Gold Price ($US/oz)
8 November 2024 : Price $2,684
Silver Price ($US/oz)
8 November 2024 : Price $31.29
8 November 2024 : Price $918.61
1 January 2024: Price $755.80
“Buy land, they’re not making it anymore” Mark Twain
This week saw a resumption of the gallium price grind higher.
New 52-week highs with barely a pullback in sight and little volatility compared to the more liquid and visible bulks, industrial and precious metals. The gallium market participants are primary consumers and 1 producer with little speculative money filtering in just yet. Unfulfilled buying appears to be meeting the seller at higher and higher prices.
This week, We were reminded of multiple force majeure events in the alumina sector that could be spilling over into a gallium supply crunch.
BMO noted in their daily commentary “Spot alumina prices are currently above $700/t FOB, which is a price we still see as totally unsustainable, but we are losing conviction that there will be a sharp correction before year-end given the ongoing supply problems.”
May 2024 – Rio Tinto – Queensland alumina exports – force majeure
October 2024 – Emirates Global – Guinea alumina exports – force majeure
November 2024 – Alcoa – Brazil alumina exports – force majeure
With no known primary gallium orebodies – China produces 98% of the world’s gallium which is associated with the bauxite that China consumes on its journey through to alumina and finally aluminum. The alumina price has responded to the force majeure events accordingly.
Watch these developments closely.
Best Houses in the Best Streets in the Best Post Codes
Nevada and Arizona have always ranked highly in the Fraser Institute’s survey of mining capital destinations. Over the last 4 years, Nevada floats between 1, 2 or 3rd position while Arizona sits between positions 2, 7, or 9th. Post the Presidential Election this week we believe the tailwinds of support for hard rock mining and exploration in the USA are firmly at our backs.
A recent post on LinkedIn by Benedikt Sobotka (Former Group CEO of Eurasian Resources Group (ERG) | Co-Chair of the Global Battery Alliance | General Partner Alpha Future Funds) summarises the situation best:
Impact of the US Election on the Mining Industry – some scenarios:
– US Push for more US Metals Sovereignty: Transitioning from a major net importer to an exporter of domestically produced metals, reminiscent of the US energy revolution (2010-2020).
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Accelerated Permitting: More streamlined and centralized approval processes for US mining projects.
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Strategic Mineral Stockpiles: USA to Re-Establish reserves for critical raw materials.
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Currency Fluctuations: A short-term USD rally driven by potential tariffs, but a long-term weakening against the Chinese Yuan is likely to benefit metal prices.
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Nuclear Renaissance: Increased exploration and development of uranium, with a focus on domestic and “friendly” sources.
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Copper in the Spotlight: Copper may be elevated to the Department of Energy’s “short-term critical” minerals category, up from “medium-term near critical.”
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Gold Outlook: Short-term challenges due to profit-taking and a stronger dollar, but long-term inflation and safe-haven demand are expected to support higher prices.
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Global Mineral Access Battles: Increasing competition for mineral resources in South America, Africa, and Central Asia.
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Positive Outlook: Overall, the prospects for the mining industry seem promising!
We concur and believe Golconda and White Caps will be beneficiaries of 7 out of the 9 scenarios.
G50 is a one-stop shop for those on the ASX who are seeking exposure to new precious metals (gold and silver) and critical metal (gallium) discovery, on Patented claims in the 2 best States of America for exploration and mining. A lower U$ into 2025 will also provide a tailwind for operational expenditure.
Go Gold, Go Silver, Go Gallium, GO G50!!!
