Zijin Mining | Reciprocating Markets | Alamos Outpacing
[Thom Calandra's Notes At Close Of Report --
sharp metals rallies this week, TCRs. New highs
for spot and futures contract gold.
Updated Sept. 20, 2024]
Zijin is piling up gold profits — with copper profits taking a larger and larger piece of the pie.
Zijin deputy president Shaoyang Shen
says Zijin has 30 or more mines in 16 countries.
Yet copper has become more important to group performance, comprising 47% of the 2023 gross profit of US$6.6 billion. Copper, the active futures, this week closing Sept. 20 rose to $4.33 a pound from $4.21 at the week’s start.
Gold, this week rising to new highs in futures and spot prices, accounted for a quarter of the Zijin profit.
TCRs, Denver Gold Group’s reporting this week at its Colorado Springs’ Americas Forum: Kristie Batten for DGG is snapshotting major metals producers at Mining Forum Live.
“The headlines are forcing people to pay attention and look at metals and that could mean the tactical money, the hedge fund money, the fast money, is beginning to come in, as well as some retail money.” — Wasif Latif via Americas Gold Forum
Also on Kristie’s tag list: Gold Fields. Barrick Gold, AngloGold Ashanti, Agnico-Eagle, Newmont. The Gold Forum feed also has an Australia look at zinc, among other companies, metals and topics. Worth the views.
Wasif Latif, a New Jersey (U.S.) funds manager for Sarmaya Partners, touched on a theme I believe in deeply: reciprocating markets. That is, as the super-performers of the past two decades — Fortune 1000 stocks, at times bonds, technology — wane in price, investors will shift slowly into “tangibles” such as gold, copper, uranium, platinum and so on. Image above.
The yearly Colorado Springs DGG show follows another Colorado conference — Precious Metals Summit (last week).
DGG’s Americas Forum drew 142 companies, many of them metals producers, this year. The webcasts (videos) are here. Worth viewing.
DGG’s executive director, Tim Wood, tells me “copper is getting a huge amount of attention via the webcasts. Plenty of generalists here and that is increasingly the case with any mining fund – copper, that is.”
Precious Metals Summit, the other Colorado conference this autumn, drew 217 explorers, developers and emerging producers of gold, silver and platinum group metals, Jessica Levental of that group tells me.
Alamos Gold: take a look at the 3-year production (2024, 2025, 2026) “guidance” that best-performing Alamos AGI is giving. This says it all: Magino Mine, the Ontario addition, is now a contributor to the multi-mine’s mills.
Magino, albeit boosting average operating expenses for an ounce of gold, powers an approx. 20% output guidance gain in both 2025 and 2026. I own AGI and we have regularly reported on Alamos since approx. 2015.
AGI shares are outpacing most mid-sized and reliable gold producers this entire week (updated Friday Sept. 20, 2024) The chart shows AGI, in light blue, rising 14% for the 10 days ended Sept. 20 vs, the GDX Van Eck ETF of major miners,up 10%.
Copper & Ivanhoe Mines:
“And now, facing a deficit that will be historic in size and a debt load that will continue to grow even with these deeper rate cuts, I think the path ahead for gold, along with silver and mining stocks, will continue to be upward.” — Brien Lundin of Gold Newsletter and the November 22 New Orleans Investment Conference
Notes
Several pre-resource gold explorers — again, from Kristie Batten.
Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.