Today’s Market View – Empire Metals; Bushveld Minerals; IronRidge Resources;

SP Angel . Morning View . Tuesday 27 04 21

Biden looks to pass 80% clean energy from US power generators by 2030

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Empire Metals* () – ​Drilling restarts at Eclipse

Bushveld Minerals* () – Mustang Energy Plc acquires 11% interest in Enerox GmbH through VRFB Holdings for $7.5m

Fortuna Silver Mines to buy Roxgold for $884m cash-and-stock deal

IronRidge Resources* () – Assore supports IronRidge in £12m placing

* () – Appointment of director and creation of advisory board

Rambler Metals and Mining* () – 2020 annual results

Scotgold Resources* () – Operational update from Cononish

Vast Resources () – Further progress at Baita Plai

US – Biden Administration looks to pass legislation seeking 80% clean energy from US power generators by 2030 – Reuters

• The legislation if passed will mark a moment of huge transformation for the US energy industry
• It will herald a new era of construction for offshore windfarms and for onshore solar instillations
• The move will undoubtedly drive strong demand for copper, rare earths and other related metals

Copper – The International Copper Study Group ‘ICSG’ report at a small surplus of 28,000t global copper supply / demand vs a 34,000t deficit in December

• Copper production was 2.10mt vs consumption of 2.076mt

Watchdog warns Diamond Council over ads

• The National Advertising Division (NAD) rebukes National Diamond Council over environmental claims.
• The NDC has been told to stop making assertions that lab-grown diamonds emit three times more carbon than mined diamonds as evidence was not sufficient.
• The NAD also called on the NDC to stop claims that mined diamonds were becoming rarer by the day.

Economics

US – Durable goods orders 0.5% in March vs -0.9% in February

• ex transport 1.6% in March vs -0.3% in February
• Dallas Fed manufacturing index 37.3 in April vs 26.9 in February

Inflation – Logistics, Lies and Raw Materials

Logistics, disruption, raw materials and Covid-19 working practices are all coming together to fuel inflation

• The Cost of containers from China to the West has trebled.
• The Availability of containers from China to Europe is severely restricted.
• Disruption in unloading containers in congested Western ports is adding to delays and cost.
• Inflation is coming whether we like it or not
• Policy makers are likely going to stand back and let it rip through as it inflated borrowings away.
• Inflation looks like the lesser evil but mortgage costs will need to be held back for homeowners to prevent very substantial levels of default.
• At what point will The Fed, ECB, BoJ and BoE raise rates?  
• How will the bond market react to rising inflation?
• How will governments finance further borrowing is market rates are so much higher?

Chile – Port workers to proceed with protests over pensions while mining bodies mull involvement

• A group of Chilean port workers began protests against the government’s pandemic relief policies and pensions.
• Protests at ports began yesterday afternoon and are expected to involve up to 6,000 workers.
• There are no immediate reports of copper shipment disruptions and mining unions have so far refrained from taking industrial action.
• A group representing 15,000 workers at Codelco are still mulling the situation, while workers at Chuquicamata vowed to join the protests.
• The Mining Federation of Chile’s 9,000 private-sector members wont stop work for now, despite supporting the cause.
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Peru – Sol slumps to…