A roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
- The spike in oil prices does not bode well for gold miners, according to Exploration Insights’ Joe Mazumdar.
Mazumdar spoke to Kitco in mid-September at the Precious Metals Summit 2023 in Beaver Creek, Colorado. Mazumdar is editor and analyst of Exploration Insights. Brent Cook, who is founder of Exploration Insights, also joined the interview. Mazumdar noted that oil prices are up due to policy actions by Russia and China. Production cuts by OPEC+ through year-end pushed oil higher. On Tuesday, West Texas Intermediate crude oil prices pushed to a nearly one-year high, testing resistance above $93.50 per barrel. Oil prices have rallied more than 37% from their mid-July lows."[It's] making it harder for them to show decent cash flow for probably the second half of this year," said Mazumdar.
The junior gold miners have generally fallen out of favor, noted Cook. Even good news can turn into bad news for a junior miner. "News releases are having minimal positive effects, if at all," said Cook."It's negative more often than not because people in the sector...they're just looking for an out. It's such an illiquid market right now," said Cook, noting that investors can sell against the good news to exit their position.Michael McCrae For Kitco News
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