FGR's US acquisition is all about accelerating opportunities

Donald Trump showed that he can match it with the best junior mining promotors with the announcement of an MoU to provide some respite from the Iran War. An MoU is used to suggest a deal is in place, sort of. Typically, an MoU is not binding, but it is one of the best promotional tools available. It is designed to suggest things are happening, even if not yet complete.

Here, Trump was unable to secure a deal. He capitulated on this objective because discussions were proving ineffective and the closest he could get to a deal was to salvage an MoU. There are now 60 days when we pretend that things are back to normal while the long term future is still being negotiated. But, things are not really back to normal yet. There is still the wild card of Israel's attacks in Lebanon and these could still derail the process.

Notwithstanding the MoU, only a few ships have started trickling through alternative northern and southern routes in the Straits of Hormuz. The central channel remains choked by an estimated 80 sea mines. Major maritime operators are exercising extreme caution, and commercial traffic remains way below normal levels.

Markets reacted positively in anticipation of the announcement last week but they took a step backwards when it was disclosed as only an MoU. There is still uncertainty with which the markets are having to deal. The gold price recovered somewhat, but it was easing at the end of the week.
 

 WeeklyComm20June2026.pages2.pdf