Metals & Mining Monitor | Gold Prices Settled at 3-Week High; Kinross Gold Beat Earnings Expectations

$Gold Futures(FEB5) (GCmain.US)$ and $Silver Futures(MAR5) (SImain.US)$ prices have experienced a resurgence in demand since early May, with buyers stepping up in the last few days driving gold back above $2370 and silver back above $28.5. This represents an increase of 3.4% and 8.1% respectively.

$Copper Futures(MAR5) (HGmain.US)$ prices have climbed above $10,000 a ton due to predictions of tighter global supplies and increasing consumption in electric vehicles and power grids. These factors have offset signs of demand destruction in China, the largest user of copper. Copper prices have increased by 17% this year on concerns of shortages, as aging mines are expected to struggle to keep up with demand. According to ANZ Group Holdings Ltd. analysts, including Daniel Hynes, supply growth is stagnating. They stated that prices need to remain at around $12,000 per ton to achieve a 10% rate of return for a 300,000-ton mine.

$Freeport-McMoRan (FCX.US)$ is set to ship up to 900,000 metric tons of copper concentrate from its Grasberg mine starting in June following talks with Indonesia on extending its export license, Reuters reported Tuesday, citing two sources with knowledge of the situation. The company is in discussions with customers to sell Grasberg output in H2, indicating confidence that the government will permit exports after its current license expires at the end of May., Reuters said, citing three sources. Available concentrate for export may be 500,000 to 900,000 tons from June to November, the report said.

$Kinross Gold (KGC.US)$ reported Q1 adjusted net earnings of $0.10 per diluted share, up from $0.07 per share a year earlier. Analysts polled by Capital IQ expected $0.06. Revenue for the quarter ended March 31 rose to $1.08 billion from $929.3 million a year earlier. Two analysts surveyed by Capital IQ expected $1.04 billion. The company's board kept its quarterly dividend at $0.03 per share, payable June 13 to shareholders of record as of May 30.

$Albemarle (ALB.US)$ said that it signed an agreement to deliver limestone material from its proposed Kings Mountain lithium mine to Martin Marietta Materials (MLM). The company said the deal is part of its plan to resume lithium mining operations at the mine, including opportunities to repurpose byproduct material. Under the agreement, Albemarle plans to deliver limestone material to Martin Marietta's Kings Mountain quarry, and Martin Marietta will process and sell the limestone product as construction aggregate, Albemarle added.

$Cameco (CCJ.US)$ has announced the election of eight board members at its annual meeting held on May 9, 2024. Shareholders elected board members Daniel Camus, Tammy Cook-Searson, Catherine Gignac, Tim Gitzel, Kathryn Jackson, Don Kayne, Dominique Minière and Leontine van Leeuwen-Atkins. The annual meeting also marked the retirement of Don Deranger and Jim Gowans from the board after serving 15 years as Cameco directors.

Gold miner $Evolution Mining Ltd (EVN.AU)$ is likely to set higher FY 2025 production guidance than Macquarie analysts had anticipated, but likely higher cost guidance, too. At a recent sell-side roundtable, the miner signaled output would lift next fiscal year, implying FY 2025 output of at least 750,000 troy ounces, the Macquarie analysts say. However, Evolution also said FY 2025 all-in sustaining costs are likely face adverse pressure from labor and other cost inflation to the tune of around A$105/ounce, they say. Robust copper prices could help counter cost pressures.