The recent bullish run that raised gold prices to levels not seen in almost six years seems to be stabilizing, possibly after investors overbet on rate-cuts. However, some analysts say the rally is not over yet. Though the yellow metal’s price is just one of many factors affecting production, its current levels may boost Mexico’s falling production. Regarding copper, there is a tug of war between two major factors impacting its price: the strike at Chuquicamata (which just ended on Friday) and expectations surrounding the Trump-Xi meeting at the G20 summit. Regardless of geopolitics, Mexico’s mining industry keeps moving forward: Minera Alamos is closer to start production at its Santana project and has closed a deal with ePower Metals on the Guadalupe gold project. Across the Atlantic, tragedy struck in the Democratic Republic of Congo, where the death toll has risen to 43 at a collapsed mine. In Mexico there have been 14 fatal accidents this year, a fraction of which are related to illegal mining activities. Also, Canadian Nuclear Laboratories extolled the potential benefits of small nuclear reactors for powering remote operations as a substitute for diesel.

Lastly, do not miss this week’s Interview of the Week with Keith Neumeyer, President and CEO of First Majestic Silver. We discussed First Majestic’s strategy in Mexico, expectations surrounding the gold-to-silver ratio and some of the intricacies related to the company’s acquisition of San Dimas.

Want to know more? Check out what made the headlines over the week!

 

Gold Prices

Gold’s bullish run has prompted talk of a new gold rush. Even when the market corrected itself late this week, Morgan Stanley and other prominent voices (1) (2) forecast high prices for the second half of the year.

Copper Prices

Workers at Chuquicamata, the world’s largest copper mine, came to an agreement with Codelco to end the strike that had pushed copper prices up and offset other downward-pulling causes, such as continuing trade tensions between the US and China.

Mexico

Mexico’s gold production fell 20.6 percent in 1Q19 compared to the same period last year. Nevertheless, the country keeps moving forward. Minera Alamos has closed a deal with ePower Metals and is ever closer to kickstart production at Santana. News are not so heartening in terms of safety as Subsecretariat Francisco Quiroga reported 14 fatal accidents in the sector this year.

Africa

In the Democratic Republic of Congo, 43 miners were killed by a landslide at a copper and cobalt mine owned by Swiss-based mining giant Glencore.

Technology

At this year’s Prospectors & Developers Association of Canada convention, Canadian Nuclear Laboratories extolled the benefits of small nuclear reactors as an alternative to diesel generators for powering remote, off-grid operations.

 
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