Jefferies-Metals Mining Canada Mining Weekly：Gold Continues to March Higher-20250926

Gold price continues to march higher even as US economic data looks strong,August PCE was as expected at 2.9%, and US Fed Chair Jerome Powellpushed back on expectations of more rate cuts in the coming months. Goldis up ~$100/oz w/w to ~$3,800/oz and silver is now trading ~$46/oz. Copperwas topical this week following the devastating and tragic landslide at FCX'sGrasberg mine, and is currently trading ~$4.70/lb.

Company updates. According to media reports, the government of Ecuador will begin the processof suspending (notably, not revoking) the environmental license for DPM's Loma Larga project,due to local opposition to the project over concerns about potential water source contamination.Ecuador President Daniel Noboa has reportedly asked the local governments to submit technicalreports and administrative resolutions regarding the alleged risks of water source contamination.DPM received its environmental license on June 23. The company previously noted it wouldrelease an updated feasibility study for Loma Larga after the acquisition of Adriatic Metals, whichcompleted on September 3. NGEX hosted a Lunahuasi-focused Investor Day on September 25.Our main takeaways: 1. Ample and growing evidence that Lunahuasi is geologically unique withoverlapping/overprinting styles of mineralization; 2. Exploration upside potential as NGEX drillsthe "missing" parts of the system -- deposit remains open in all directions, and 3. Managementviews developing a starter operation focused on the highest-grade portion of the deposit as thehighest-return opportunity. HBM announced on September 23 that due to riots in Lima and severalprotests across Peru, including some closer to the mine, the company is temporarily shutting downits Constancia mill and potentially bringing forward planned maintenance. HBM does not expectan impact on its 2025 Peru production and cost guidance. Historically, these protests have notlasted long, and the impact is usually minimal. See our note. NEM announced the first gold pour atAhafo North and expects the new mine to reach commercial production in 4Q25. Ahafo North adds275-325koz over 13 years LOM. KGC has completed the sale of its 9.4% equity interest in Asantefor total proceeds of C$119M. KGC's equity interest came with the Aug 2022 divestment of its non-core Chirano mine in Ghana to Asante. KGC still holds convertible instruments that represent ~8.4%of Asante's shares outstanding.