Metals & Mining Monitor | Base Metals See Slight Weekly Drop; RIO, AEM, CCJ, ALB Release Earnings

Spot gold prices surged, reaching an unprecedented $2,470 per ounce on Friday, propelled by a weaker-than-expected US jobs report which intensified speculation about an impending dovish shift by the Federal Reserve. The addition of merely 114,000 jobs in July fell substantially short of the anticipated 175,000, as the unemployment rate climbed to highs not seen since 2021, coupled with a deceleration in wage growth that surpassed market forecasts. These signs of a faltering labor market have heightened concerns that the Fed might struggle to engineer a "soft landing" for the economy. Amidst this economic backdrop, geopolitical tensions in the Middle East have also escalated, prompting investors to seek refuge in safe-haven assets, further fueling the rally in gold prices. $GCmain.US$

Copper price are trading around the $9000 threshold last week, remaining close to their lowest point in four months, as disappointing manufacturing data from the United States and China fuels concerns over demand from two of the world's leading economies. According to ISM data, US factory activity experienced a more significant contraction than anticipated in July, with elevated borrowing costs dampening demand. Concurrently, a private survey revealed an unexpected downturn in China’s manufacturing sector, citing subdued demand conditions as a contributing factor. Furthermore, the latest economic stimulus efforts by China, including both monetary and fiscal initiatives, have not convinced investors of a swift turnaround for the nation's economy. In the previous month, China reduced crucial lending rates and dedicated bond funds for economic revitalization. Additionally, the government, during a recent Politburo meeting, vowed to intensify support measures and bolster market confidence. $HGmain.US$

Leading mining corporation $RIO.AU$ announced a 14% surge in its net profit for the first half of the year, with a modest increase in underlying earnings. This financial uplift was primarily driven by enhanced copper production and favorable market prices, which balanced the weaker performance of its principal iron-ore segment. On Wednesday, the company, which ranks as the world's second-largest miner by market capitalization, disclosed a net profit of $5.81 billion for the six-month period ending in June. This is a notable rise from the $5.12 billion reported in the corresponding period last year, which had been impacted by asset write-downs on certain Australian alumina refineries.

$AEM.US$ has announced an exceptional quarter, showcasing a record-setting adjusted EBITDA of approximately $1.2 billion, coupled with an impressive free cash flow exceeding $0.5 billion. This period reflects a standout performance characterized by robust operational execution and exemplary cost management. Moreover, Agnico Eagle has reaffirmed its dedication to enhancing shareholder value, evidenced by a substantial $50 million investment in share repurchases and the distribution of nearly $200 million in dividends for the quarter.

$AGI.US$ has unveiled impressive second-quarter results for the year 2024, marked by unprecedented gold production achievements and the strategic acquisition of Argonaut Gold Inc. This pivotal move led to the creation of the Island Gold District, propelling the company to new heights. The quarter witnessed Alamos Gold reaching a new milestone with a record gold output of 139,100 ounces, defying previous production forecasts and culminating in an exceptional free cash flow of $107 million. The integration of the Magino mine, a consequence of the Argonaut acquisition, is predicted to significantly elevate gold production figures in the upcoming third quarter, with anticipated outputs lying in the range of 145,000 to 155,000 ounces.

$KGC.US$ has unveiled its financial results for the second quarter of 2024, revealing a considerable surge in both operating margins and free cash flow. The mining giant has reported an impressive doubling of its free cash flow, reaching $346 million for the quarter, coupled with a more than 20% increase in operating margins. Steady production levels were a highlight of the quarter, with the company achieving its target by producing 535,000 ounces of gold. The cost of sales remained competitive, slightly surpassing the $1,000 per ounce mark.

$ALB.US$ recently published its earnings for the second quarter, which highlighted a significant downturn in lithium market prices. The impact was stark, with the company's adjusted EBITDA experiencing a sharp 70% decline compared to the same quarter last year.

$CCJ.US$, a leading Canadian uranium supplier, has reported a significant increase in its second-quarter earnings, citing recent U.S. nuclear policy initiatives as key drivers of growth. ​According to the earnings report released on Wednesday, Cameco's net earnings escalated to CAD$36 million (US$26 million), a substantial rise from CAD$14 million (US$10 million) in the second quarter of the previous year. ​Prices of uranium oxide have soared to their highest since 2012 in the global long-term markets, buoyed by the growing endorsement of nuclear power in the U.S. and internationally.

$BHP.AU$ alongside $LUN.CA$ announced their intentions on Monday evening to collaboratively procure $FIL.CA$. The acquisition is valued at approximately 4.1 billion Canadian dollars (CAD) ($2.96 billion), translating to CAD 33 for each share of Filo. This valuation signifies a premium of roughly 32% over Filo Corp.'s 30-day volume-weighted average share price on the Toronto Stock Exchange (TSX) as of July 11.

$IGO.AU$ has reported a robust sales revenue of AU$234.7 million for the fiscal quarter concluding on June 30, accompanied by a solid underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) of AU$88.7 million. Over the entire fiscal year, the company's sales revenue reached an impressive AU$822.6 million, with the underlying EBITDA climbing to AU$588.2 million.