Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Newcrest Mining Ltd.’s Telfer gold mine is expected to get a deluge of heavy rain later this week after the biggest cyclone to hit the Western Australian coast in almost a decade makes landfall.
Severe tropical cyclone Ilsa is currently 500 kilometers (310 miles) north of Port Hedland and is forecast to cross the coast late Thursday or early Friday, according to the Bureau of Meteorology. The storm will maintain cyclone intensity as it tracks past Telfer and further inland, it said.
The cyclone is expected to cross the coast north of Port Hedland and miss the region’s major iron ore mines as it moves inland past the Telfer operation, which is 400 kilometers from the port. Newcrest has reduced onsite staffing levels as the company prepares for the storm, a spokesperson said.
All vessels are expected to be cleared of port limits at Port Hedland by 6 p.m. local time, according to a notice from Pilbara Ports Authority. BHP Group and Fortescue Metals Group Ltd. ship iron ore from the export hub.
Ilsa has developed into a category 3 cyclone and is expected to strengthen to a category 4 before it crosses the coast with extreme gusts up to 270 kilometers an hour, according to the bureau. While cyclones typically lose strength quickly after making landfall, Ilsa is forecast to be at least a category 2 as it moves inland near Telfer.
(By Ben Sharples, with assistance from Kevin Varley)
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