The June quarter of 2019 was a volatile one for commodities. Global real GDP growth estimates continued to be revised down, concerns resurfaced over the health of global trade with threats of new U.S. tariffs and industrial indicators missing estimates. The main industrial metals copper, nickel and zinc each fell over the quarter. Gold markets have been revitalized by the Federal Reserve rate cut, yet only late in the period. Consequently, an expected return to confidence in the mining industry after the price rebound of the first quarter did not materialize. Total finance raised in the sector rebounded strongly to the highest level since the third quarter of 2017, yet this was driven by the larger market cap companies paying down debt or for acquisitions. Drilling activity and initial resource announcement metrics both hit multi-year lows, leading our Pipeline Activity Index to its lowest in over three years.
A raft of new tariffs implemented by the U.S. in its trade dispute with China, retaliatory action in the pipeline and a rapid devaluation of the Chinese renminbi have already come to pass in the third quarter. Copper and zinc have hit fresh lows, while nickel and gold have soared.
With such uncertainty persisting, join us to review the quarterly performance of the mining sector, and hear our views on the outlook for 2019.
June 2019 Quarterly Review:
- Commodity price trends, drivers and estimates
- Drilling activity and exploration metrics
- Mergers and acquisitions
- Quarterly financing activity
- Industry market capitalization