Why Gold and Copper Are Making Big Moves

I had the opportunity this week to speak at the London AIM Summit, where presenters and attendees were cautiously optimistic about the economy.

My family and I also visited Oxford. I was surprised to see so many Chinese tourists in large groups, confirming a recent survey by Dragon Trail International that found that close to 27% of Chinese people listed Europe as a top travel destination. This is very good news for not just the travel industry but also the luxury industry, which has come to rely on wealthy shoppers from China.

Since the country lifted pandemic-era restrictions at the beginning of last year, outbound travel has been slow to improve, but a full rebound could be within sight. According to data analysis firm ForwardKeys, Chinese bookings between April 27 and May 5 for international departures were down just 7% compared to the same period in 2019. Trips to the U.K. beat out all other Western European destinations.

I expect to see load factors rise throughout the quarter as enthusiasm for outbound travel to Europe expands.

Central Banks Supporting the Gold Market

Geopolitical tensions have escalated, influencing global financial markets, and two commodities in particular have emerged as pivotal players: gold and copper. These metals are not merely survivors of market volatility but are thriving, charting a course that I believe savvy investors would be wise to monitor.

As I’ve said countless times before, gold has long been considered a store of value in turbulent times, and now is no exception. Prices are near all-time highs, reflecting its enduring appeal during periods of uncertainty.

Central banks, particularly in emerging markets, are increasing their gold reserves. The first quarter of 2024 saw institutions purchase a record 290 tons of gold, according to the World Gold Council (WGC). This unprecedented amount highlights a strategic shift toward the metal as a reserve currency and away from the U.S. dollar.

High Demands Meets Tightening Supply

While gold secures its position as a safe haven, copper is making headlines for different reasons. Often referred to as “Dr. Copper” for its ability to predict economic trends due to its widespread industrial applications, copper has also seen a significant price increase in recent days. The industrial metal climbed to a two-year high, supported by strong global economic activity, particularly surging demand driven by energy transition technologies like electric vehicles (EVs), wind and solar.

The global copper market is tightening. Production challenges, such as stoppages and declining ore grades in major South American producers, are anticipated to limit supply growth this year, though rebound is expected in 2025.

Despite these challenges, the demand for copper continues to grow, fueled by its critical role in green energy solutions. The International Copper Association (ICA) forecasts that copper demand will increase from 28.3 million metric tons in 2020 to 40.9 million metric tons by 2040, with a compound annual growth rate of 1.85%.

Manufacturing Costs and Commodity Impacts

The global manufacturing sector provides further insights. The JPMorgan Global Manufacturing PMI saw a slight decline to 50.3 in April from a 20-month high of 50.6 in March, but it remains above the neutral mark, indicating expansion. This resilience in manufacturing suggests a sustained demand for industrial metals, reinforcing the bullish outlook for copper.

Rising input costs and selling prices within the manufacturing sector point to building price pressures, likely contributing to inflation concerns. Such economic indicators are critical for investors to consider as they assess the potential impacts on commodity prices and investment returns.

The $1.8 Trillion Drive Toward a Low-Carbon Economy

The shift toward a low-carbon economy is not just a policy preference but a potential investment theme. BloombergNEF reports that global investment in the energy transition reached a staggering $1.8 trillion in 2023, nearly doubling from 2020 levels. Such investments, particularly in regions like Europe, the Middle East and Africa (EMEA), are expected to drive further demand for copper, given its essential role in electrification and renewable energy infrastructures.

Balancing Portfolios with Gold and Copper

For investors, the implications of these trends are clear. Gold remains a critical asset in any diversified portfolio, especially for those seeking to hedge against geopolitical risk and potential inflation. Persistently strong demand from central banks further supports the investment case for the yellow metal. I always recommend a 10% weighting, with 5% in physical gold (bars, coins, jewelry), the other 5% in high-quality gold mining stocks, mutual funds and ETFs.

Not to be outdone, copper presents a compelling growth story tied to the global economic recovery and the transition to green energy. With the expected increase in demand and current supply constraints, prices may continue to rise, presenting a valuable opportunity for investors.

Index Summary

• The major market indices finished up this week. The Dow Jones Industrial Average gained 1.14%. The S&P 500 Stock Index rose 0.55%, while the Nasdaq Composite climbed 1.43%. The Russell 2000 small capitalization index gained 1.68% this week.
• The Hang Seng Composite gained 6.49% this week; while Taiwan was up 1.04% and the KOSPI rose 0.76%.
• The 10-year Treasury bond yield fell 17 basis points to 4.49%.

Airlines and Shipping

Strengths

• The best performing airline stock for the week was Azul, up 13.3%. According to the International Aircraft Dealers Association (IADA), the pre-owned business aircraft market saw an increase in sales in the first quarter with 253 resale transactions, up from 239 in the same period a year ago. The association continues to view this market as healthy with signs of rebalancing after a very strong 2021/2022.
• Spot rates posted four consecutive weekly increases and are up 12% versus March-end as capacity is absorbed by Middle East tensions and liners implementing general rate increases (GRI). Volumes are up double digits overall from an easy comparable base, according to Bank of America.
• Aena EBITDA was reported at €581 million, above the UBS estimate of €520 million. The EBITDA beat versus UBS’ estimates was primarily driven by Commercial, as well as stronger Aeronautical and International contributions.

Weaknesses

• The worst performing airline stock for the week was Expedia, down 14.6%. Shanghai International Airport (SIA) released its first quarter 2024 results, which was below UBS estimates. They attribute the main reasons for the lower-than-expected results to duty-free rental revenue being recorded at Rmb347 million, up 5% year-over-year, but significantly lower than the market consensus of over 10% year-over-year.
• U.S.-bound ocean container rates moderated again through April after triple digit increases earlier this year due to the situation in the Red Sea. Rates again declined 20% on both the East and West Coasts through April, though still above pre-Red Sea disruption levels, according to TD.
• The Big 3 Chinese airlines’ average first quarter 2024 net loss was RMB-0.6 billion, impacted by weak unit revenues and foreign exchange. Air China had the worst result with first quarter unit revenues surprisingly down 6% quarter-over-quarter, while China Southern Airlines had the best result amongst the Big 3, with first quarter RMB+0.8 billion net income showing its first return to quarterly profit since COVID, according to Bank of America.

Opportunities

• Cowen sees strong demand for leased assets continuing for the foreseeable future as airlines scramble for capacity. Many airlines are holding onto older aircraft, or extending leases on aircraft, as they await new deliveries.
• DSV management is on the road with the following message: 1) DSV aims to grow market share and profit by increasing its wallet size with large customers, 2) management is confident of meeting its fiscal year 2024 EBIT guidance.
• The Wall Street Journal reported that Embraer is exploring options to create a new aircraft that would directly compete with Boeing’s 737 MAX and Airbus’ A320 aircraft families. Embraer does not currently manufacture an aircraft that directly rivals the size and range of Boeing’s or Airbus’ narrowbody aircraft.

Threats

• The Department of Transportation published new rules that go into effect over the next 6-12 months, noting passengers will be entitled to a refund if their flight is canceled or significantly changed. The rule requires airlines to automatically issue refunds in seven business days for credit card purchases. Notably, refunds must include all imposed taxes/fees, regardless of if refundable to airlines.
• Tanker orders have historically averaged about 30 million tons per year, but each year between 2018 and 2022, the average was well below those levels. Consequently, the average age of the tanker fleet rose from 10.4 years to 13.3 years currently, Stifel reports.
• According to Cowen, maintenance costs are up 20% or more and are out of control. There is limited available capacity in maintenance shops which are having to raise pay to hire and retain skilled labor. Aircraft that were delivered within the last decade are at the point where they need to go through their first major maintenance cycle.

Luxury Goods and International Markets

Strengths

•  The eurozone’s first-quarter gross domestic product (GDP) increased by 0.3% from the previous quarter, marking the strongest pace in one year and a half. Germany’s economy grew by 0.2% in the three months to March, rebounding from a contraction in GDP of 0.5% in the previous quarter. France, Italy and Spain also exceeded analyst expectations.
• China’s manufacturing activity remains in expansionary territory, according to data released this week. The China Manufacturing PMI was reported at 50.4, slightly higher than the expected 50.3. The Caixin Manufacturing PMI was released at 51.1, surpassing the expected 51.0.
• Melco International Development Limited, a casino and gaming company trading in Hong Kong, was the best-performing S&P Global Luxury stock, gaining 19.59% in the past five days. Macau casino shares gains on better-than-expected April Revenue. 

Weaknesses

• Housing data remains weak in China. The value of new home sales dropped by about 45% year-over-year in April, following a 45% decline in March. According to FactSet, average new home prices in 10 cities rose by 1.08% year over year, while resale prices fell by 5.28% during the same period.
• In the United States, April nonfarm payrolls grew by 175,000, below the consensus forecast of 235,000 and March’s upwardly revised figure of 315,000 (previously reported as 303,000). FactSet reported that February data was also revised down by 34,000. This marks the weakest headline reading since October.
• Norwegian Cruise Line Holdings was the worst-performing S&P Global Luxury stock, losing 16.2% in the past five days. Shares declined after the company reported quarterly finacial results.

Opportunities

• Beijing city has relaxed some restrictions on multiple home ownership after 13 years. Families that have reached the current ownership limits will be allowed to purchase one additional home in the area outside of the city’s Fifth Ring road. Rules regarding single adults buying a second property in the area have also been eased. Some other cities have removed city-wide restrictions. Supportive government policies are boosting equities, particularly those traded in Hong Kong. This year, the HSCI Index has outperformed the S&P 1500 Index, entering a bull market after stocks gained more than 20% from their recent low in January.

• Apple reported stronger-than-expected sales in the first quarter and announced a $110 billion buyback program, the largest in U.S. history. The company has experienced a sales decline in five out of the past six quarters, but for the current period (second quarter), Apple expects sales to climb by a percentage in the low single digits.
• Shares in Spanish fashion and beauty group Puig, which includes brands like Nina Ricci, Carolina Herrera and Paco Rabanne, started trading on Friday, gaining 3%. Going public will allow the company to benefit from the expansion in the luxury sector and compete with giants such as Estee Lauder, Hermes, Louis Vuitton and Kering.

Threats

• Cruiseliner Carnival has adjusted some of its trip schedules to avoid the Red Sea area. According to Bloomberg, two world cruises planned for 2025 will no longer include stops in the Middle East or Asia, opting instead for new port destinations in Africa and Europe.
• Tesla eliminated almost the entire Supercharger organization, cutting nearly 500 positions in addition to the more than 10% staff cuts from mid-April. This move will slow the expansion of the charging network for electric cars. This decision came at a time when other carmakers were starting to use Tesla’s charging stations.
• Luxury analysts are banking on strong performance in the luxury sector with the recovery in China and Chinese tourists resuming international trips. China is the world’s biggest spender in the luxury sector, accounting for half of its sales. The country has not experienced as strong a post-pandemic recovery as other countries like Europe and the United States. If we don’t see a strong recovery in China, the luxury sector will be negatively impacted.

Energy and Natural Resources

Strengths

• The best performing commodity for the week was natural gas, rising 11.80%. Investors may be speculating there will be a return to higher gas prices, but they have an inventory problem to deal with regarding that investment case. Bloomberg reports that net injections into storage amounted to 59 billion cubic feet (Bcf) for the week ended April 26, resulting in total working gas stocks of 2,484 Bcf. That is 642 Bcf more than the five-year average and 436 Bcf more than the year-ago period, the Energy Information Agency (EIA) said.
• Canada, home to the world’s third-largest crude deposits, is on the verge of reshuffling global oil flows with its Trans Mountain pipeline expansion set to start commercial operation this week. The much-delayed expansion promises to vault Canada into a new role in global energy markets by transporting an additional 590,000 barrels a day from Alberta’s landlocked oil sands to the Pacific Coast, according to Bloomberg.
• Uranium is currently trading near 15-year highs at just under $90/pound as markets remain undersupplied with several years of inventory drawdowns now compounding. Importantly, Bank of America is yet to include growing power demand for data center and chip manufacturing in their forecasts.

Weaknesses

• The worst performing commodity for the week was coffee, dropping 10.38% as the International Coffee Organization reported world exports were up 8.1% in March vs. the prior year. Oil was the second worst performing commodity with a drop in price of 6.92% for the week with the potential of a peace deal between Israel and Hamas that would reduce geopolitical tensions in the Middle East. Brent crude traded below $89 a barrel while West Texas Intermediate (WTI) dropped beneath $84, according to Bloomberg.
• Not all the oil markets look strong with crude prices in the $80s. Diesel has been struggling of late, with four-week average consumption in the U.S. near the average seasonal low of the last five years, according to the Energy Information Administration’s weekly data. While it is a time of year when such fuels generally weaken, persistent diesel softness could weigh on crude prices in time if it continues, with premiums of the fuel under pressure. Weak diesel prices reflect a slowdown in economic activity.
• The West Australian is indicating that the Ravensthorpe mine, owned by First Quantum Minerals Ltd., is the latest nickel domino in western Australia to fall as the ongoing price bloodbath wipes away approximately 330 local jobs, according to Bloomberg.

Opportunities

• Nano One Materials and Worley entered into a Strategic Alliance Agreement and a License Agreement for the purposes of jointly developing, marketing and licensing a process engineering design package for the deployment of cathode active material (CAM) production facilities with potential customers in the lithium-ion battery materials sector. Nano One had commenced a feasibility study back in February to design the first commercial LFP plant, but for a company with just a $172 million market capitalization, financing the construction could be too dilutive for shareholders. Worley is a $5.4 billion company with a fleet of engineers 50,000 strong that operates in 45 countries around the world and is a major player in the energy sector. This partnership derisks Nano One’s plans to roll out their technology for a much wider adoption.
• Glencore is evaluating a potential bid for Anglo American, a move that could set up a takeover battle with BHP Group for the mining company, Reuters reported. Glencore has had internal preliminary discussions and those may not lead to the company making an approach to Anglo, Reuters said Thursday.
• Canaccord foresees upward pressure on the uranium spot price, with spot being up $3/pound recently. Furthermore, with clarity having now being provided on the timing (and certainty) of a U.S. ban on Russian uranium imports, they foresee a pick-up in utility term contracting activity throughout the remainder of this year. In their view, lower year-to-date volumes in the term market are partially attributable to legislative overhang.

Threats

• According to the Financial Review, the world’s largest miner, BHP, has been warned not to lob a “value destructive” improved bid for Anglo American and risk over-paying to secure the coveted copper assets contained in the beleaguered London-listed target’s empire. Shares in BHP have declined since it made the $60 billion bid for Anglo American that was swiftly rejected last week, raising the prospect of a better deal being extracted from BHP.  
• Analysts at National Bank of Australia expect to see iron ore prices in the $80s-a-ton range for the rest of the year with successful quarterly lower prices at the global outlook remains subdued, particularly in China, which is the marginal consumer of most commodities. China’s property construction sector hasn’t ended its downturn and steel exports from China are facing new tariffs as importers seek to defend their domestic supply chains of steel.
• A new copper heatmap from Bloomberg Intelligence shows a mid-40s reading, indicating deteriorating  fundamentals, with history showing the potential for a price setback in the absence of sustained China stimulus or widespread smelter closings, BI Metals and Mining Analyst Grant Sporre writes. “Underlying signals have diverged — and are at extremes  — with inventories, premiums and arbitrage suggesting a pricing  disconnect.” 

Bitcoin and Digital Assets

Strengths

• Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Helium, rising 55.16%.
• Tether Holdings, the operator of the largest stablecoin, said it posted record net profit of $4.52 billion in the first quarter, reports Bloomberg, largely driven by interest earned from its holdings of U.S. Treasuries and appreciation in Bitcoin and gold. The market value of Tether’s USDt token has climbed over $110 billion, as the demand for the stablecoin rose during the latest crypto bull market. 
• A key issuer of Hong Kong’s new spot Bitcoin and Ether ETFs suggested the products are a step toward more diversified portfolios for Chinese investors. The launch of funds on Tuesday “opens the door for a lot of RMB holders” seeking alternative investments, writes Bloomberg.

Weaknesses

• Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Pendle, down 24.64%.
• The prospect of higher-for-longer interest rates is weighing on crypto, reports Bloomberg, underlined by deepening Bitcoin losses after the token’s worst monthly drop since the collapse of Sam Bankman-Fried’s FTX empire in November 2022. Bitcoin slumped almost 16% in April.

• Binance founder CZ was ordered to spend four months in prison for failures that allowed cybercriminals and terrorist groups to freely trade on the world’s largest cryptocurrency exchange. Zhao was sentenced Tuesday by U.S. District Judge Richard Jones in Seattle, writes Bloomberg.

Opportunities

• Nasdaq listed coal miner Alliance Resource Partners said in an earnings call that it has mined $30 million in bitcoin using excess power at its facilities, reports Bloomberg. The CFO said that the company had 425 bitcoins on its balance sheet which it is valuing at $30 million.
• Hong Kong’s stock exchange indicated the bourse is open to an expanded roster of crypto exchange-traded funds, as the city’s first spot-Bitcoin and Ether products go live, according to Bloomberg.
• The bankruptcy estate of the failed FTX cryptocurrency exchange plans to auction off another unspecified amount of Solana tokens this week. A “blind auction” will be held for the next batch of SOL, according to two people familiar with the process who asked to remain anonymous, writes Bloomberg. 

Threats

• Roger Ver, an early investor who was sometimes referred to as Bitcoin Jesus, has been charged for mail fraud, tax evasion and filing false returns in order to avoid paying at least $48 million in U.S. taxes, reports Bloomberg. He was arrested over the weekend in Spain over criminal charges.
• MicroStrategy stock slipped lower on Tuesday after the company reported revenue and profit short of Wall Street’s expectations. The company reported a loss of $3.09 a share on revenue of $115 million in the first quarter, below the loss of 55 cents a share on revenue of $121.7 million expected, writes Bloomberg.
• U.S. spot Bitcoin ETFs suffered their largest daily outflow as the digital token heads for its worst week since August 2023. Investors pulled a net $564 million from the batch of almost a dozen funds on Wednesday, writes Bloomberg.

Defense and Cybersecurity

Strengths

• Northrop Grumman has secured a $387-million contract to provide logistic support services for Italy, Japan and South Korea’s RQ-4 Global Hawk drones through April 2025, with work conducted at various air bases in these countries.
• The Space Development Agency awarded Boeing’s Millennium Space Systems a $414 million contract to build eight missile defense satellites under the FOO Fighter program for a 2026 launch, aiming to enhance missile threat detection and tracking capabilities.
• The best performing stock in aerospace and defense this week was Howmet Aerospace, rising 18.81%, to a record high after the company increased its full-year earnings and revenue forecasts, driven by strong demand for air travel despite challenges in Boeing’s 737 MAX production.

Weaknesses

• The U.S. Treasury Department renewed sanctions waivers for at least 10 Russian banks, including the Central Bank, to support energy-related transactions despite rising costs, with the waiver effective immediately through November 1.
• The EU and U.S. condemned Georgia’s violent police response and the proposed “foreign agent” law, which mirrors Russian policies to suppress non-governmental organizations (NGOs), as Georgian President Zourabichvili and protesters opposed the law, urging the ruling party to retract it amidst escalating conflicts and international diplomatic interventions.
• The worst performing stock this week was Huntington Ingalls Industries, falling 11.1% following weak free cash flow and a focus on non-operational items in its quarterly earnings report, despite an earnings-per-share beat driven by soft shipbuilding margins.

Opportunities

• Despite delays in Western military and financial aid allowing Russia to gain ground, NATO Secretary-General Jens Stoltenberg believes Ukraine can still prevail and take the military initiative, as echoed by Ukrainian President Volodymyr Zelenskiy, who emphasized the urgency of receiving timely aid for effective counteroffensive actions.
• The U.S. defense industry is set to see significant growth from a newly approved $95 billion aid package for Ukraine, Israel and Taiwan, boosting military production and benefiting companies like Lockheed Martin and RTX, despite criticisms from lawmakers and military officials about increased share buybacks amid heightened military spending.

Switzerland has organized a conference on Ukraine’s peace plans, inviting over 160 countries excluding Russia, to discuss a common roadmap for peace in accordance with international norms. It’s uncertain who will attend and at what level, including China’s participation.

Threats

• Israeli officials increasingly suspect that the International Criminal Court is preparing arrest warrants for Prime Minister Benjamin Netanyahu and other Israeli leaders, as well as Hamas officials, for actions related to the Gaza conflict, including allegations of artificially starving civilians.
• A Texas billionaire is suing Booz Allen Hamilton for negligence after an employee leaked his and other high-profile individuals’ tax information, leading to media misrepresentation and claims of systemic security failures by the consulting firm and the IRS.
• Thousands of Russians, initially fleeing due to the Ukraine invasion, are returning amid residence and work issues abroad, inadvertently boosting Putin’s war economy and providing a propagandistic edge despite their personal opposition to his regime.

Gold Market

This week, gold futures closed at $2,309.30, down $37.90 per ounce, or 1.61%. Gold stocks, as measured by the NYSE Arca Gold Miners Index, ended the week lower by 3.25%. The S&P/TSX Venture Index came in off 0.83%. The U.S. Trade-Weighted Dollar fell 0.85%.

Strengths

• The best performing precious metal for the week was platinum, up 5.50%. Impala Platinum Holding reported quarterly production that increased from a year earlier and that customer orders remained robust. Over the past four years, Chinese platinum imports have run in the range of 2.8-3.6 million ounces per year (40-50% of total annual supply), well ahead of apparent demand of 2 – 2.5 million ounces. This tightens the metal balance in the rest of the world, according to Morgan Stanley.
• India’s gold buyers tend to be price-sensitive, so demand usually pulls back when prices ex-India rally. That said, the recent consolidation in gold has brought back some stabilisation, with premia of domestic prices in the Asian country relative to prices in London rallying, according to Bank of America.
• Gold buying by central banks posted its strongest start to any year on record in 2024, helping drive overall demand for bullion higher in the first quarter. The public institutions added 290 tons of gold to their official holdings during the three-month period, with China being the biggest buyer, the World Gold Council (WGC) said Tuesday in a report, according to Bloomberg.

Weaknesses

• The worst performing precious metal for the week was silver, down 2.92%. Penoles reported EBITDA of $197 million in Q1, down 4% quarter-over-quarter and 22% year-over-year, came in 18% below the $240 million market consensus. Earnings per share (EPS) in the quarter of $-0.10 came in well below the consensus at $0.22, according to Scotia.
• Resolute Mining’s production of 76,000 ounces at an all-in sustaining cost (AISC) of $1,487/oz was lower than Canaccord’s estimate of 84,000 ounces at $1,409/ounce. The miss was largely driven by a two-week maintenance shutdown at Syama and mining delays at Syama oxides (since resolved).
• Gold fell, with market watchers saying the previous day’s rally in response to Federal Reserve Chair Jerome Powell’s comments was overoptimistic. Bullion dipped to about $2,300 an ounce after ending 1.5% higher in the prior session, the biggest one-day gain since mid-April. Treasury yields tumbled Wednesday — buoying bullion — as Powell struck a less hawkish tone than expected, saying policymakers need more evidence that price gains are cooling before reducing borrowing costs, according to Bloomberg.

Opportunities

• Great Pacific announced that it has received notification from the Papua New Guinea Mineral Resources Authority of the grant of the advanced stage and past producing Wild Dog Exploration License, according to Bloomberg. Recent samples collected from a historic stockpile near the Wild Dog Zone include Sample 30104, which assayed 242 grams per ton (g/t) of gold, 601 g/t of silver and 9.52% copper, and Sample 68001, which assayed 122.5 g/t of gold, 350 g/t of silver and 11% copper. Besides near-surface, high-grade epithermal gold occurrences, the land position there are three identified copper-gold porphyry targets.
• Bitcoin ETFs have reached saturation point and may be showing some signs of fatigue. The $16 billion iShares Bitcoin Trust share price closed 1.7% below its net asset value. Other Bitcoin ETFs are also trading at discounts. The value of Bitcoin has declined more than 15% since its peak in March. Bloomberg reports that Bitcoin derivatives traders are positioning themselves for a lull in summer trading activity. Bitcoin and crypto currency investors need a new catalyst, post the creation of all the Bitcoin ETFs, which are now just competing on which trust can offer the lowest management fee.
• Gold had another good month, hitting a fresh record. Prospects remain broadly positive over the balance of 2Q, including further evidence of sustained central bank buying, especially from China, according to Bloomberg. And active gold fund managers will again be reaping the reward of arbitraging the gains away from passive investors parking their money in VanEck’s gold ETFs rebalancing, since the new weightings have been announced and they must weight a set time period before they can execute their trades.  

Threats

• With platinum and palladium fundamentals challenged, and commenting on making operations more efficient, Impala’s spokesperson Johan Theron said, “Labor is a big cost component, so you always start with labour by offering voluntary separation packages,” adding that “We aim to ensure every operation in our portfolio can stand on its own and remain, at minimum, cash neutral through the cycle given prevailing metal prices. This approach is premised on operating performance and metal prices — if performance slips [or] metal prices deteriorate further, we will have to take more drastic action to remain profitable.”
• Safety protocols need to be followed and training must be ongoing to reinforce these safe work habits. Unfortunately, a rock-drill operator died after a fall-of-ground incident at Harmony’s Doornkop mine South Africa on May2.
• Saba Capital Management, the largest common shareholder of ASA Gold and Precious Metals Limited, commented on the outcome of the Fund’s 2024 Annual Meeting of Shareholders. Based on preliminary results of the Annual Meeting, shareholders voted to elect Saba nominees Ketu Desai and Paul Kazarian to ASA’s Board of Directors, according to Bloomberg.

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Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (03/31/2024): 

Aena

DSV

Embraer SA

Boeing

Airbus

First Quantum Minerals Ltd.

Nano One Materials Corp.

Glencore PLC

BHP Group Ltd.

Resolute Mining Ltd.

Great Pacific Gold Corp.

Harmony Gold Mining Co. Ltd.

Azul SA

Expedia Group Inc.

Apple Inc.

The Estee Lauder Cos. Inc.

Hermes International SCA

LVMH Moet Hennessy Louis Vuitton

Kering SA

Carnival Corp.

Tesla Inc.

*The above-mentioned indices are not total returns. These returns reflect simple appreciation only and do not reflect dividend reinvestment.

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