Trade War: When Will The Time Be Right?

Dear Readers,

This week we provide the outlook for the trade war that has been rattling the commodity markets in recent weeks, we offer a sneak peek into an untapped copper discovery opportunity and a roundup on mining and exploration news in South America.

Have a great week ahead!

Will end of June be too late?

The mining industry continues to be affected by the ongoing trade saga between US and China, which Trump has said will be resolved ‘when the time is right’. Copper continues to suffer under the duress of additional goods tariffs as each side battles for global influence. Antofagasta Chairman, Jean-Paul Luksic, has said that the copper price would be 5 to 15% higher if it were not for this trade war. Gold, like the USD on the other hand, has managed to hold on steady and aluminium has risen due to reduced supply in China. Kudrow, advisor to Trump has indicated that the two Presidents are likely to meet at the G20 in Japan in late June, but how will this fare for the mining markets?

On a shorter-term scale, if the trade war ceases and we see a rise in commodity prices, this would be the opportune moment for mining stocks to start gaining market traction with news on exploration activity, mainly drilling. For seasonal drillers in North America, campaigns are now well underway with results usually trickling out from late summer onwards. For seasonal drillers in South America, such as northern Peru, drillers are now starting back up following a longer than normal rainy season. However, it may be harder for those at higher altitudes in the south as drillers pack up and winter sets in.

On a mid-to-long term outlook, set against the supply and demand prospects for copper, the end of 2019 into 2020 is when the deficit has been forecast to show. Could the ending in tensions between these two superpowers help propel the sector into another bull market? Or has the trade war simply gone on too long, prolonged to keep it a hot topic in the lead up to US Presidential elections, consequentially damaging the copper price dynamic and taking investors’ attention away to greener pastures?

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Newsfeed

Tue, May 14

Great Panther Provides Update on Tucano Gold Mine

Great Panther Mining Ltd. (TSX:GPR; NYSE:GPL) have commissioned a supplemental modular liquid oxygen supply system at the Tucano Gold Mine in Brazil to process higher grade sulphide ore, and has to date processed ore as high as 2g/t Au with 94% recoveries. Before the supplemental oxygen, Great Panther were limited to processing lower grade oxide material. With recent reports highlighting the future of new discoveries likely to be fewer and at lower grade, technologies like this one are encouraging for making those new discoveries economic to mine.

Tue, May 14

Guyana Goldstrike Identifies Outcrops Along a 1,100 m Magnetic Trend; Marudi Gold Project, Guyana

Guyana Goldstrike Inc. (TSXV:GYA, OTC:GYNAF, FSE:1ZT) have identified previously unmapped outcrops along 1,100 metres of a magnetic quartzite-metachert trend north of its Mazoa Hill 43-101 resource. This news follows the trend of juniors focussing on brownfield exploration, and is encouraging for the company as they will work to expand the resource with exploratory drilling, adding to the 42,000 m historic drilling and working to add to the three mineralized zones.

Thu, May 02

Adventus Announces Robust Results of its Preliminary Economic Assessment for the El Domo VMS Deposit

Adventus Zinc (TSX-V: ADZN; OTCQX: ADVZF) reported a Mineral Resource Estimate update and robust PEA at their El Domo deposit at the Curipampa project in Ecuador. The PEA outlines development potential for production of copper, gold and zinc by open pit and underground methods. El Domo is economically attractive compared to development project peers and upside potential at Curipampa will continue to be explored by the Adventus team as they evaluate and drill new targets in 2019. Adventus also announced a strategic investment from the Noblis Group of Ecuador as part of a C$12.1 million private placement, see here.