As the new week kicks off, here’s a round-up of the Investing News Network’s top stories last week covering the coronavirus pandemic.
The COVID-19 pandemic has seen more than one in 10 workers lose their jobs in the US in the past three weeks, with neighbor Canada reporting unemployment for more than 1 million in March.
As of last week, the US had by far the most confirmed coronavirus cases of any country in the world, with over 430,000 people infected. Lockdowns continued globally last week, with South Africa extending self-isolation measures for another two weeks; similar rules have been enacted in Spain, while Italy said it is set to keep everyone at home until May 3.
The outbreak has now infected more than 1.4 million people, with the death toll reaching over 87,000 as of last Wednesday (April 8). Of the more than 400,000 closed cases, over 319,000 have recovered.
To keep investors up to date with what’s been going on in the mining industry related to COVID-19, we’ve put together a round-up of the Investing News Network’s (INN) top stories last week on the pandemic. All information and data were current as of last Wednesday.
INN’s COVID-19 coverage: Top stories this week
With countries around the world on various levels of lockdown due to COVID-19, web-based events continue to offer investors a chance to connect with industry leaders.
Last week, Grit Capital hosted a Masters of Mining webinar featuring major names in the resource space. Among the participants was Ross Beaty, who has a reputation for running a slew of successful mining companies and financially backing many more.
In a brief talk, Beaty covered the commodities he likes and doesn’t like in the current environment, sharing his views on where there is potential for profit.
Mine and project closures due to COVID-19 have begun to drive the spot price of uranium higher.
After spending the last year stuck below US$27 a pound, uranium has started to exhibit strength in the last few weeks, climbing by US$3 to reach US$27.40.
The sector, which has been plagued by low prices below US$50 for the last eight years, has been further impacted as countries around the world take a variety of measures to stop the spread of the coronavirus, including shutting down mine operations.
The coronavirus brought the entire lithium supply chain to a standstill, but that has started to change as China slowly gets back to work, according to Chris Berry of House Mountain Partners.
“The safety of everyone involved is the most important thing here, so a measured resumption of supply chain activities is the best course of action,” Berry told INN.
“I have no concerns over lithium supply, but am particularly worried about demand and the near certainty of a global recession and its effects on electric vehicles and energy storage uptake.”
INN’s COVID-19 coverage: The bright side
The stock markets had a bright end of the trading week last Thursday (April 9), seeing gains on the back of a new stimulus program from the US Federal Reserve.
The US central bank announced a US$2.3 trillion package, saying it will work with banks to offer four year loans to companies of up to 10,000 employees, and will directly buy bonds from states and more populous counties and cities. On the other side of the world, Eurogroup finance ministers have also agreed on an emergency rescue package aimed at responding to the coronavirus crisis.
In commodities, gold was on track for a weekly gain, staying above US$1,600 per ounce during the entire five day period and almost testing US$1,700. Silver also made gains, changing hands for US$15 per ounce, while base metals saw a rebound by the end of the week.
Last week, major producers stepped up their response to help countries and communities during the pandemic. Giant miners Anglo American (LSE:AAL), Vale (NYSE:VALE), Barrick Gold (NYSE:GOLD), Glencore (LSE:GLEN) and Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) have all launched different initiatives and pledged millions to support the fight against the virus.
More COVID-19 coverage from INN
Click the links below for more of INN’s commodity-specific coverage of COVID-19:
- Gold and COVID-19: Who’s Reacting and How?
- Silver and COVID-19: Who’s Reacting and How?
- Platinum, Palladium and COVID-19: Who’s Reacting and How?
- South African Economy Uncertain as COVID-19 Closes Mines
- Copper and COVID-19: Who’s Reacting and How?
- COVID-19: Copper Mines Impacted by Coronavirus Measures
- Zinc and COVID-19: Who’s Reacting and How?
- Lithium and COVID-19: Who’s Reacting and How?
- Cobalt and COVID-19: Who’s Reacting and How?
- Diamonds and COVID-19: Who’s Reacting and How?
- Potash and COVID-19: Who’s Reacting and How?
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.