"Q3 20 essentially delivered what we expected, albeit a stronger recovery in base metal prices and an earlier-than-expected recovery in coal prices," UBS said overnight.
"Iron ore continued to surprise us and the market, averaging US$118/dmt CFR in Q3, which in turn drove FMG up 24% over the quarter.
"The ASX 300 Metals & Mining index was up 6% over the quarter, outpacing the ASX 300 (up 2%)."
Last week, S&P Global Ratings lifted its assumptions for commodity prices for the rest of 2020 and 2021 due to a better-than-expected recovery of the global economy to date, especially in China.
"We believe that China's $500 billion stimulus package will continue to drive the country's demand for commodities in the short term, supporting our revised assumptions and even higher prices," it said.
"A second wave of lockdowns and the elections in the US will result in some uncertainty, causing higher-than-normal volatility in commodity prices.
"In our view, despite the improved outlook for prices, mining companies are unlikely to increase their recently reduced capex programs, leading to some capacity constraints over the medium and long term."
Aside from quarterly production reports this month, Diggers & Dealers will be a key focus for the sector.
About 1700 Western Australia-based delegates are expected to converge on Kalgoorlie next weekend for the three-day event.
Presenters outside WA will deliver virtual presentations to the physical audience, while streaming will be available to those outside WA.
The Australian Nickel Conference will also be held next week in the lead-up to Diggers.
Many companies are due to report news this month, and it is likely many will wait for the week of Diggers.
Among the presenters, Tietto Minerals will report an update to the 2.2Moz resource at its Abujar gold project in Cote d'Ivoire around mid-month. Analysts expect the figure to surpass 3Moz.
Assays for Alkane Resources' Boda gold-copper project are expected any day now, while a maiden indicated resource for the Roswell gold project is due mid-month.
Musgrave Minerals will report a maiden resource for the high-grade Starlight and White Light lodes at Break of Day late in the month.
Adriatic Metals should release the PFS for its Rupice polymetallic project.
A maiden resource and scoping study for Blackstone Minerals' Ban Chang nickel project in Vietnam is due any day now.
Hot Chili has been finalising the maiden resource for its Cortadera project, which Argonaut Securities has the potential to be about 500Mt at 0.65% copper equivalent.
Yandal Resources should release an updated resource for its 191,000oz Flushing Meadows gold deposit in WA.
Podium Minerals has flagged the release of an updated resource for its Parks Reef project.
IPOs Pan Asia Metals, Miramar Resources, Megado Gold and Siren Gold are expected to list, as well as Iluka Resources spin-off, Deterra Royalties.
Now that a legal challenge is out of the way, gold miner Gascoyne Resources will close its retail entitlement offer next week ahead of being reinstated to trading on the ASX late in the month.
