Uraniumore
HAYWOOD’S HERITAGE MOMENT: CANADIAN URANIUM – Postwar, uranium exploration gathered pace when the ban on private prospecting was lifted in 1947. Deposits around the Bancroft, Ontario area were discovered by the early 1950s, and the first discovery in Ontario’s East Lake region was in 1953. Source: World Nuclear Association

China Interest Rate Cut Sends Mining Equities/Commodities Higher

Mining equities and commodities were on Friday after China cut its interest rate for the first time in over two years, and European Central Bank (ECB) President Mario Draghi reiterated the banks readiness to expand its stimulus program. The cut in interest rates in China was unexpected, but comes after PMI figures showing manufacturing is getting close to contraction (see macroeconomic news, page 2). This move comes after Chinese President Xi Jinping recently downplayed concerns over the Chinese economy, stating the government could manage the dangers. The interest rate was cut 40 basis points to 5.6%. Meanwhile, the ECB’s readiness to expand its stimulus program underlines Draghi’s view that inflation needs to meet the ECB’s target “without delay”. While the ECB chief has hinted in the past that the central bank could increase the scope and size of its asset purchases—possibly to include government bonds—some analysts said his warnings about low inflation have been getting firmer. In response, gold and silver rose 1% and 0.67% to $1,200 and $16.49 per ounce respectively. Base metals also rose before a retracement late Friday afternoon saw copper, nickel, zinc and lead finish at US$3.08, US$7.52, US$1.04 and US$0.93 per tonne respectively. Iron ore continued its decline during the week, with the iron ore (62% Fe CFR China) price finishing at US$69.75 per tonne, while uranium price reached US$43.81 per pound before falling 12% to $43.38 per pound on Friday..