U.S. markets, Oct. 7-11

U.S. markets climbed late in the week with signs that lawmakers might strike a short-term deal to avoid a debt default. The Dow Jones Industrial Average rose 1.09% to 15,237.11 and the S&P 500 advanced 0.75% to 1,703.20. Economists estimate that the government shutdown that began on Oct. 1 is eating away 0.1% a week from the gross domestic product, according to Reuters. Consumer sentiment hit a nine-month low in October and jobless claims by non-federal workers rose to a six-month high the week before. The Philadelphia Gold & Silver Index fell 4% to 86.95.

Newmont Mining shares fell US$1.18 to US$25.62. The company lowered its 2013 guidance for copper production and revised its attributable copper production due to lower-than-expected mill throughput at Boddington, and lower-grade ore at Batu Hijau. The company expects to produce 145 million lb. copper (down from 170 million lb.). Attributable gold production would stay the same at 5.1 million oz. For the third quarter, attributable gold and copper production reached 1.28 million oz. gold and 34 million lb. copper. Increased mill throughput in Nevada helped production, as well as higher grades and increased mining productivity due to improved efficiency at Tanami in Australia.

Goldcorp and Barrick Gold also fell during the trading week. Goldcorp dropped US$1.36 to US$23.54. The gold major reported its tenth monthly dividend payment of the year of 5¢ per share to shareholders of record, while Barrick, the second most actively traded stock of the week, lost 80¢ and closed at US$17.23. On Oct. 11 the Antofagasta Court of Appeals in Chile had agreed to look at a new appeal stating that the Pascua-Lama mine engaged in “illegal and arbitrary acts” regarding the “installation, execution and realization of works and activities . . . that were not authorized by the environmental regulator.” Mine construction has been frozen by the country’s Supreme Court and environmental regulator, and Barrick has submitted a plan for water-management infrastructure. The fresh appeal against the project comes after Chile’s Supreme Court upheld environmental approval for the project in September.

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