers.

Anglo American is preparing to freeze spending on growth and widen job cuts in South Africa. Reuters reports that the miner is preparing to mothball some high-cost platinum mines.

Last week Sibanye-Stillwater, the other major platinum producer, said it was cutting about 100 employees and 187 contract workers at its Stillwater West mine in Montana

Platinum prices have declined 11% for the year.

Gold finally hit a record high, and the copper markets had a big supply shock, said mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

February gold futures last traded at $2,091.90 an ounce, up more than 4% from last Friday's close. Gold's previous record was at $2,089.20 in August 2020, wrote Kitco editor Neils Christensen.

Gold is seeing renewed buying momentum as markets continue to price in a potential rate cut as early as March. The precious metal's rally comes even as the central bank maintains its tightening stance. Friday, Federal Reserve chair Jerome Powell said that he is still not confident monetary policy is sufficiently restrictive enough to bring down inflation to 2%.

In mining news, First Quantum was the story. Panama's top court declared that First Quantum's contract with the government to operate a key copper mine was unconstitutional. Panama's president, Laurentino Cortizo, then closed the mine.

First Quantum is a top 10 copper miner.

To end the week gold has spent much of the time trading above $2,000 a ounce, noted mining audiences manager Michael McCrae.

On Friday McCrae recorded Kitco Roundtable.

After the good CPI numbers earlier this month that may allow the Fed to stop hiking, gold has found room to rise.

Notable economic number this week were the the S&P Global Flash U.S. manufacturing and services PMI.

Manufacturing contracted while services expanded. Bottomline is that the numbers put the U.S. economy at neutral.

Copper was up again this week, nearing the $3.80 lb point. Supply disruptions favored the metal, which segues to mining news.

In mining news, First Quantum is facing supply disruptions and a looming court decision.

Protestors in Panama are blocking supplies from reaching the mine. Without relief, the company warned that production could be halted.

The mine also faces legal challenges. It's recently signed mining contract it signed with the government is being challenged in the supreme court. A decision is expected in the coming days or weeks. A majority of lawyers surveyed by Reuters said
the Supreme Court is likely to rule against the company, citing a precedent.

Commodities and markets were up this week off the good consumer price index report, which came in below market expectations, noted mining audiences manager Michael McCrae.

On Saturday McCrae recorded Kitco Roundtable.

The GDX, a index of gold miners, was up 5% on the week. The S&P was up half that amount. Gold added about $40 for the week to end at the 1980s range.

Mid-week consumer price index report was below Wall Street estimates, which sparked a major rally on Wall Street. The core CPI rose 0.2% and 4%, against the forecast of 0.3% and 4.1%. The annual rate was the smallest increase since September 2021, according to CNBC.

Copper was up 4% this week. Even better for miners is that oil prices were mostly flat on the week with WTI trading in the mid 70s.

The big mining news from the start of the week is when Glencore bought 77% of Teck Coal Business for $6.93 Billion. Nippon Steel took the remaining portion.

In a news release Jonathan Price, President and CEO, Teck. said the sale will ensure Teck is well-capitalized and able to
realize value from its base metals business and re-focus Teck as a Canadian-based critical minerals champion