This year’s Prospectors & Developers Association
of Canada (PDAC) Convention, which took place early in the week
in Toronto, displayed a higher activity than several previous conventions.
The miners were upbeat as global exploration spending rose 15% last year while
S&P Global Market Intelligence expects that it will grow by up to 20% this
year (mining.com). Numerous investors, who came to this world-biggest mining convention, were looking for good deals in the mining
sector, as improving global economic outlook has sparked interest in certain
segments of the commodity sector.
In particular, China’s commitment to electric vehicles helped
raise the price of lithium by more than 40% and almost triple the price of cobalt
since early 2017.
Source: tradingeconomics.com
Base metals has been one of the leading segments in the
metals and mining sector – where copper and zinc have posted 50%-100% price
growth rates over the past couple of years.
Bloomberg Industrial
Metals Subindex
Source: bloomberg.com
Miners and investors are also anticipating increased
activity in other segments. For instance, many expect that gold will eventually
break through the USD 1,400 per ounce level, which it last posted back in 2013.
This could trigger heightened gold exploration and production.
Other metals, like uranium, have shown much weaker
performance. The price of uranium is currently close to its 13-year lows while
there have been a lot of expectations for a price revival in the past several
months amid shrinking global output of the metal.
Source: cameco.com
The S&P/TSX Venture Composite Index, which is heavily
based on early- stage mineral companies, so far is not showing as much
enthusiasm as individual miners and venture investors. The index is down about
2% year-to-date.
Source: tmxmoney.com
Ukrainian Credit Union Limited
No comments:
Post a Comment