US markets down in Oct. 31-Nov. 4 trading week

Continuing drama in Europe over the bailout of Greece pushed down U.S. equities and brought an end to the S&P 500’s four weeks of back-to-back gains. The S&P 500 dropped 2.48% to 1,253.23, while the Dow Jones Industrial Average slid 2.03% to 11,983.24. The Philadelphia Gold and Silver index inched up 0.48% to 208.97.

Shares of Royal Gold surged US$6.74 to US$79.29 on news of record financial results for the first quarter of fiscal year 2012. Net income attributable to Royal Gold’s shareholders reached US$22.5 million or 41¢ per share on royalty revenue of US$64.5 million for the first quarter of fiscal 2012. That compares to net income of US$11.8 million or 22¢ per share on royalty revenue of US$45.3 million in the first quarter of fiscal 2011. The 42% jump in revenue was primarily due to higher average gold and other metal prices and increased production at its Andacollo, Voisey’s Bay and Peñasquito properties and new revenue from Holt and Canadian Malartic.  

Despite torrential rains that flooded its flagship Loulo/Gounkoto complex in Mali during August, Randgold Resources maintained gold production in the third quarter and on an adjusted basis increased its quarterly profit by 29% to US$122.9 million. The company’s shares climbed US$6.52 to US$118.66.

Coal producer Alpha Natural Resources‘ shares gained US$1.53 to US$28.09. Third-quarter net income reached US$66.4 million or 29¢ per diluted share compared to net income of $31.9 million or 27¢ per diluted share for the third quarter last year. Coal revenues were significantly higher than the year-ago period primarily due to the inclusion of the first full quarter of shipments from legacy Massey operations.  

On the negative side of the ledger, Walter Energy slumped US$5.50 to close the week at US$75.63. The company’s third-quarter earnings fell to US$76.2 million, or US$1.21 per share, from US$136.2 million or US$2.55 per share in the year-earlier quarter. Walter Energy blamed higher costs including selling and general and administrative costs more than doubling to US$43.1 million in the third quarter. Agrium shares were also down, falling US$5.52 to US$78.40 despite reporting strong quarterly results for the third quarter on the back of “excellent margins supported by strong crop nutrient prices.” Consolidated net earnings in the third quarter reached US$293 million or US$1.85 per diluted share for the third quarter compared with net earnings of US$61 million or 39¢ per diluted share in the third quarter of 2010.