US equities continue to sink, Jan.11-15

U.S. stocks retreated, continuing the U.S. market’s worst-ever start to the calendar year, as oil prices tumbled and investors worried about the health of the Chinese economy. The Dow Jones Industrial Average fell 2.2% to 15,988.08 and the S&P 500 Index lost 2.2% to finish at 1,880.33, the lowest level since October 2014. The Nasdaq Composite dropped 3.3% to 4,488.42. The spot gold price fell 1.4% to finish at US$1,088.80 per oz. Oil prices settled below US$30 per barrel for the first time in 12 years.

Rare earth elements (REE) explorer Tasman Metals rose 6% to close at US19¢ per share. On Jan. 15, the miner said it would voluntarily delist its shares from the NYSE MKT to reduce listing fees and associated costs, adding its shares were not meeting the minimum share price requirement. While the company intends to list on the OTCQB, it will continue trading on the TSX Venture Exchange. Earlier in the week, Tasman said it was optimistic REE market conditions would improve in 2016. It plans to increase revenue opportunities from its flagship Norra Karr heavy REE project in Sweden, and optimize Norra’s processing flowsheet for REEs. To lower costs even more, it has withdrawn from the Finnish portfolio of chromite projects. Tasman ended last November with $2 million in working capital.

Timberline Resources plunged 44% to US12¢ per share. On Jan. 13, the gold explorer and developer announced Steven Osterberg, vice-president of exploration, would become its new president and CEO effective Jan. 21, replacing Kiran Patankar. Osterberg has spent the past four years managing the company’s technical services, which includes advancing Timberline’s Talapoosa project in Nevada through a positive preliminary economic assessment, and the Butte Highlands project in Montana through permitting.

Base metal miner Hudbay Minerals fell 36% to US$2.03 per share, after reporting its fourth-quarter 2015 results and 2016 production guidance. CIBC analyst Tom Meyer notes fourth-quarter copper output of 48,100 tonnes and copper sales of 58,700 tonnes were “weaker than expected,” while zinc production and sales exceeded his estimates. The analyst has a $10 target and “sector perform” rating on the stock.