U.S. equity indexes post losses, Jan. 12-16

News that consumer sentiment in the U.S. reached an 11-year high, along with optimistic comments  from the International Energy Agency that “signs are mounting that the tide will turn” for oil prices, helped U.S. equities rally on Friday, but the major indexes still posted a decline for the full trading week. The Dow Jones Industrial Average dropped 225.8 points, or 1.3%, to 17,511.57, and the S&P 500 Index fell 25.39 points, or 1.2%, to 2,019.42. The Philadelphia Gold and Silver Index rose 4.4% to 79.52, with the gold price rising 4.7% to US$1,280.30 per oz.

Shares of Goldcorp climbed US$2.95 to US$23.81. The company announced the sale of its Wharf mine in South Dakota to Coeur Mining for US$105 million and reported that 2014 gold production rose 11% to 2.87 million oz., while all-in sustaining costs fell 6% to US$950 per oz. This year Goldcorp forecasts production will grow by 20% to between 3.3 million and 3.6 million oz. gold, at all-in sustaining costs of between US$875 and US$950 per oz. Goldcorp expects production will reach 3.3 million to 3.6 million oz. in 2016; 3.4 to 3.7 million oz. in 2017; 3.1 to 3.4 million oz. in 2018; and 3.1 million to 3.4 million oz. in 2019. 

Golden Star Resources, which owns 90% interests in three gold mines in Ghana, jumped 23.8% to US29¢ per share. Despite numerous power-supply problems, production in 2014 reached 261,000 oz. gold. The company forecast 2015 production of between 250,000 and 275,000 oz. gold. Golden Star finished 2014 with cash and equivalents of US$39 million.

Cameco fell US84¢ to US$14.35 per share. The company reported that on a 100% basis last year, 0.34 million lb. uranium concentrate was produced from milling ore from Cigar Lake, and forecast packaged production this year of between 6 million and 8 million lb. The company said it expects Cigar Lake will ramp up to its full annual production rate of 18 million lb. by 2018. Cameco is the operator with a 50% stake, with Areva Resources Canada owning 37.1%; Idemitsu Canada Resources, 7.9%; and Tepco Resources, 5%. Cigar Lake ore is trucked 70 km to the McClean Lake mill, where it is processed into uranium concentrate.