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Fresh outbreaks worry markets

Key market futures are pointing lower around the world as COVID-19 cases continue to rise, including a fresh outbreak in Beijing.
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Scotgold Resources was on the rise after resuming construction at Cononish in Scotland

Staff reporter

There were 20,647 new cases confirmed in Brazil and 18,514 in the US in the 24 hours to 10am yesterday, according to the World Health Organisation.

Meanwhile jurisdictions are lifting COVID-19 restrictions and miners and explorers are getting back to business.

Developer Scotgold Resources (AIM: SGZ) was among the market risers, closing up 17.95% yesterday.

The company said construction and development activities had resumed on Monday at its Cononish gold and silver mine in Scotland, following a government announcement regarding construction last week.

In Toronto, Auryn Resources (TSX: AUG) gained 11.8% as it resumed exploration at its Sombrero and Curibaya projects in southern Peru, having received government approval to resume following COVID-19 restrictions.

Meanwhile Aura Minerals (TSX: ORA) closed up 29% to a one-year high of C$120, despite no news since announcing at the start of this month it had resumed looking into a possible Brazil IPO and listing.

The gold price remains about the same price as this point yesterday, at US$1,726 an ounce on the spot market.

Commodities including copper closed higher on the London Metal Exchange.

Finally, iron ore miners were lower in Australian morning trade after Vale said it would resume operations at its Itabira complex, which was ordered to close earlier this month after a COVID-19 outbreak.

Fortescue Metals Group (ASX: FMG) was down 3% at the time of writing and BHP (ASX: BHP) was off about 0.6%.