The Weekly Dig - Nov 17, 2017

by Mick Carew, PhD,, Emma Boggio, MSC, CPA and CA, and The Haywood Mining Team

The Weekly Dig - Gold Has Late Week Surge as it Nears the US$1,300 Mark


 • Precious Metals: Gold recorded over a US$12 gain during Friday’s trading, and encroached upon the US$1,300 mark for the first time in a month. As we head into the weekend, the precious metal is up 1.48% WoW as it finished at US$1,294 Friday afternoon, and reached its highest price since October 17th. Silver followed suit as it recorded a 1.35% increase during Friday’s trading to finish the week up 2.48% at US$17.31. Despite some midweek losses, platinum (up 2.28%) and palladium (up 0.02%) also had a positive week finishing at US$951 and US$997 per ounce, respectively. 

• Base Metals:  Base metals were down modestly week over week, LME nickel fell the most, down 4.5% WoW, while copper and zinc were down 0.2% and 1.6% WoW, respectively. The decline in nickel marks the largest weekly loss in over two months. The decline in base metals prices was partially due to negative economic data out of China. Last week, China released industrial output, fixed asset investment and retail sales data that missed analyst expectations. According to the National Bureau of Statistics, industrial output was up 6.2% YoY in October. This was down from the 6.6% gain in September and just below analyst estimates of a 6.3% gain. The accumulated growth rate of investment in fixed assets was down to 7.3% YTD in October from the 7.5% YTD recorded in September. Among the base metals equities this week, Teck Resources was the top performer (up 2.6% WoW) following the announcement of a special $0.40/sh dividend and the announcement of a $230M share buyback. Most of the base metals equities were down this week with Imperial Metals lagging the pack down 8.2% WoW with the release of third quarter financials. Imperials results missed consensus estimates, reporting a EPS loss of $0.20 and a CFPS loss of $0.10 compared to consensus estimates of a loss of $0.12 and positive $0.07, respectively.

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