surfer44
4 일 전
McEwen Mining: Q3 2024 Results
TORONTO, Nov. 05, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) today released its financial and operational results for the third quarter ended September 30, 2024 (“Q3”). The Company achieved significant improvements in revenue and operating profitability, driven by higher gold prices and strong production. The results reflect McEwen Mining’s ongoing commitment to expanding gold and silver production, advancing its large copper project and robust investment in exploration programs.
Financial Highlights (Q3 2024 vs Q3 2023)
Revenue increased 36% to $52.3 million due to higher realized gold prices and an increase in gold equivalent ounces (GEOs) produced for our 100%-owned mines. Average gold price sold was $2,499 per ounce in Q3 vs $1,920 in Q3 2023.
Gross profit increased 268% to $13.8 million due to higher gold prices, improved operational efficiencies and higher production.
Net loss significantly decreased to $2.1 million or $0.04 per share, compared to a net loss of $18.5 million or $(0.39) per share in Q3 2023, reflecting the Company’s focused efforts on cost controls and lower expenditures at the Los Azules copper project.
Operating cash flow increased to $23.2 million or $0.45 per share, compared to negative operating cash flow of $2.3 million or $(0.04) per share in Q3 2023, primarily reflecting the improvement in gross profit above.
Adjusted EBITDA(1) increased 586% to $10.5 million or $0.20 per share, compared to $1.5 million or $0.03 per share in Q3 2023. Adjusted EBITDA excludes the impact of McEwen Copper’s results and reflects the operating earnings of our mining assets, including the San José mine. This measure underscores McEwen Mining’s success in improving cash flow and operating performance across its production portfolio.
Operational Highlights
Gold Bar Mine, Nevada: Production reached 13,640 oz Au(1) in Q3, a 43% increase compared to the same period in 2023, driven by higher gold grades and improved recovery rates. The site is on track to meet its annual production guidance of 40,000 to 43,000 oz Au.
Fox Complex, Canada: Production totaled 7,855 oz Au(1) down 30% year-over-year, impacted by a temporary shortfall in development due to a stope failure in Q2 2024 that limited stope availability. However, the Company anticipates enhanced stope availability in Q4 2024, which will support increased production. The Fox Complex is expected to produce approximately 15-20% fewer ounces compared to its annual guidance of 40,000 to 42,000 oz Au.
San José Mine, Argentina: The 49% share of production from the San José Mine in Argentina was 13,684 GEOs(1)(3). Lower than anticipated grades contributed to a 23% decrease from Q3 2023. Nevertheless, Hochschild plc, as operator of the San José mine, expects to achieve its annual guidance for San José, which stands at 50,000 to 60,000 GEOs for McEwen Mining’s attributable share. The improved metal price environment has allowed the San José mine to build a strong liquidity position, with an increase of $40.4 million in working capital from $34.1 million at September 30, 2023 to $75.5 million at September 30, 2024, while also investing $8.5 million in exploration and $3.5 million in expanding the mill during 2024.
JD400
3 주 전
McEwen ups holdings in gold junior Inventus Mining
Staff Writer | October 21, 2024 | 10:25 am Exploration Markets News Canada Gold
Mini excavator extracting and loading the bulk sample at Pardo project. Credit: Inventus Mining
Canadian mining entrepreneur Rob McEwen has upped his holdings in Inventus Mining (TSXV: IVS) through the participation in the gold junior explorer’s latest private placement financing to support its ongoing exploration in Ontario.
In total, McEwen, through his company McEwen Mining (TSX: MUX), will buy 10 million units of Inventus at a price of C$0.04 per unit. McEwen currently holds approximately 35.8 million shares, or about 21% of Inventus, having built his take over the years since Inventus operated under its old name Ginguro Exploration
Inventus’ shares gained 50% to C$0.045 apiece by 1:20 p.m. ET, for a market capitalization of C$7.6 million.
In addition to McEwen’s purchase, an additional 5 million units will be sold to other investors, for gross proceeds of C$600,000 to fund Inventus’ exploration activities.
The company’s main asset is the Pardo paleoplacer gold project located 65 km northeast of the Sudbury mining district. The current exploration target is a near-surface gold-bearing conglomerate reef that ranges from 1 to 4 metres thick.
A 2018 technical report on Pardo outlined three target ranges for the gold-bearing conglomerate based on the limited exploration work to date, with the largest estimated at 12.5 million tonnes grading 3.5 g/t for a gold content of 1.4 million oz.
The conglomerate, if economically feasible, would be subject to low-cost surface strip mining methods, Inventus said on its website. The company had also billed the project as the “first large-scale paleo-placer gold deposit in North America”.
In 2022, Inventus conducted the first phase of a 50,000-tonne advanced exploration bulk sampling program at Pardo, returning an average head grade of 3.4 g/t gold. The bulk sample program has built confidence of the gold grade and paved the way for an initial resource estimate on the property, the company said.
https://www.mining.com/mcewen-ups-holdings-in-gold-junior-inventus-mining/
mahatmapaul
3 주 전
that's a somewhat deceptive post, since it's a boilerplate article that they apply to various miners. If you type in google the first few words, you get the same article for various other miners.
Basically, it's not about MUX, but about the miners' market in general, so you have to take it with a grain of salt.
JD400
2 월 전
Save Canadian Mining - The Big Push
Sep 17, 2024
Naked Short Selling has cost Canadian small cap companies upwards of $1 Trillion according to Terry Lynch referencing a recent Globe & Mail article.
Terry Lynch is the CEO of Power Nickel and the Founder of "Save Canadian Mining", the small cap stock advocacy group backed by industry giants such as Eric Sprott, Keith Neumayer, Robert McEwen and multiple sponsors who have worked tirelessly and given generously over the last 4 years to conduct research, create reports and meet with key government officials & regulatory bodies - all for the singular purpose of putting an end to the devastating practice of illegal short selling in the Canadian small cap market.
FRIDAY THE 13TH UPDATE VIDEO FOLLOWS BLACK FRIDAY AND GOOD FRIDAY VIDEOS
On a couple of occasions over the past 10 months Save Canadian Mining has held major webcasts for the industry, beginning with the Black Friday event (November 2023) in which Wes Christian and David Wenger discussed the landmark decision in a New York case in which Broker-Dealers could now be liable for failing to fulfill their "Gatekeeping Responsibilities" of monitoring client trading actions
Then came the Good Friday video (March 2024) in which Terry and his team not only discovered the shocking mechanism to facilitate the firehose of naked short selling - but along with it the specific actions that could easily be taken by regulators and/or government officials in order to put an end to it.
Thousands of small cap companies and tens of thousands of investors participated.
As a result of the reaction and reach of that video, which laid the foundation for both a massive industry wide social media campaign and a potential billion dollar plus class action lawsuit against one of Canada’s big banks, Save Canadian Mining was able to secure meetings with leading Ontario Provincial Government officials. At that point, a decision was made to pause the campaign in order to give the talks a chance to bear fruit.
We are going to talk about those talks, as well as, a shocking revelation that came out of a legal document filed with the Supreme Court of British Columbia recently.
RCMP & DOJ RECEIVE EVIDENCE DETAILING EVIDENCE OF COLLUSION BETWEEN BANKS AND REGULATORS TO SUPPRESS THE TRUTH
12 Years
166 Exhibits
3,631 Pages
“A Pattern Consistent With The Definition Of Organized Crime”
Suffice it to say, this 3rd installment of the Save Canadian Mining video series is the most serious and important one yet
SUE + SOCIAL MEDIA PRESSURE + EMBARRASS. THE PLAN TO MOBILIZE SMALL CAP COMPANIES, INVESTORS AND VENDORS
While the class action ramps up, we have put together a plan to mobilize hundreds of small cap companies, their investors and their vendors with a coordinated social media campaign that simply can not be ignored by the banks, regulators and government.
Finally, for investors that are active, vocal and passionate about this topic on social media platforms, there is an Easter Egg waiting for you in this video that you 100% guaranteed will NOT want to miss.
Thank you for now taking the time to watch this video and please be sure to share it with your networks across all of your social media platforms.
Let the Big Push Begin to make Canadian markets fair to all investors.
0:00 PRE-AMBLE
4:00 Doug Ford Talks
6:35 Ontario PC Understanding
7:55 Market Cap Destruction
9:50 Alcohol Over Naked Shorting
12:48 BIM Organized Crime Filing
13:58 Terry's Reaction
18:00 Trillion Dollar Terror
18:35 Stop The Bleeding
19:17 3 Brokers Support
21:25 Walls Closing In
23:20 The Brawl Phase
24:45 The Class Action
27:00 The CIBC "Kiss"
29:40 Joining Forces
31:08 Donations Big & Small
32:00 Search For Pit Bull
35:55 Social Media Reward Plan
41:10 Commodity Market Optimism
Save Canadian Mining
https://savecanadianmining.com
JD400
2 월 전
$MUX Institutional corrupted mining stocks rise on Chinese stimulus
Of course nothing to do with MUX or even mining & metals
Everything to do with corrupted Banksters or as Rob calls it (Markets)
Ambrose Evans-Pritchard: Groundswell builds for massive Chinese stimulus but today wasn't real thing
Submitted by admin on Tue, 2024-09-24 22:07 Section: Daily Dispatches
By Ambrose Evans-Pritchard
The Telegraph, London
Tuesday, September 24, 2024
China urgently needs a stimulus of shock-and-awe proportions, backed by a deep cleansing of its broken banks along the lines of America's "TARP" (Troubled Asset Relief Program) rescue in 2008. The latest package announced today falls far short.
The drumbeat for radical action is by now deafening. It dominated the weekend's China Macroeconomy Forum in Hong Kong, where a chorus of influential voices called for a fiscal blast of up to $1.4 trillion to pull the country out of debt deflation and cosmic gloom.
iu Shijin, a former rate-setter at the People's Bank of China, said the government should issue special bonds worth 8% of GDP to boost social spending, pensions, and health care. And to convert the galactic glut of unsold flats into homes for the 180-million-strong army of migrant workers caught in the no-man's land of the semi-feudal Hukou system.
Mao Zhenhua, co-director of the Renmin Institute of Economic Research, wants a similar package of $1.4 trillion -- or 10 trillion yuan -- proposing direct cash transfers to citizens akin to Covid cheques in the West.
The authorities have been dribbling out stimulus for months but it has been too half-hearted to arrest the slide into a Keynesian liquidity trap. Disappointing data over recent weeks have finally caused the dam to break. The PBOC cut the reserve requirement ratio by 50 points today. There were targeted measures to prop up the crumbling housing market.
Raymond Yeung, China strategist at Australia's ANZ bank, said the measures will inject a trillion yuan into the banking system but do not add up to a genuine bazooka. "We question whether today's package can lift China from the deflationary spiral. Massive easing and a complete change in mindset are required," he said. ...
... For the remainder of the report:
https://www.telegraph.co.uk/business/2024/09/24/groundswell-building-for-massive-chinese-stimulus/
*https://www.gata.org/node/23385
*Subdivisions: Neil Peart nails it. Of course.
JD400
2 월 전
If my mining stocks are stalled before the precious fed pivot tomorrow why are they not going up today.
Lost in Center field
Black and Yellow Gold Nearing Breaks as Participants Regroup
The two quintessential commodities crude oil and gold both appear to be near inflection points.
Carley GarnerSep 16, 2024 6:45 PM EDT
For this article, we have turned our attention to the two quintessential commodities: crude oil and gold. As we generally do, we are paying attention to what the Commitments of Traders (CoT) report issued weekly by the Commodity Futures Trading Commission tells us.
We suspect both products could be nearing a break in the trend as market participants regroup. Let’s start with oil.
Black Gold (Crude Oil)
Crude oil speculators haven’t gone short the market, but their long positions have dwindled to about 200,000 net long futures; levels that are generally supportive of prices.
In the mid-2010s, each time speculators held this small of a bullish position, the oil market found a reason to tag $20.00 to $30.00 to the price of oil. In 2016, a similar setup on the CoT chart pushed prices from about $30.00 per barrel to nearly $80.000, and in 2023, we saw a rally from the low $60.00s into the $90.00s. It is still unknown if speculators will continue their unwind to push oil prices much lower or if we will see another price bump as speculators put long positions back on, but we are leaning toward the latter.
The weekly crude oil chart depicts technical support roughly between $65.00 and $60.00 per barrel. In fact, last week’s sudden flush-out might have been the low for the move. In any case, there is a good argument for being bullish on dips as we advance.
The 200-week moving average near $78.00 is still in an uptrend, and it would be par for the course to see oil prices make another run at it. If the market can chew through it, trendline resistance at about $80.00 will present another challenge to the bulls, but above this level, we could see a nice boost as traders unwind their deflation trades (long stocks, short commodities). Who knows? Maybe $90.00 is still in play.
Gold of the Yellow Variety
Just as everyone is finally starting to get on the bullish gold bandwagon, it feels like the rug could be pulled from beneath the market.
According to the CoT report, large speculators hold one of the most significant net long positions ever recorded in gold futures. In the past, this group getting aggressively bullish hasn’t always resulted in immediate selling pressure, but it might be a sign that the “easy” money (if such a thing exists) has been made on the upside. Things could get pretty rocky as we advance.
Seasonality doesn’t offer the bulls any comfort. According to our friends at MRCI, the last 15 years of price data suggest a seasonal high in early September, followed by about three months of weakness.
Lastly, we revisit the monthly chart of gold. We have been following and sharing this chart for two or more years to support the idea of a run to about $2,600 (the target started around $2,450/$2,500, but due to the passing of time and the slope of the trendline, the new target is $2,600/$2,650). In any case, we are roughly there.
If you made money on the way up, be sure to lock-in, or at least protect gains. If you are a bear, this is probably a time to be net-short gold in a small way while we see what happens with the Fed meeting and the U.S. election.
All along, we have assumed that the 2023/2024 gold market is a replay of the 2010/2011 rally. Thus far, that has been a relatively accurate take.
If we continue to follow the 2010/2011 game plan, the highs in gold are probably near. The RSI indicator on this chart displayed three rally waves to conclude the 2011 rally in which the middle wave produced the highest RSI reading. With this in mind, we suspect the third wave of the current RSI pattern will fall short sooner rather than later. Perhaps this week’s Fed meeting will be the catalyst for lower prices. It should also be noted that the 2011 high occurred in September. Never underestimate the market’s tendency to repeat history.
Conclusion
We’ve seen market participants become comfortable with the idea of lower crude oil and higher gold prices. Still, perhaps everyone in a position to act on this opinion has already done so.
In short, the oil speculators have liquidated long holdings, and gold bulls have likely deployed the majority of their capital. Unless we get a continuous stream of overwhelming fundamental news confirming these stances, the most likely scenario is a trend reversal (firmer oil and softer gold).
https://pro.thestreet.com/market-commentary/black-and-yellow-gold-nearing-breaks-as-participants-regroup
*John Fogerty - Centerfield
JD400
2 월 전
Drilling Results – How Can You Determine if a Mining Company’s Drill Results are of Low, Medium or High Grade
Drilling results for base metals are typically reported in percentage per tonne (%), while precious metals are reported in grams per tonne (g/t). As an investor, it’s crucial to understand if a drill result indicates low-, medium-, or high-grade mineralization, as this can provide insight into the potential financial outcomes of the deposit.
After analyzing and interpreting various drill reports to differentiate between low-, medium-, and high-grade mineralization, I have summarized my findings in the following table:
Low Grade, Medium Grade and High Grade Mineralization
here's the table >>>>>>Click
https://undervaluedequity.com/drilling-results-how-can-you-determine-if-a-mining-companys-drill-results-are-of-low-medium-or-high-grade/
Hope this helps WATM The Fox hit the home run
JD400
2 월 전
McEwen Mining: Navigating Challenges with Strong Exploration Potential and Improved Financial Metricsnn
PUBLISHED / MODIFIED SEP 11 2024
CSIMARKET TEAM / CSIMARKET.COM
In a recent update, McEwen Mining Inc. highlighted significant developments in its Grey Fox exploration project, showcasing accessible mineralization and promising exploration potential. Despite facing a challenging market, evidenced by a 6.47% decline in share price during the third quarter of 2024, the company continues to move forward strategically.
The exploration update reveals a wealth of opportunities within the Grey Fox property. The site possesses mineralization that is not only accessible but also conducive to future resource extraction, underscoring the company?s commitment to enhancing its production portfolio. This comes at a time when McEwen Mining is aggressively seeking to optimize its asset base, positioning itself for a more robust performance moving forward.
In addition to exploration advancements, McEwen Mining reported encouraging financial performance in its second quarter of 2024. The company boasted a return on assets (ROA) of 12.64%, significantly outperforming its historical average of -12.31%. This improvement can be attributed to a substantial growth in net income, which surged from 7.99% in the first quarter of 2024 to its current level, reflecting the effectiveness of McEwen?s operational strategies.
Continues here >>>> https://csimarket.com/news/mcewen-mining-navigating-challenges-with-strong-exploration-potential-and-improved-financial-metricsnn2024-09-11110266
JD400
3 월 전
Recent and Upcoming McEwen Mining and McEwen Copper Presentations
Thursday, August 22, 2024 4:05 PM PDT
GLOBENEWSWIRE
TORONTO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) and McEwen Copper Inc. are pleased to announce their participation in Fastmarkets’ “Argentina: An emerging powerhouse for copper and lithium” webinar and in three upcoming industry conferences.
In the Fastmarkets webinar (available here), McEwen Mining’s CEO and Chief Owner Rob McEwen participated in a panel discussion exploring Argentina’s vast copper and lithium reserves and how these resources are positioning the country as a pivotal player in the global energy transition.
For the upcoming conferences, Rob McEwen will be joined by Michael Meding, Vice President and General Manager of McEwen Copper. Rob McEwen will provide insights into McEwen Mining’s projects and operations, while Michael Meding will present on the Los Azules copper project.
Jefferies Global Metals & Mining Conference, September 4-5, 2024, New York, NY
Presentation Details Date: Wednesday, September 4, 2024 Time: 3:40-4:10 PM EDT Link: https://wsw.com/webcast/jeff303/mux/1724250 (Recording will be available at this location for 90 days following the presentation)
H.C. Wainwright 26th Annual Global Investment Conference, September 9-11, 2024, New York, NY
Presentation Details Date: Monday, September 9, 2024 Time: 7:00-7:30 AM EDT Link: https://journey.ct.events/view/631ba475-0941-405b-9ed4-c1bc35dde713 (Recording will be available at this location for 90 days following the presentation)
2024 Beaver Creek Precious Metals Summit, September 10-13, 2024, Beaver Creek, CO
Presentation Details Date: Tuesday, September 10, 2024 Time: 4:15-4:30 PM MDT (6:15-6:30 PM EDT) Event Link: https://www.gowebcasting.com/C1664 (Presentations will be archived at https://www.precioussummit.com)
The links to these presentations will also be available on our company’s Media page:
https://www.mcewenmining.com/media/overview[
https://www.mining.com/press-release/?id=66c7d12b93921002d58ad41c
JD400
3 월 전
Argentina to sign deal with US to boost metals mining
Bloomberg News | August 21, 2024 | 9:52 am News Latin America USA Copper Lithium
Argentina will sign an agreement with the US to draw more investment and trade in critical-minerals mining, a State Department official said, part of an ongoing US effort to boost supply chains for the metals that don’t involve China.
President Javier Milei’s government will sign the agreement with the US during a visit to Argentina this week by US Under Secretary of State Jose Fernandez. Argentina has vast resources of copper and lithium but has only tapped a tiny portion of them.
The agreement with Argentina will make it easier for the nation to work with countries in the Minerals Security Partnership, a US-led grouping that includes 14 countries and the European Union. The strategy aims to ease dependence on China for minerals that go into electric vehicle batteries and solar panels by linking foreign investors with mining projects and adhering to strict environmental standards.
“It’s a way for Argentina to literally make pitches to 14 countries and the EU in one fell swoop,” Fernandez said in an interview before the announcement. “Producing countries want the kinds of investments that we’re proposing, investments that will benefit communities, that will bring growth, that will observe national laws.”
Fernandez will also travel to Ecuador and Peru for meetings on trade, investment, sustainable agriculture and a separate regional initiative known as the Americas Partnership for Economic Prosperity.
Launched in 2022, the US-led minerals push has so far resulted in high-level talks but few tangible investments. And while Milei is adamant about aligning with Washington, it will be tough to draw Argentina out of Beijing’s orbit given China is its largest trading partner after Brazil.
Before the announcement, the State Department welcomed people to register for a Minerals Security Partnership forum event in Buenos Aires on Aug. 23 to “learn more about lithium and copper extraction opportunities in Argentina.” Describing the country as a global leader for new resource development, it added that “there are many lithium and copper projects available for investment across several provinces.”
The minerals agreement doesn’t address Argentina’s inability to qualify for incentives for lithium production under the US Inflation Reduction Act of 2022, a law aimed in part at speeding EV adoption. Argentina is currently locked out of those benefits because it doesn’t have a free-trade deal with the US, and Argentine officials have been seeking access.
(By Eric Martin)
https://www.mining.com/web/argentina-to-join-us-group-for-spurring-metals-investments/
Good Morning
Coldplay - Viva La Vida (Live In São Paulo)
JD400
3 월 전
Gold price surpasses $2,500 for first time ever
Staff Writer | August 2, 2024 | 8:19 am Markets USA Gold
Gold surpassed $2,500 per ounce for the first time in history on Friday in the wake of rising geopolitical tensions and new data indicating a weakening US economy.
Gold contracts for December delivery reached an all-time high of $2,522.50 in the early trading hours, before shedding its gains to trade at $2,475.90 an ounce by 11:00 a.m. ET.
Spot gold posted a marginal loss of 0.5% at $2,432.86 per ounce, having hit as high as $2,477.10 — just within grasp of its all-time peak of $2,483.73 set earlier this month.
Bullion has gained about 3% so far this week, on track for its best week since April, as rising safe-haven demand from Middle East tensions and expectations of rate cuts made the metal more appealing to investors.
Meanwhile, US 10-year yields dropped to their lowest since December and the dollar index hit its lowest since March after data showed that employers added fewer jobs in July than economists had forecasted, while the unemployment rate increased to 4.3%.
The data follows comments from Fed Chair Jerome Powell, who on Wednesday said that rates could be cut as soon as September if the US economy follows its expected path.
“The marketplace just now is factoring in a better-than-70% chance for a 50-basis-point cut by the Fed at the September FOMC meeting,” said Jim Wyckoff, senior market analyst at Kitco Metals in a note to Reuters.
“Lower yields, some safe-haven buying and then the idea of a weakening economy which is bringing rates lower along with the dollar, all of those are in support of the gold market,” said David Meger, director of alternative investments and trading at High Ridge Futures.
(With files from Reuters)
Read More: Global gold demand reaches Q2 record — report
https://www.mining.com/gold-price-surpasses-2500-for-first-time-ever/
Meanwhile Gold miners sold off into oblivion like attending a funeral for grandma who was mugged in the alley and they stole her purse
Hehe
Elton John - Funeral For A Friend / Love Lies Bleeding (Live At Madison Square Garden)
JD400
4 월 전
China uses Shanghai futures to drain Western gold, Maguire tells LFTV
Submitted by admin on Fri, 2024-07-12 13:28 Section: Daily Dispatches
1:23p ET Friday, July 12, 2024
Dear Friend of GATA and Gold:
London metals trader Andrew Maguire uses this week's "Live from the Vault" program from Kinesis Money to describe how he sees China using derivatives on the Shanghai Futures Exchange to extract gold from Western markets and hedge itself against what it expects will be more U.S. economic sanctions under a Trump administration.
Maguire adds that the U.S. Federal Reserve is now the only major trader short gold, and he shows charts indicating steady upward stairsteps for both gold and silver prices. Both metals, he says, are explosive.
The program is 42 minutes long and can be seen at YouTube here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
JD400
4 월 전
Thanks Man ! $MUX starting it's run.........
Panic short-covering ignites Comex copper as shipments fail to arrive
Reuters | July 5, 2024 | 9:31 am Markets USA Copper
CME cobalt contract use soars above LME as big players join
Credit: CME Group
Comex copper futures surged on Friday as some players bought back bearish, or short, positions to reduce their exposure due to expected shipments of copper failing to arrive in the United States, traders and analysts said.
A frenzied rally based on speculative buying sent copper futures on both Comex and the London Metal Exchange (LME) to record peaks in May, partly due to a short squeeze on Comex
Since then copper prices have slid, partly due to expectations that shipments of material would arrive in the United States allowing the cover of exposed short positions.
Short positions can be bets on lower prices or producers hedging their output. A short squeeze occurs when parties holding such positions are forced to buy them back at a loss or deliver physical copper to close them out.
“Some participants cannot stomach the volatility and there is certainly some panic covering to avoid the moves we saw last time around,” a trader said.
“But if anything the situation could potentially be more volatile due to the lack of usual participants.”
The Comex buying has led to a wide spread or arbitrage between prices on the two exchanges, with the Comex premium doubling to more than $300 a metric ton over the past two days.
August futures on Comex on Friday climbed to a five-week high of $4.6965 a pound or $10,354 a metric ton and was up 2.5% at 1500 GMT. The market hit a record of $5.1015 a pound on May 21.
That compares to an intraday peak of LME three month copper of $10,000 and a gain of 0.7%.
“Inventory that was supposed to come to the US clearly hasn’t arrived,” said Dan Smith, head of research at Amalgamated Metal Trading.
It was unclear what was causing the delay in shipments to the United States.
The lack of shipments is evident in copper inventories in CME warehouses, which have tumbled 71% since late March to 8,947 tons, the lowest since 2008, data shows.
“People have already been burned on this once, so they’re much more cautious now, but we’re all a bit nervous it’s going to blow out again,” Smith added.
During the May short squeeze commodity traders Trafigura and IXM were looking to buy physical copper to deliver against large short positions, but it was unclear which participants were covering positions at the moment.
Comex is owned by the CME Group while the LME is owned by owned by Hong Kong Exchanges and Clearing Ltd.
(By Eric Onstad; Editing by Veronica Brown and David Evans)
https://www.mining.com/web/panic-short-covering-ignites-comex-copper-as-shipments-fail-to-arrive/
Bon Jovi - Runaway HQ
Hope Y'all had a good holiday ☺️
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