The White House warned last Wednesday that a government shutdown would trigger widespread dismissals of employees in government programs that don't align with President Trump's priorities. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during a shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.The US Sep ADP employment change unexpectedly fell -32,000, weaker than expectations of a +51,000 increase and the largest decline in 2.5 years. Also, ...

Core Viewpoint - Zijin Gold's shares surged over 60% following its trading debut in Hong Kong, raising approximately $3.2 billion, marking it as the world's second-largest IPO this year [1][3]. Group 1: Company Overview - Zijin Gold is the overseas gold-mining arm of China's Zijin Mining Group, which operates all of its gold mines outside of China [3]. - The company produced 1.3 million ounces (40.4 tonnes) of gold in 2024, ranking ninth globally in reserves [5]. - Zijin Mining is the largest producer of mined gold in China and has a global footprint that includes Central Asia, South America, Oceania, and Africa [4]. Group 2: Market Context - The IPO of Zijin Gold comes at a time when spot gold prices have recently surpassed $3,800 per ounce, driven by strong safe-haven demand and global economic uncertainty [2]. - The listing is part of a resurgence in Hong Kong's IPO market, which raised about $14.1 billion in the first half of 2023, reflecting a 695% year-on-year increase from the same period in 2022 [3]. Group 3: Strategic Moves - In April, Zijin Mining announced a restructuring to carve out its overseas gold operations into the new Zijin Gold unit, aiming to sharpen its focus on gold [4]. - Major investors in the IPO included Singapore's sovereign wealth fund GIC, Hillhouse's HHLRA, and BlackRock Funds [3].

Industry Overview - The Zacks Mining – Gold industry is part of the broader Zacks Basic Materials sector, which is expected to see a decline in earnings for the second quarter, with overall earnings projected to fall by 7.5% despite a 2.8% increase in revenues [1] Gold Prices and Market Dynamics - Gold prices have increased significantly this year, rising approximately 29% year to date, driven by global trade tensions and safe-haven demand [3] - On April 22, gold prices reached a record high of $3,500 per ounce, and while they retreated, they closed the second quarter above $3,300 per ounce, marking a nearly 6% increase in the quarter [4] Company Performance Expectations - Gold mining companies are expected to benefit from higher gold prices and efforts to improve operational efficiency and reduce costs in their second-quarter results [2] - Despite higher mining costs due to inflationary pressures, companies are focused on reducing operational costs and improving efficiency, which is anticipated to support their margins [5] Selected Companies and Earnings Estimates - Barrick Mining Corporation is expected to report earnings of 47 cents per share, with an Earnings ESP of +1.14% and a Zacks Rank 1, having beaten earnings estimates in three of the last four quarters [9] - Franco-Nevada Corporation has an Earnings ESP of +0.91% and a Zacks Rank 3, with a consensus estimate of $1.10 for second-quarter earnings, benefiting from increased contributions from streaming agreements [11] - Integra Resources Corp. has an Earnings ESP of +4.76% and a Zacks Rank 3, with a consensus estimate of 7 cents for second-quarter earnings, expected to benefit from strong production at the Florida Canyon mine [13]