Close: London Session | Forex, Metals, Oil, Agriculture December 08, 2020



The dollar edged up due to its safe-haven appeal, while gold was little changed. The U.S. dollar edged up due to its safe-haven appeal, while gold was little changed.


The project is expected to be in commercial production in FY2022, generating $24 million in revenue for Royal Gold even at a conservative silver price of $21.00/oz. Higher steel prices in recent months have helped U.S. Steel raise enough cash to complete the purchase sooner than expected, the person familiar with the matter said. One of the names caught up in the sector-wide carnage has been Royal Gold (RGLD), with the stock sliding nearly twice as much as gold.
In fact, Royal Gold has one of the highest revenue per employee rates in the market, with total revenue per employee of $17,181 as of FY2019. His thoughts on gold are captured each week on a program called Gold Game Film in collaboration with Kitco News and Meanwhile, gross margins hit a new multi-year high, with Royal Gold reporting gross margins of 84.90%. Fortunately, production was up at the majority of Royal Gold’s other assets, and this was actually a solid quarter if not for the weakness at these two assets.
For those unfamiliar, Royal Gold purchased an 80% payable silver stream on the project that lies in the Kalahari copper belt in northwestern Botswana. The mine is expected to produce 62,000 tonnes of copper and 1.9 million ounces of silver per annum over a 21-year mine life. They have been awarded a two-year major earthworks construction contract at a gold mining project in Northern Ontario valued at over $250 million.


Going into 2021, it has $210 million per $1 change in oil prices sensitivity, meaning the potential for much higher cash flow if prices recover. They have key long-term contracts with Sunncor/Fort Hills, Syncrude, Imperial Oil, and CNRL up in the oil sands which is a short drive from Edmonton. That means, with current crude oil prices at >$46 WTI, not counting extra taxes/lifting costs/fees, the company can have >$2.5 billion in fresh revenue. The company has participated in November’s partial recovery in oil prices, with its share price approaching $20/share.
Current WTI crude oil prices are more than $46/barrel; however, should they drop to less than $40/barrel, that’d put the company in a much worse position. However, with a vaccine on the horizon, and WTI crude oil prices >$46/barrel, investors are ignoring the company’s potential. Even during one of the largest shocks to many sources of oil demand in a lifetime, prices have remained at $39/barrel on average this year.
BEFORE THE BELL Futures for Canada’s main stock index fell weighed by lower oil prices as new lockdowns raised concerns about future demand. In the last 15 years, all but two years have seen average oil prices over $50/barrel. The long haul joint ventures were done to prevent the discounting of oil prices that happened during the last boom.

United States

Stocks opened modestly lower Tuesday.The head of the Trump administration’s vaccine development effort, Dr. Moncef Slaoui, has said he believes the entire U.S. population could be inoculated by June. The Fed and the Treasury kept adjusting the program, lowering the size of the size of the minimum loan and rolling out additional programs to help companies qualify. The Fed had wanted the programs to remain open.As a result of Mnuchin’s decision, the Fed announced in late November it would not accept new applications after Dec. 14.
But bankers say it takes about a month to underwrite the loans, and from several days to a couple of weeks to get Fed approval. Follow US contracts on the Dow, S&P, NASDAQ and Russell 2000, and global stocks were lower on Tuesday amid ongoing political uncertainty. US contracts on the Dow, S&P, NASDAQ and Russell 2000, and global stocks were lower on Tuesday amid ongoing political uncertainty. This additional flow of money should end up buoying the US economy and the the stock market from a number of angles.
With the ungrounding of the Boeing (BA) 737 MAX in the US, Brazil, Europe and Canada likely following early next year, Boeing entered a new phase.
Meanwhile, in the US, the FDA published a report Tuesday morning from the panel convened yesterday to start examining the data from the Pfizer-BioNTech vaccine trials. MSNBC still ranked third in cable news behind CNN and Fox News (NASDAQ:FOX) last month.


Perhaps in an attempt to prevent anybody else from running off, Beijing is rounding up and arresting activists left and right. Participants were protesting the new national security law, which had just been approved by top CCP leaders in Beijing and signed by President Xi. Still, Beijing is doing a pretty good job of making it clear that Hong Kong is no longer safe for those who assiduously supported the pro-democracy movement.


The trade could also work against other EUR core or semi-core countries but the trade would be more sensitive to ECB PEPP increases in case. Whether the UK exits the EU with a trade deal or not, the economy is in for a rough ride that will keep investors looking to minimize risk. PIMCO Difficult U.K. Prime Minister Boris Johnson said talks with the European Union are “very tricky” but he still hopes to reach a deal. European equities were lower as hopes of a Brexit deal faded amid a last-ditch attempt to find a solution.
Delighted to announce agreement in principle on all issues in the UK-EU Withdrawal Agreement Joint Committee. Moreover, the UK will have to back down over international law-breaking legislation that would override the Brexit withdrawal agreement. European shares have opened flat this morning as all eyes are on whether or not a Brexit deal can be reached between the UK and the EU. Let’s not distract ourselves from the good news, worry about the crisis in the Brexit negotiations, or the fact infections are swelling across California triggering a mass lockdown.
Five Things Follow Us Get the newsletter McConnell remains stimulus roadblock, the election is nearly over, and Brexit talks flounder. The UK and EU has struck a compromise “on all issues” in the Withdrawal Agreement Joint Committee, Michael Gove has confirmed.