While most base metals peaked on Tuesday (May 21), they also found themselves sliding downward by the mid-week mark to hit their weekly lows on Thursday (May 23).
Although zinc grew to US$2,722 per tonne by Tuesday on the London Metal Exchange (LME), it would plunge down to US$2,667 by Thursday. Nickel saw a similar story as it peaked at US$12,025 per tonne on Tuesday but crashed to US$11,860 on the LME by Thursday.
Lead managed to tread carefully at the beginning of the week as it made minimal movement between Monday (May 20) and Tuesday. However, much like its base metal comrades, it hit a snag by mid-week and ended Thursday at US$1,779 per tonne on the LME.
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As for copper, the red metal peaked at $6,003 per tonne on Tuesday before crumbling to US$5,859 by Thursday.
Iron ore trended upwards this week as the commodity shimmied out of the US$96 per tonne bracket into the US$97 zone; as of 3:02 a.m. EDT on Friday (May 24), prices had grown 0.85 percent to reach US$98.14.
Top News Stories
1. Fortescue Green Lights Queens Valley Development in Pilbara
Further beefing up its iron ore operations in Western Australia’s Pilbara region is Fortescue Metals Group (ASX:FMG,OTCQX:FSUGY), which approved the development of the Queens Valley mining area on Tuesday (May 22).
Queens Valley will be part of the company’s pre-existing Solomon hub, which currently includes the Firetail and Kings Valley mines; the two mines have a cumulative production capacity of 70 million tonnes per year. The addition and development of Queens Valley will see the continued production of Fortescue’s low-alumina Kings Fines product.
“Fortescue’s integrated operations and marketing strategy defines a product portfolio that maximizes value from the Fortescue orebodies over the long term, ensuring the continued delivery of returns to shareholders,” Fortescue CEO Elizabeth Gaines said in a statement.
2. Mincor to Acquire Independence Group’s Long Nickel
As it continues to build its nickel restart strategy in Western Australia’s Kambalda district, Mincor Resources (ASX:MCR,OTC Pink:MCRZF) has entered a binding agreement to acquire Independence Group’s (ASX:IGO) Long Nickel operation.
According to Mincor, the mine has been well maintained since being placed on care and maintenance by Independence in June 2018, keeping the asset in a “mining-ready” state.
With a production history dating back to 1979, Long Nickel hosts a mineral resource of 0.75 million tonnes (Mt) at 4.2 percent nickel, with 32,000 of contained metal.
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3. Nickel Mines Funds its Way to Larger Ranger Stake
After announcing its game plan to raise its stake in the Ranger nickel project in April, Nickel Mines (ASX:NIC) has signed a binding term sheet with Decent Investment International for US$80 million in funding.
Last month, the company stated that it wished to increase its current 17 percent stake in Ranger, located in Indonesia, to 60 percent. The decision came as a collaborative choice between Nickel Mines and operating partner Shanghai Decent Investment, which owns the other 83 percent share in Ranger and is an associate of Decent Investment.
Through the fresh term sheet announced Tuesday (May 21), Shanghai or its associates will receive US$40 million worth of shares in Nickel Mines in exchange for 43 percent of Ranger. At the same time, Nickel Mines will work to raise an additional US$30 million in equity through a placement to investors.
Also in the news
Days after revealing its plan to acquire a new nickel asset, Mincor Resources announced that it would be raising AU$23 million through a share placement and purchase plan. The move comes as an additional effort to speed up its nickel restart strategy in Western Australia’s Kambalda district.
Also raising money this week was Myanmar Metals (ASX:MYL,OTC Pink:MYMRF), who successfully raised AU$20.8 million through a share placement. Proceeds from the placement are docketed to go towards a definitive feasibility study for its Bawdwin lead-silver project, along with drilling, geophysical and related exploration programs at the asset.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
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