Today's Morning View – Gold and Base metals rise as Chinese smelters lockdown

SP Angel . Morning View . Thursday 24 03 22Gold and Base metals rise as Chinese smelters lockdown. Ariana Resources (AAU LN) – Exploration alliance with NewmontAtalaya Mining (ATYM LN) – Record 2021 copper output pushes 195% rise in EBITDA to €199.1m

SP Angel . Morning View . Thursday 24 03 22

Gold and Base metals rise as Chinese smelters lockdown

Ariana Resources (AAU LN) – Exploration alliance with Newmont

Atalaya Mining (AIM:ATYM, TSX:AYM) (ATYM LN) – Record 2021 copper output pushes 195% rise in EBITDA to €199.1m

Atlantic Lithium* (ALL LN) – Ewoyaa MRE grows +40% with ~70% in the Indicated category

Bluejay Mining* (JAY LN) – BUY – KoBold Metals ramp up work program at Disko-Nuussuaq as Bluejay raise $7m to complete feasibility on Disco ilmenite mine

Horizonte Minerals (HZM LN) – NED appointments

KEFI Gold and Copper* (KEFI LN) – Exploration at new Al Godeyer licenses identified similar to Hawiah gold/copper mineralisation

Gold climbs as EU and US discuss additional Russian sanctions, ETF holdings extend rise

• Gold climbed to $1,944/oz, having settled around $1,925/oz earlier this week.

• The move suggests gold has shrugged off headwinds in both Powell’s comments on a more aggressive rate hike schedule and rising 10-year Treasury yields.

• The rally was triggered by the US and EU’s plans to slash dependency on Russian oil and gas as the G7 meet in Brussels today.

• Investors look to gold as a hedge in anticipation that additional sanctions will support oil prices, subsequently adding to inflationary pressures in the West.

• Gold demand is visible in ETF holdings, which have risen for a 10th day in a row, up 361,288oz today and 7.7% this year. (Bloomberg)

Shanghai nickel jumps 17%, LME nickel up 15% as volatility continues to shake market

You have to love the LME nickel market in particular with prices trading 15% higher today to their trading limit at $37,235/t.

• Shanghai nickel prices tracked the LME 15% jump from the previous day, closing at $36,666/t.

• Analysts suggest Tsingshan, (the antagonist of the $100,000/t LME nickel squeeze) among others, have held significant short positions on the nickel market.

• Volumes have significantly shrunk on both exchanges, with further volatility expected as a result of a thin trading market.

• SHFE brokers are reporting net-long positions on nickel futures.

• Nickel has always been a dangerous metal. It’s like a big, old, Croc which lies still, waiting for its prey and just when the wildebeest are splashing in the liquidity it gorges on anything it can snap at.